SDOT2 Financial Report 30 June 2008 - Stockland

More documents

Recommendations

Info

Directors’ Report (continued) For the year ended 30 June 2007 2 // Directors (continued) Terry Williamson (Non-Executive) Appointed 2 July 2004 Mr Williamson is a director of Stockland, Avant Insurance Limited and ING Australia Limited and a member of the University of Sydney Faculty of Economics and Business Studies Advisory Board. Mr Williamson was previously Chief Financial Officer of Bankers Trust Australia Limited / BT Financial Group Pty Limited from 1997 to 2002 and prior to that, he was a partner of Price Waterhouse for 17 years. He is a member of both the Stockland Trust Management Limited and Stockland Funds Management Limited Compliance Committee. Mr Williamson is Chair of the Stockland and Stockland Funds Management Limited Audit and Risk Committees. Matthew Quinn (Executive) – Managing Director - Stockland Appointed 19 October 2000 Mr Quinn has an extensive background in commercial, retail, industrial and residential property investment and development. He began his career in the United Kingdom as a chartered accountant and moved to Australia in 1987 with Price Waterhouse. In 1988, he joined the Rockingham Park Group, a substantial Western Australian private property group. Mr Quinn joined Stockland in 1999 and was appointed to his current role of Managing Director in October 2000. Mr Quinn held the position of National President of the Property Council of Australia from March 2003 until March 2005. He is a Fellow of the Australian Property Institute. He was appointed Director of Australian Business and Community Network Limited in October 2006. SFML Compliance Committee A Compliance Committee has been set up to oversee the Compliance Plan approved by the Responsible Entity for the Trust. The members of the Compliance Committee during or since the end of the financial period were: Ms. L. Gearing (Chair) – Non-Executive Director Mr. A. Sherlock – Independent Non-Executive Director Mr. T. Williamson – Non-Executive Director The role of the committee includes evaluation of the effectiveness of the Responsible Entity’s compliance systems designed to protect the interests of unitholders. The Compliance Plan has been approved by ASIC. The committee meets regularly and must report breaches of the law and Constitution to the SFML Board which is required to report any material breach of the Compliance Plan to ASIC. SFML Audit and Risk Committee The Audit and Risk Committee has been set up to make appropriate recommendations to the Board and to determine any matters delegated to it by the Board, either specifically or under its charter. The primary objective of the committee is to assist the Board of SFML in discharging its responsibilities for: • financial reporting and audit practices; • accounting policies; • the management of risk; and • the adequacy and effectiveness of internal controls. Audit and Risk Committee meetings are to be held at least quarterly and guests are invited to attend such as executive management staff, external and internal auditors and advisors. The committee meets privately with the external auditor in the absence of management at least once a year. The committee has the power to conduct or authorise investigations into, or consult independent specialists on, any matters within the committee’s scope of responsibility. The committee has a written charter which incorporates best practice. Under its charter, the committee must be comprised of at least three or more directors, all of whom must be nonexecutive directors. The Chairman of the committee may not also be the Chairman of the SFML Board. The members of the Audit and Risk Committee during or since the end of the financial period were: Mr T Williamson (Chair) – Non-Executive Director Mr A Sherlock – Independent Non-Executive Director Ms L Gearing – Non-Executive Director The committee assists the Board to fulfil its corporate governance and disclosure responsibilities in relation to financial reporting, internal controls, risk management systems and both internal and external audits. Principal activities The principal activity of the Trust is the ownership of property situated at 1-5 Lyon Park Road, Macquarie Park, New South Wales via its investment of 49% in Macquarie Park Trust (“MPT”). Review of operations The Trust achieved a profit from operating activities of $29,025,000 for the financial year ended 30 June 2007 (30 June 2006: $1,150,000). An upwards revaluation totalling $28,599,000 was recognised in the Trust’s Income Statement through the recognition of the Trust’s share of net profits of the joint venture. During the year an independent valuation was performed with the result of the Macquarie Park Property being revalued at $410,000,000 (100% basis). Distributions paid or declared by the Trust to unitholders during the financial year are set out in Note 18 of the Financial Statements. On 15 June 2007, the Trust acquired a 49% interest in MPT. Significant changes in the state of affairs Apart from the matters discussed in the Review of operations, there have been no significant changes in the state of the affairs of the Trust during the year. Stockland Direct Office Trust No.2 June 2007
