/ 1 4 3
NOTES TO THE FINANCIAL STATEMENTS
C A M B R I D G E I N D U S T R I A L T R U S T
A N N U A L R E P O R T 2 0 1 5
12.
Gross revenue
Group
Trust
2015
2014
2015
2014
$’000
$’000
$’000
$’000
Property rental income
111,541
99,278 109,545
99,278
Other income
703
64
703
64
112,244
99,342 110,248
99,342
13.
Property expenses
Group
Trust
2015
2014
2015
2014
$’000
$’000
$’000
$’000
Land rental
7,362
5,629
7,362
5,629
Property tax
6,217
4,443
6,217
4,443
Repair and maintenance expenses
5,136
3,995
5,136
3,995
Property and lease management fees
4,791
3,955
4,736
3,955
Other property operating expenses
2,582
3,512
2,546
3,512
26,088
21,534
25,997
21,534
14.
Management fees and performance fees
Group and Trust
2015
2014
$’000
$’000
Management fees
– Amounts paid and payable in cash
4,450
4,210
– Amounts paid and payable in units
2,665
2,358
7,115
6,568
Performance fees
– Amounts paid and payable in cash
–
1,684
7,115
8,252
The performance fee calculation methodology was revised and approved at the Extraordinary General Meeting
on 19 May 2015, from a total return based formula to a DPU Growth Model. The performance fee in the DPU
Growth Model is computed at 25% of the growth in DPU for such financial year multiplied by the weighted
average number of units in issue for such financial year.
The DPU growth is measured by the excess of DPU for such financial year to the Highest DPU Threshold achieved
by the Trust in the previous years for which a performance fee was payable. For the purpose of calculation of the
performance fee payable under the revised performance fee structure, the Highest DPU Threshold is initially set
at 6.000 cents, or if the DPU achieved during the Performance Fee Waiver period is higher, then such higher DPU.
There is no performance fee payable for the current financial year as the Trust has not outperformed the initial
Highest DPU threshold of 6.000 cents for FY2015. In any case, the Manager opted to waive the performance fee
entitlement for FY2015 and FY2016.
The total amount of performance fee accruing to the Manager under the previous performance fee structure was
approximately $5.6 million as at 31 December 2015 and will be paid in instalments every six months in January
and July, subject to the fee cap arrangement under the Trust Deed. The full settlement of the total fee payable
is expected by January 2017.
Please see Note 1B(ii) for more details on the revised performance fee structure and Note 11 for the Manager’s
base fees payable in units.
