Integrated Annual Report 2024 SECTION 6 • FINANCIAL STATEMENTS 261 Notes to the Financial Statements 5. INVESTMENT PROPERTIES (CONT’D) Group 2024 RM’000 2023 RM’000 Included in the above are: Land leased 30,846 33,520 Buildings 16,026 15,661 46,872 49,181 Investment properties comprise land and a number of residential properties and commercial properties that are leased to third parties or are currently vacant. Investment properties of the Group amounting to RM4,853,000 (2023: RM4,967,000) have been charged to secure banking facilities granted to the Group (see Note 16). The following are recognised in profit or loss in respect of investment properties: Group 2024 RM’000 2023 RM’000 Lease income 3,175 2,262 Direct operating expenses: - income generating investment properties (1,565) (1,552) - non-income generating investment properties (502) (406) Fair value information Fair value of investment properties is categorised as follows: Group 2024 RM’000 2023 RM’000 Level 3 Land 56,403 104,460 Buildings 20,976 20,616 77,379 125,076 Valuation process applied by the Group for Level 3 fair value The fair value of investment properties is estimated by the Directors using the comparison method. The comparison method entails critical analyses of recent evidences of values of comparable properties in the neighbourhood and making adjustment for differences such as differences in location, size and shape of land, age and condition of building, tenure, title restrictions, if any, and other relevant characteristics. 5.1 Material accounting policy information Investment properties are initially and subsequently measured at cost and are accounted for similarly to property, plant and equipment.
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