Directors’ Report (continued) For the year ended 30 June 2007 Events subsequent to the end of the year There have been no events subsequent to the balance date which would have a material effect on the Trust’s Financial Statements at 30 June 2007. Likely developments The Trust will continue to review investment strategies with a view to optimising both the income and capital return over the investment term. Environmental regulation The Trust’s operations are subject to various environmental regulation under both Commonwealth and State legislation. The Responsible Entity believes that the Trust has adequate systems in place for the management of its environmental responsibilities and is not aware of any breach of environmental requirements as they may apply to the Trust. Related parties Stockland Trust Management Limited as Responsible Entity of Stockland Trust, a related party of the Responsible Entity, holds 5,247,050 instalment receipts as at 30 June 2007 (2006: 5,247,050 instalment receipts). Interests of the Responsible Entity The Responsible Entity has not held any units in the Trust either directly or indirectly during the financial year. a portion of the annual fees each year. The Responsible Entity is entitled to recover all fees deferred either from Trust earnings or on wind up of the Trust. The Responsible Entity charges are set out in Note 21 of the Financial Report. Directors’ interests The relevant interest of each director of the Responsible Entity holding instalment receipts in the Trust at the date of this report is as follows: Director Number of instalment receipts held Mr David Kent 425,000 Mr Matthew Quinn 25,000 Mr Peter Scott 25,000 Mr Terry Williamson 100,000 Indemnities and insurance of officers and auditors Indemnification Under the Trust Constitution, the Responsible Entity, including its officers and employees, is indemnified out of the Trust’s assets for any loss, damage, expense or other liability incurred by it in properly performing or exercising any of its powers, duties or rights in relation to the Trust. The Trust has not indemnified or made a relevant agreement for indemnifying against a liability in respect of any person who is the auditor of the Trust. against certain liabilities (subject to specified exclusions) for persons who are or have been directors and officers of the Responsible Entity. In addition, the Responsible Entity has paid insurance premiums for professional indemnity insurance policies to cover certain risks for the Directors. Details of the nature and the amount of the liabilities covered or the amount of the premium paid has not been included as such disclosure is prohibited under the terms of the insurance contracts. Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 The external auditor’s independence declaration is set out on page 4 and forms part of the Directors’ Report for the year ended 30 June 2007. Rounding The Trust is an entity of the kind referred to in ASIC Class Order 98/100 (as amended) and in accordance with that Class Order, amounts in the Financial Report and Directors’ Report have been rounded to the nearest thousand dollars, unless otherwise stated. Signed in accordance with a resolution of the Directors: // 3 Responsible Entity’s remuneration The Responsible Entity charged a responsible entity fee of 0.45% p.a. of the gross assets of the Trust, calculated monthly. The Responsible Entity may defer Insurance premiums The Responsible Entity has paid insurance premiums in respect of directors’ and officers’ liability insurance contracts for the Directors. Such insurance contracts insure Matthew Quinn Director Dated at Sydney, 16 August 2007 Stockland Direct Office Trust No.2 June 2007
Page 1 and 2: 2007 Stockland Direct Office Trust
Page 3: Directors’ report— —for the y
Page 7 and 8: 2007 2006 Notes $’000 $’000 Rev
Page 9 and 10: Unitholders’ Funds Units on Issue
Page 11 and 12: 1 Summary of significant accounting
Page 13 and 14: 1 Summary of significant accounting
Page 15 and 16: 4 Interest income 2007 2006 $’000
Page 17 and 18: 10 Non-current assets - Trade and o
Page 19 and 20: 16 Units on issue classified as deb
Page 21 and 22: 20 Financial instruments (continued
Page 23 and 24: 21 Related parties Stockland Funds
Page 25 and 26: In the opinion of the Directors of
Page 28: Responsible Entity Stockland Funds

SDOT2 Financial Report 30 June 2008 - Stockland

Create successful ePaper yourself

Delete template?

Save as template?