Growthpoint Interactive Annual Report 2018

The Group also holds an independent credit rating to aid it accessing debt capital markets. In April 2018, Moody’s confirmed the Group’s independent credit rating of Baa2 on senior secured debt with a stable outlook. The Group maintains undrawn debt facilities to aid in capital management. As at 30 June 2018 the Group had total debt facilities of $1,523,482,000 of which $320,000,000 was undrawn at balance date. The Group monitors capital by using a number of measures, such as gearing, interest cover and loan to valuation ratio. The gearing ratio is calculated by dividing interest bearing liabilities less cash by total assets less cash. The Group has a target gearing range of 35% - 45%. At 30 June 2018, the gearing ratio was 33.9% (30 June 17: 38.5%). The gearing ratios at 30 June 2018 and 30 June 2017 were calculated as follows: 2018 2017 $’000 $’000 Total interest bearing liabilities less cash 1,166,092 1,267,921 Total assets less cash 3,444,415 3,296,913 Gearing ratio 33.9% 38.5% Nature and purpose of reserves Share-based payments reserve The share-based payments reserve comprises the transfer of the portion of the fair value of the total cost recognised under the Employee Incentive Plans in operation and is the portion of the fair value of the total cost recognised of the unissued securities, which remain conditional on employment with the Group at the relevant vesting date. Refer to Note 3.8 for more information. Deferred tax expense charged to equity This reserve comprises deferred tax balances attributable to amounts that are also recognised directly in equity. Refer to Note 4.3 for further information. Profits reserve The profits reserve comprises the transfer of net profit in the Company for the year (if any) and contains profits available for distribution as dividends in future years. There were no dividends distributed from the profits reserve during the year (2017: nil). 3.6 Distributions Period for distribution Total distribution Total stapled securities Distributions per stapled security $’000 (’000) (cents) Half year to 31 December 2017 72,789 661,716 11.00 Half year to 30 June 2018 75,643 675,384 11.20 Total distribution for FY18 148,432 22.20 Half year to 31 December 2016 67,991 641,424 10.60 Half year to 30 June 2017 72,086 661,340 10.90 Total distribution for FY17 140,077 21.50 3.5 Contributed Equity and reserves (continued) Capital risk management (continued) Growthpoint Properties Australia 2018 Annual Report 85 Financial Report Portfolio Review Financial Management Business Overview Governance Additional Information