179
Annual Report 2015
27 FINANCIAL INSTRUMENTS (CONT’D)
Foreign currency risk (cont'd)
Sensitivity analysis
A 10% strengthening of the Singapore dollar against the following currencies at the end of the financial year would
increase/(decrease) total comprehensive income and unitholders’ funds of the HBT Group and total return (before
any tax effects) and unitholders’ funds of the H-REIT Group and the Stapled Group, by the amounts shown below.
This analysis assumes that all other variables, in particular interest rates, remain constant.
HBT Group
H-REIT Group
Stapled Group
Total
comprehensive Unitholders’
Total
Unitholders’
Total
Unitholders’
income
funds
return
funds
return
funds
$’000
$’000
$’000
$’000
$’000
$’000
2015
Australian dollar
–
–
(1,132)
9,566
(1,132)
9,566
New Zealand dollar
–
–
(1,019)
–
(1,019)
–
United States dollar
–
–
(693)
19,754
(693)
19,754
Japanese yen
–
–
(278)
3,832
(278)
3,832
Sterling pound
13,574
–
(13)
–
13,561
–
Singapore dollar
(4)
–
(1)
–
(5)
–
2014
Australian dollar
–
–
(978)
10,031
(978)
10,031
New Zealand dollar
–
–
(566)
–
(566)
–
United States dollar
–
–
(1,430)
18,523
(1,430)
18,523
Japanese yen
–
–
1
3,567
1
3,567
Singapore dollar
(2)
–
(6)
–
(8)
–
A 10%weakening of the Singapore dollar against the above currencies at the end of the financial year would have had the
equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables
remain constant.
The H-REIT Group’s investments in its Australia, Maldives and Japan subsidiaries are hedged by Australian dollar,
United States dollar and Japanese yen denominated bank loans with the carrying amount of $329,947,000 (2014:
$351,090,000), which mitigates the currency risk arising from the subsidiaries’ net assets. The fair value of the borrowing
as at 31 December 2015 was $328,848,000 (2014: $349,663,000). The loans are designated as net investment hedge.
No ineffectiveness was recognised from the net investment hedge. The H-REIT Group’s investments in other subsidiaries
are not hedged.
NOTES TO THE FINANCIAL STATEMENTS
