Common use of Gearing Clause in Contracts

Gearing. Without the prior written approval of the Board, the debt to capital ratio (calculated by reference to current market values) of a Non- New Zealand Portfolio Entity shall not exceed 55%. If it is proposed that the ratio be higher than 55%, the Manager shall provide the Company with a study demonstrating that there is a net benefit to it in the higher gearing. This study shall have specific regard to the relevant asset, the greater financial risks that flow from increased gearing and the higher expected returns to equity.53

Gearing. Without the prior written approval of the Board, the debt to capital ratio (calculated by reference to current market values) of a Non- New Zealand Portfolio Entity shall not exceed 55%. If it is proposed that the ratio be higher than 55%, the Manager shall provide the Company with a study demonstrating that there is a net benefit to it in the higher gearing. This study shall have specific regard to the relevant asset, the greater financial risks that flow from increased gearing and the higher expected returns to equity.53equity.5357

Gearing. Without the prior written approval of the Board, the debt to capital ratio (calculated by reference to current market values) of a Non- New Zealand Portfolio Entity shall not exceed 55%. If it is proposed that the ratio be higher than 55%, the Manager shall provide the Company with a study demonstrating that there is a net benefit to it in the higher gearing. This study shall have specific regard to the relevant asset, the greater financial risks that flow from increased gearing and the higher expected returns to equity.53equity.57