Notes to the Financial Statements For the financial year ended 31 December 2024 5 INVESTMENT PROPERTIES (continued) (b) The Group’s investment properties are classified under Level 3 in the fair value hierarchy. (c) As at 31 December 2024, investment properties valued at $255 million (2023: $611 million) were under development. (d) As at 31 December 2024, certain investment properties with carrying values of approximately $2,985 million (2023: $7,008 million) were mortgaged to banks to secure credit facilities (notes 16 and 17). (e) Investment properties of the Group are held mainly for use by tenants under operating leases. Minimum lease payments receivable under non-cancellable operating leases of investment properties and not recognised in the financial statements are as follows: 2024 2023 $’M $’M Lease rentals receivable: Less than 1 year 212 319 Between 1 and 5 years 282 455 More than 5 years 91 255 585 1,029 (f) Contingent rents, representing income based on sales turnover achieved by tenants, amounted to $13 million for the year ended 31 December 2024 (2023: $13 million). (g) As at 31 December 2024, the right-of-use of the land and buildings that are classified within investment properties had a carrying amount of $40 million (2023: $303 million). (h) As at 31 December 2024, the investment properties that are freehold and leasehold were valued at $1,955 million (2023: $7,577 million) and $3,040 million (2023: $5,995 million) respectively. 122 CapitaLand Investment Limited Notes to the Financial Statements For the financial year ended 31 December 2024 6 SUBSIDIARIES The Company Note 2024 2023 $’M $’M (a) Unquoted shares, at cost 6,915 6,920 Less: Allowance for impairment loss (ii) (445) (277) 6,470 6,643 Add: Amounts due from subsidiaries, at amortised cost: Loan accounts – interest free (i) 3,877 4,303 10,347 10,946 (i) Loans due from subsidiaries are unsecured and not expected to be repaid within the next twelve months. (ii) Movements in allowance for impairment loss were as follows: The Company 2024 2023 $’M $’M At 1 January (277) (45) Allowance (168) (232) At 31 December (445) (277) During the year, the Company conducted a review of the recoverable amount of its investment in subsidiaries and recognised an impairment loss of $168 million (2023: $232 million) in respect of its investment in subsidiaries. The impairment loss for the year primarily relates to a subsidiary, whose underlying investments in China have experienced a decline in value due to the ongoing economic challenges. In 2023, the impairment allowance was related to a subsidiary whose net assets decreased considerably, following dividend payments to the Company, in preparation for its liquidation. (iii) The recoverable amounts of the relevant subsidiaries were estimated based on the net assets of the subsidiaries as at the reporting date and approximates their fair values. The fair value measurement is categorised as Level 3 in the fair value hierarchy. (iv) The Company’s exposure to credit risk on the amounts due from subsidiaries is disclosed in note 32. 123 Annual Report 2024
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