FINANCIAL INFORMATION
Assumptions In undertaking a forecast of the Trust’s ability to deliver the forecast distribution, a number of assumptions (both known and best estimate/guess assumptions) have been adopted, including: 1. The forecast Debt Facility is anticipated to represent an interest rate of 5.95% per annum for Year 1. The interest costs included in the Forecast Income and Distribution Statement accounts for an interest rate saving which relates to the anticipated short drawn amounts in the relevant periods. 2. The Trust Debt Facilities generally have terms between two and three years and therefore returns and distributions from Year 3 or 4 will be subject to successfully refinancing the Debt Facilties at the conclusion of the Debt Facility's term or before and the cost of that refinance. The Manager's interest rate assumptions and rationale are further detailed overleaf. 3. The Trust does not raise any additional equity during the investment horizon. 4. Two leases expire within the 5-year Forecast Income and Distribution Statement period. The forecast assumes that the existing tenant(s) renews their lease, or that a new tenant will occupy the tenancy upon the expiry of the lease(s). 5. The Forecast Income and Distribution Statement reflects the Trust Management Fee and Trust Expenses for Year 1 being paid from Working Capital. This allocation is reflected in the Application of Funds in Section 4 . 6. Other assumptions (among other things) in relation to leasing activity and rental income. Failure to realise forecast rental income could result in a reduction to the distributions available to Investors. The Manager does not give any assurance or guarantee that the Trust will achieve its target return on equity or distributions. For further information on the risks which may impact on the ability for the Trust to deliver the target distributions and the performance of an investment in the Trust generally, please see Section 7 .
QUANTA TENNYSON STREET OFFICE TRUST | Information Memorandum
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