Cold Storage
YEAR
IN REVIEW
OVERVIEW AND FINANCIAL REVIEW
In October 2015, CDLHT officially opened Claymore Connect (formerly known as Orchard Hotel Shopping Arcade) following
a comprehensive asset enhancement exercise. The enhancement exercise, which started in December 2013, has increased
the mall’s net lettable area by about 10,000 sq ft to approximately 54,000 sq ft
(13)
.
The proactive implementation of AEIs is expected to enhance CDLHT’s product offerings as well as the long-term revenue
generating ability of its properties.
HEALTHY CAPITAL STRUCTURE AND RISK MANAGEMENT
As at 31 December 2015, CDLHT’s total borrowing stood at S$926.0 million with a gearing ratio of 36.4%. CDLHT is rated
BBB- on the Fitch Issuer Default Rating and has an interest cover of 6.6 times for FY 2015.
To optimise risk-adjusted returns to Stapled Security Holders, CDLHT endeavours to balance an appropriate mix
of debt and equity in financing acquisitions and adopts proactive interest rate management strategies by maintaining
a higher percentage of fixed rate borrowings and through the use of interest rate swaps, where appropriate. In
2015, the H-REIT Manager successfully refinanced three of its expiring loans. In September 2015, the two floating
rate bridge loans amounting to ¥6.07 billion were refinanced with a fixed rate bond and term loan. In December,
the H-REIT Manager refinanced a A$93.2 million term loan and secured a fresh S$250.0 million revolving credit facility
following the expiry of the previous facility. As a result of the refinancing, the weighted average debt to maturity has been
extended to 2.8 years and the proportion of borrowings on fixed interest rates has increased to 60.2%.
Visitors to Claymore Connect will get to enjoy the convenience of a supermarket and also delight in the array of
offerings from the various restaurants as well as lifestyle services.
(13) Excludes net lettable area of the adjoining Galleria which is not part of the asset enhancement exercise.
Hua Ting Steamboat
MapleBear (Early Childhood Education)
Mon Bijou
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