EC World REIT - Annual Report 2016

115

EC World Real Estate Investment Trust ANNUAL REPORT 2016

NOTES TO THE

Financial Statements

For the Financial Year ended 31 December 2016

25. Related party transactions

For the purpose of these financial statements, parties are considered to be related to the Group when the Group

has the ability, directly or indirectly to control the party or exercise significant influence over the party in making

financial and operating decisions, or vice versa, or where the Group and the party are subjected to common

significant influence. The Manager and the Property Manager are indirect wholly-owned subsidiaries of Forchn

Holdings Group Co., Ltd..

In addition to the information disclosed elsewhere in the financial statements, the following transactions took

place between the Group and related parties at terms agreed between the parties:

Group

2016

2015

S$’000

Property management fees paid/payable

540

–

Trustee’s fees paid/payable

121

–

Manager’s base fees paid/payable

1,911

–

Warehouse management fees expenses

1,715

–

Rental and other related income received/receivable from related parties

(69,413)

(28,479)

Outstanding balances at 31 December 2016, arising from sale/purchase of goods and services, are unsecured and

receivable/payable within 12 months from the reporting date and are disclosed in Notes 11 and 17 respectively.

26. Financial ratios

Group

2016

2015

Ratio of expenses to weighted average net assets

– including and excluding performance component of Manager's fees

0.39

0.03

Portfolio turnover rate

–

42.00

1 The annualised ratios are computed in accordance with the guidelines of Investment Management Association of Singapore dated 25 May

2005. The expenses used in the computation relate to expenses of the Group, excluding property expenses, borrowing costs and income tax

expense.

2 In accordance with the formulae stated in the CIS, the ratio reflects the number of times per year that a dollar of assets is reinvested. The

annualised ratio is computed based on the lesser of purchases or sales of underlying investment properties of the Group expressed as a

percentage of daily average net asset value.