72
CapitaLand Limited
Annual Report 2015
Performance Overview
Maturity Profile
The Group has proactively built up suf ficient cash
reserves and credit lines to meet its short term debt
obligations, support its refinancing needs and pursue
opportunistic investments. The Group maintains a healthy
balance sheet and has unutilised bank facilities of about
S$5.6 billion. To ensure financial discipline, the Group
constantly reviews its loan profile so as to mitigate any
refinancing risks, avoid concentration and extend its
maturity profile where possible. In reviewing the maturity
profile of its loan portfolio, the Group also took into account
any divestment or investment plans, interest rate outlook
and the prevailing credit market conditions.
Interest Rate Profile
The Group manages its finance costs by maintaining a
prudent mix of fixed and floating rate borrowings. As at 31
December 2015, the fixed rate borrowings constituted 70%
of the portfolio and the balance 30% were on floating rate
basis. As finance costs formed an integral component of
the Group’s operating costs, a higher percentage in fixed
rate funding would offer protection against unexpected
rises in interest rates. In managing the interest rate profile,
the Group takes into account the interest rate outlook of its
loan portfolio, holding periods of its investment portfolio,
certainty of its planned divestments and operating cashflow
generated from its various business units.
Interest Cover Ratio and Interest Service Ratio
The Interest Cover Ratio (“ICR”) and Interest Service Ratio
(“ISR”) was 6.1 and 6.7 respectively. ICR was lower at 6.1
compared to 7.2 last year, primarily due to lower earnings
before net interest, tax, depreciation and amortisation as a
result of lower fair value gains on revaluation of properties
and higher provision for impairment and foreseeable
losses which was partially mitigated by better operating
performance and divestment gains. ISR was higher at
6.7 compared to 4.6 last year due to higher cashflows
generated from development projects and operations.
5.7
5.3
3.3
5.7
4.6
4.6
7.2
6.7
6.1
2.7
2011
2012
Restated
1
2013
Restated
1
2014
2015
Interest Cover Ratio and Interest Service Ratio
(times)
Interest Cover Ratio
Interest Service Ratio
14%
9%
13%
11%
18%
35%
Within
1 year
2 years 3 years 4 years 5 years More than
5 years
Debt Maturity Profile
(S$ billion)
2.2
5.7
2.9
1.7
2.1
1.5
Note: Convertible Bonds are reflected as held till final maturity.
12.2
17.5
15.9
16.0
16.1
2011
2012
Restated
1
2013
Restated
1
2014
2015
Interest Rate Profile
(S$ billion)
Fixed
Floating
66%
78%
70%
75%
70%
30%
25%
30%
22%
34%
1
Comparatives for 2012 and 2013 have been restated to take into account the retrospective adjustment relating to FRS 110
Consolidated Financial
Statements
.
