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Investor Relations
Interest Rate Hedging Profile
Gearing The responsible entity has established a preferred range of 20 to 40 per cent for the Trust's gearing ratio (debt to total assets). The quality of the Trust's lease covenants and the lease expiry profile support this gearing range and allow the effective use of debt funding. At 30 June 2008, the Trust's gearing was 31.5 per cent. Interest Rate Management The Trust has a policy of hedging the majority of its borrowings against interest rate movements to ensure stability of distributions. The responsible entity continues to actively manage the Trust's exposure to interest rates to ensure a prudent interest rate hedging position. This involved taking out additional cover as required during the year and managing debt repayment to ensure existing hedging remained effective At 30 June 2008, 77.0 per cent of the Trust's interest bearing debt was hedged at a weighted average rate excluding margins of 6.21 per cent, and the weighted average term to maturity of the hedged debt (including delayed start swaps) was 2.4 years. |
