Al-`Aqar Healthcare REIT Annual Report 2019

06 FINANCIAL STATEMENT 162 As at 31 December 2019, the Group and the Fund had complied with all financial covenants as disclosed in Note 17. The SC Guidelines require that the total borrowings of a fund (including borrowings through issuance of debt securities) should not exceed 50% of the total asset value of the Fund at the time the borrowings are incurred. Notwithstanding, the Fund’s total borrowings may exceed this limit with the sanction of the unitholders by way of an ordinary resolution. The Manager’s risk management committee reviews the capital structure of the Group and of the Fund on a regular basis to ensure that the SC Guidelines are complied with. Gearing ratios The Group’s and the Fund’s gearing ratio are calculated based on the proportion of total borrowings to the total asset value. The gearing ratio at the end of the reporting period is as follow: The Group The Fund 2019 2018 2019 2018 RM RM RM RM Total borrowings 683,435,584 603,705,130 664,714,243 585,685,696 Total assets value 1,674,351,935 1,580,468,414 1,650,198,629 1,551,718,035 Total borrowings to total assets value ratio 40.82% 38.20% 40.28% 37.74% 26. PORTFOLIO TURNOVER RATIO (“PTR”) The Fund 2019 2018 PTR (times) 0.08 - The calculation of PTR is based on the average of total acquisitions and total disposals of investments in the Fund for the year to the average net asset value during the year calculated on a monthly basis. 27. SIGNIFICANT EVENT On 26 August 2019, Al-‘Aqar Healthcare REIT as represented by its trustee, AmanahRaya Trustees Berhad, entered into a conditional sales and purchase agreement with Johor Land Berhad, a wholly-owned subsidiary of Johor Corporation to acquire KPJ Batu Pahat Specialist Hospital, for a total cash consideration of RM78 million. The acquisition was on completed on 28 December 2019. Notes To The Financial Statements For The Financial Year Ended 31 December 2019 (Continued) 25. CAPITAL MANAGEMENT (CONTINUED)