4 INVESTMENT PROPERTIES (CONTINUED)
Fair value hierarchy
The tables below analyses investment properties carried at fair value. The different levels have been
defined as follows:
• Level 1: quoted prices (unadjusted) in active markets for identical investment properties that the
Group can access at the measurement date.
• Level 2: inputs other than quoted prices included within Level 1 that are observable for the
investment properties, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
• Level 3: unobservable inputs for the investment properties.
Level 3
Total
$’000
$’000
Group and Trust
2014
Investment properties
1,260,053
1,260,053
2013
Investment properties
1,211,430
1,211,430
During the year ended 31 December 2014 and 31 December 2013, there were no transfers from
Level 1, Level 2 or Level 3, or vice versa.
The following table shows the key unobservable inputs used in the valuation models for
investment properties:
Type
Key unobservable inputs
Inter-relationship between key
unobservable inputs and fair
value measurement
Industrial properties for leasing
where prices for comparable
buildings are not available
• Discount Rates (from 6.75%
to 8.25% (2013: 8.25%))
• Capitalisation rates (from
5.50% to 7.00% (2013:
6.15% to 7.50%))
The estimated fair value of
investment properties would
increase if the Discount Rates
and capitalisation rates were
lower.
Year ended 31 December 2014
NOTES TO THE FINANCIAL STATEMENTS
SABANA REIT
|
ANNUAL REPORT 2014
114
