Growthpoint Interactive Annual Report 2018

Notes to the Financial Statements continued 2.7 Cash flow information Accounting policies Cash and cash equivalents Cash and cash equivalents comprise cash balances and call deposits with maturities of three months or less from the acquisition date that are subject to an insignificant risk of changes in their fair value, and are used by the Group in the management of its short-term commitments. Restricted cash Cash and cash equivalents includes a balance of $1,854,000 (30 June 2017: $2,215,000) in restricted cash which is being held by the Company as the custodian of the Charles Street Property Trust. These funds are not available for general use by the Group. Cash flow information 2018 2017 $’000 $’000 (a) Reconciliation of cash at end of year Cash and cash equivalents balance 31,463 31,459 (b) Reconciliation of net operating profit to net cash inflow from operating activities Net profit for the period 357,709 278,090 Distributions from investment in securities (4,886) - Fair value adjustment to investment properties (166,958) (118,157) (Profit)/ loss on sale of investment properties (24,419) 1,123 Fair value adjustment to investment in securities (10,368) - Fair value adjustment to derivatives 573 (16,161) Loss on settlement of derivatives - 13,779 Amortisation of borrowing costs 1,583 2,412 Interest received (317) (501) Depreciation 293 162 Change in operating assets and liabilities, net of effects from purchase of controlled entity: – Increase in Lease incentives and leasing costs (9,607) (7,304) – Decrease/ (Increase) in receivables 5,568 (5,141) – Increase in prepayments (1,308) (2,612) – Increase in deferred tax asset (104) (221) – Increase/ (decrease) in payables (9,363) 16,031 Net cash inflow from operating activities 138,396 161,500 Growthpoint Properties Australia 2018 Annual Report 74