LIPPO-MAPLETREE - Lippo Malls Indonesia Retail Trust - Investor ...

DistributionsSingapore SPCs level and LMIR Trust level:Distributable Income is derived from consolidated net profit from operations by making the followingadjustments:a) Deducting fees payable to the Manager, general and administrative expenses, other trust expenses,hedging costs and expenses and taxes (if any), at the Singapore SPCs and LMIR Trust level;b) Adding any income from external parties received by the Singapore SPCs and LMIR Trust (forexample, interest income on placement of cash balances with banks);c) Deducting unrealised income, gains from the disposal of shares and properties and adding backunrealised expenses (unrealised income and expenses include unrealised exchange differencesand accretion and fair value adjustments relating to financial instruments and real properties);d) Adding back trust expenses (for example, the portion of the Manager’s management fees) paid inunits (as these are non-cash items); ande) Adding back non-recurring expenses (as deemed appropriate by the Manager).After LMIR Trust has been admitted to the Main Board of the SGX-ST, LMIR Trust will make distributions toUnitholders on a quarterly basis, with the amount calculated as at 31 March, 30 June, 30 September and31 December each year for the three-month period ending on each of the said dates. However, LMIRTrust’s first distribution after the Listing Date will be for the period from the Listing Date to 31 March 2008and will be paid by the Manager on or before 30 May 2008. Subsequent distributions will take place on aquarterly basis.In the event that there are gains arising from sales of real properties either directly or indirectly through thesales of the shares in the Indonesian SPCs or the Singapore SPCs, and only if such gains are surplus tothe business requirements and needs of LMIR Trust and its taxability or otherwise confirmed by the IRASin the event that the gains arise from the sale of shares in the Singapore SPCs or from the sale of shares inthe Indonesian SPCs by the Singapore SPCs, the Manager may, at its discretion, direct the Trustee todistribute such gains. Such gains, if not distributed, will form part of the Deposited Property.LMIR Trust’s primary source of liquidity to fund distributions, payment of non-property expenses and otherrecurring capital expenditure will be from the receipts of Gross Revenue and any future borrowings.Under the Property Funds Guidelines, if the Manager declares a distribution that is in excess of profits, theManager should certify, in consultation with the Trustee, that it is satisfied on reasonable grounds that,immediately after making the distribution, LMIR Trust will be able to fulfil, from the Deposited Property, theliabilities of LMIR Trust as they fall due. The certification by the Manager should include a description of thedistribution policy and the measures and assumptions for deriving the amount available to be distributedfrom the deposited property of the property fund. The certification should be made at the time thedistribution is declared.92