Growthpoint Interactive Annual Report 2018

Notes to the Financial Statements continued 3.5 Contributed Equity and reserves Accounting policies Share capital Stapled securities are classified as equity. Incremental costs directly attributable to the issue of stapled securities are recognised as a deduction from equity, net of any tax effects. Distributions and dividends Provision is made for the amount of any distribution or dividend declared, determined or publicly recommended by the Directors on or before the end of the period but not distributed at the balance sheet date. Contributed Equity Contributed equity can be analysed as follows: 2018 2018 2017 2017 No. (‘000) $’000 No. (‘000) $’000 Opening balance at 1 July 661,341 1,653,735 583,126 1,414,012 Issue of ordinary stapled securities during the year: Securities issued on acquisition of assets - - 44,380 139,808 Distribution reinvestment plans 13,668 44,967 33,528 105,928 Securities issued through Employee Incentive Plans 376 - 307 - Costs of raising capital - - - (6,013) 14,044 44,967 78,215 239,723 Closing balance at 30 June 675,385 1,698,702 661,341 1,653,735 Ordinary stapled securities Ordinary stapled securities entitle the holder to participate in dividends and distributions and the proceeds on winding up of the Group in proportion to the number of and the amounts paid on the stapled securities held. On a show of hands every holder of ordinary stapled securities present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each unit is entitled to one vote. Distribution reinvestment plan The Distribution Reinvestment Plan is operative for the 31 December 2017 and 30 June 2018 distributions of the Group. Capital risk management The Group’s objective when managing capital is to safeguard its ability to continue as a going concern, so that the Group can continue to provide returns for Securityholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends and distributions paid to Securityholders, return capital to Securityholders, vary the level of borrowings, issue new securities or sell assets. During the year, the Group implemented several capital management initiatives, namely: t t The Distribution Reinvestment Plan was in operation for the 31 December 2017 distribution, raising a total of $44,967,000 for the issue of 13,667,999 new stapled securities. t t In April 2018, the Group extended two tranches of bank debt with a facility limit of $315,000,000 by two years to 31 December 2021. t t In June 2018, the Group extended a tranche of bank debt with a facility limit of $100,000,000 by four years to 31 March 2023. t t In June 2018, the Group increased a tranche of bank debt by $50,000,000 to a facility limit of $150,000,000. It also extended the maturity date by 4 years to 30 June 2023. t t The Distribution Reinvestment Plan was in operation for the 30 June 2018 distribution. Growthpoint Properties Australia 2018 Annual Report 84