Notes to the financial statements Year ended 31 December 2024 4. INVESTMENT PROPERTIES (continued) Measurement of fair value (continued) The fair value measurement for all of the investment properties has been categorised as a Level 3 fair value based on the inputs to the valuation technique used. 2024 2023 $’000 $’000 Fair value of investment properties (based on valuation reports) 4,443,931 4,543,213 Carrying amount of investment properties 4,443,931 4,543,213 The valuers have considered valuation techniques including the capitalisation and discounted cash flows approaches in arriving at the open market value as at the reporting date. The capitalisation approach is an investment approach whereby the estimated gross passing income (on both passing and market rent bases) is adjusted to reflect anticipated operating costs to produce a net income on a fully leased basis. The adopted fully leased net income is capitalised over the remaining term of the lease from the valuation date at an appropriate capitalisation rate. The discounted cash flow method involves the estimation and projection of an income stream over a period and discounting the income stream with risk adjusted discount rates to arrive at the market value. Fair value of the investment properties were based on independent professional full valuations carried out by the following valuers on the dates stated below: Valuers Valuation Date Valuation Date Colliers Appraisal & Advisory Services Co., Ltd. 31 December 2024 – CBRE (Shanghai) Management Limited – 31 December 2023 Cushman & Wakefield International Property Advisers (Shanghai) Co., Ltd. 31 December 2024 31 December 2023 Jones Lang LaSalle Corporate Appraisal and Advisory Limited 31 December 2024 31 December 2023 Investment properties comprise retail, business parks and logistics parks properties that are held mainly for use by tenants under operating leases. Most leases contain an initial non-cancellable period of within 1 to 3 years (2023: within 1 to 3 years). See Note 13 for further information. Contingent rents, representing income based on certain sales achieved by tenants, recognised in the statement of total return during the year amounted to $6.6 million (2023: $6.9 million). 119 Annual Report 2024
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