NOTES TO THE FINANCIAL STATEMENTS
14 Property expenses
Group and Trust
2014
2013
$’000
$’000
Land rental
5,629
4,595
Property and lease management fees
3,955
3,349
Property tax
4,443
3,694
Repair and maintenance expenses
3,995
2,585
Other property operating expenses
3,512
1,853
21,534
16,076
15 Management fees and performance fees
Group and Trust
2014
2013
$’000
$’000
Management fees
– Management fees paid and payable in cash
4,210
6,454
– Management fees paid and payable in units
2,358
–
6,568
6,454
Performance fees
– Performance fees paid and payable in cash
1,684
13,869
8,252
20,323
For the six month period ended 30 June 2014, CIT’s Trust Index exceeded the total return of the Cambridge
Benchmark Index, resulting in the Manager having an entitlement to performance fees of approximately $1.7 million.
For the six month period ended 30 June 2013, CIT’s Trust Index exceeded the total return of the Cambridge
Benchmark Index, resulting in the Manager having an entitlement to performance fees of approximately $27.7
million. The Manager has voluntarily and irrevocably elected a one off waiver to reduce the performance fee
for the half year to approximately $13.9 million, being 50% of the Manager’s entitlement under the Trust Deed.
On 17 April 2014, the Manager unilaterally reduced the Tier 2 performance fee rate from 15% to 5%. Further
details of the performance fee are disclosed in Note 1 (B)(ii).
The payment for the total of the management fees and performance fees are capped at 0.8% of the Trust’s total
deposited property value per financial year under the Trust Deed. The amount of performance fees in excess of
the fee cap has been carried forward for payment in the future half year periods.
There was no performance fee payable for the six month period ended 31 December 2014 and 31 December 2013,
respectively.
CAMBRIDGE INDUSTRIAL TRUST | ANNUAL REPORT 2014
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