NOTES TO THE FINANCIAL STATEMENTS For the Financial Year Ended 31 December 2025 (cont’d) 4. INVESTMENT PROPERTIES (CONT’D) Leasehold buildings RM’000 Company (cont’d) Carrying amount At 31 December 2025 147,966 At 31 December 2024 151,491 (a) The investment properties of the Group and of the Company are leased to customers under operating leases with monthly rental payments. The leases contain initial non-cancellable periods ranging from 1 to 3 years. As at the reporting date, the future minimum rental receivable under the non-cancellable operating leases are as follows: Group Company 2025 2024 2025 2024 RM’000 RM’000 RM’000 RM’000 Within 1 year 2,242 3,462 5,785 7,340 Between 1 and 2 years 1,076 2,449 2,242 6,531 Between 2 and 3 years 367 - 1,372 363 3,685 5,911 9,399 14,234 (b) Certain investment properties have been pledged to licensed banks as security for banking facilities granted to the Group and to the Company as disclosed in Note 25 to the financial statements. (c) Fair value measurement The fair value of the investment properties of the Group and of the Company were estimated by Directors based on recent transacted prices in the market of properties with similar condition and location. In estimating the fair value of the investment properties, the highest and best use of the investment properties is their current use. The fair value is within level 3 of the fair value of hierarchy. Fair value measurement of the investment properties were categorised as follows: Group Company 2025 2024 2025 2024 RM’000 RM’000 RM’000 RM’000 Leasehold buildings 42,873 50,853 171,811 208,009 (d) Investment properties of the Company comprise buildings that are leased to companies within the Group to earn rental income. They are accounted for as property, plant and equipment at the Group. (e) The strata title deed of building of the Group and of the Company amounting to RM32,826,000 and RM147,966,000 (2024: RM33,882,000 and RM151,491,000) are yet to be issued by relevant authorities. 224
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