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INDEPENDENT AUDITORS’ REPORT
REPORTS
In preparing the financial statements of the H-REIT Group and the Stapled Group, the H-REIT Manager is responsible for
assessing the ability of the H-REIT Group and the Stapled Group to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless the H-REIT Manager either
intends to terminate the H-REIT Group and the Stapled Group or to cease the operations of the H-REIT Group and the
Stapled Group, or has no realistic alternative but to do so.
The responsibilities of the H-REIT Manager include overseeing the financial reporting process of the H-REIT Group and
the Stapled Group.
Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free frommaterial
misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SSAs will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of these financial statements.
As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional scepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal controls.
• Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
internal controls of the HBT Group, the H-REIT Group and the Stapled Group.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the HBT Trustee-Manager and the H-REIT Manager.
• Conclude on the appropriateness of the use of the going concern basis of accounting by the HBT Trustee-Manager
and the H-REIT Manager and, based on the audit evidence obtained, whether a material uncertainty exists related
to events or conditions that may cast significant doubt on the ability of the HBT Group, the H-REIT Group and the
Stapled Group to continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditors’ report. However, future events or conditions may cause the HBT Group, the H-REIT Group and the Stapled
Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and contents of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
within the HBT Group, the H-REIT Group and the Stapled Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely
responsible for our audit opinion.
We communicate with the HBT Trustee-Manager and the H-REIT Manager regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in internal controls that
we identify during our audit.
We also provide the HBT Trustee-Manager and the H-REIT Manager with a statement that we have complied with relevant
ethical requirements regarding independence, and communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
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