4 Buckets of Time (4BOT)

Though material, since this happened after 31 Dec 19, it was not factored into the actual financial statement numbers. Instead, Capitaland disclosed this in its notes, together with other material events, as seen in the screenshot below.

After issuance of the financials (but before today), Capitaland announced on 15 Apr 20 that it secured S$400M in two bilateral green loans. The availability of this additional debt facility is considered under Bucket 2B.

Bucket 3- Between now and next 12 months (next review date)

Bucket 3 is where we begin to look toward the future. While we unfortunately do not have a crystal ball, we can use information we have from Buckets 1 and 2 (including information obtained outside of the financials) to project into Bucket (and 4).

Current Assets that are not expected to be converted to cash, and Current Liabilities not expected to be repaid during Bucket 3, may draw our attention as in substance they rank lower on the cash conversion continuum (for assets)/ repayment continuum (for liabilities).

In audited financial statements, companies may disclose the minimum amounts of certain commitments that they expect to have to honour over Bucket 3 (and Bucket 4).

In the case of Capitaland, Bucket 3 would include, for e.g. the impact of COVID-19 on occupancies across its properties, potential defaults of its existing tenants during the remainder of 2020, any additional government support the company may expect to receive etc.

Bucket 4- Beyond next 12 months

This bucket considers the time even further into the future, for which we have even less certainty.

In conclusion, splitting our perspective of time into the 4 Buckets of Time, helps us to identify material events, and consider whether or not they have been considered as part of the information used in our analysis. This helps encourage a thorough and complete analysis.