20 EARNINGS PER UNIT Basic earnings per Unit is based on: Group 2024 2023 US$’000 US$’000 Net loss for the year (178,003) (379,963) No. of Units No. of Units ’000 ’000 Weighted average number of Units 1,776,726 1,776,726 Basic EPU is calculated based on the weighted number of Units for the year. This is comprised of: (i) the weighted average number of Units in issue for the year; and (ii) the estimated weighted average number of Units issuable as payment of the Manager’s fees and Property Manager’s management fees for the year. Diluted EPU is the same as the basic EPU as there are no dilutive instruments in issue during the year. 21 FINANCIAL RISK MANAGEMENT Capital management The Manager’s objective when managing capital is to optimise the Group’s capital structure within the borrowing limits set out in the CIS Code by the MAS to fund future acquisitions and asset enhancement projects at the Trust’s properties. To maintain or achieve an optimal capital structure, the Manager may issue new Units or source additional borrowings from both financial institutions and capital markets. The Group has a policy to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Manager monitors the yield, which is defined as net property income from the property divided by the latest valuation for the property. The Manager also monitors the level of distributions made to Unitholders. The Group seeks to maintain a balance between the higher returns that might be possible with higher level of borrowings and the advantages and security afforded by a sound capital position. The Manager actively monitors the term of each loan facility, the weighted average cost of debt, and variable debt as a proportion of overall debt outstanding. The Manager also monitors the debt covenants on an ongoing basis and ensures there is sufficient cash available to make the payments under the loan agreement. During the year ended 31 December 2023, the Group’s breach of a financial covenant imposed by the Group’s lenders limited the Group’s ability to raise further debt funding. These resulted in the restructuring of existing credit facilities through the Recapitalisation Plan and the details pertinent to the Group’s capital management are disclosed in Notes 2.3, 4, 6, and 9. ANNUAL REPORT 2024 | 181 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024
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