Al-`Aqar Healthcare REIT Annual Report 2020

Financial Reports 129 3. Significant accounting judgements and estimates (cont’d) 3.2 Key sources of estimation uncertainty The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below: (a) Fair value of investment properties The Group and the Fund carry their investment properties at fair value, with changes in fair values being recognised in profit or loss. The Group and the Fund had engaged independent professional valuers to determine the fair value and there are no material events that affect the valuation between the valuation date and financial year end. The determined fair value of the investment properties by the independent professional valuers is most sensitive to the yield rate and discount rate. The range of the yield rate and the discount rate used in the valuation is disclosed in Note 10. The following table demonstrates the sensitivity of the fair value measurement to changes in estimated term yield rate, discount rate and its corresponding sensitivity result in a higher or lower fair value measurement: Fair Value Fair Value Increase/(decrease) Increase/(decrease) Group Fund 2020 2019 2020 2019 RM RM RM RM Yield rate - 0.25% 49,760,000 38,398,000 48,610,000 41,500,000 + 0.25% (46,310,000) (35,998,000) (45,260,000) 39,100,000 Discount rate - 0.25% 10,250,000 9,300,000 9,100,000 9,300,000 + 0.25% (9,460,000) (10,000,000) (8,410,000) (10,000,000) 4. Revenue Revenue from contract with customers comprises the following: Group Fund 2020 2019 2020 2019 RM RM RM RM Rental income Base rental income 112,866,478 106,110,287 101,074,410 94,587,596 Unbilled rental income 2,843,801 - 2,843,801 - 115,710,279 106,110,287 103,918,211 94,587,596 Rental income from KPJ Ampang Puteri Specialist Hospital 10,144,554 9,945,641 10,144,554 9,945,641 KPJ Tawakkal Specialist Hospital 9,215,736 8,864,208 9,215,736 8,864,208 KPJ Damansara Specialist Hospital 8,914,911 8,740,109 8,914,911 8,740,109 KPJ Johor Specialist Hospital 8,690,400 8,520,000 8,690,400 8,520,000 KPJ Klang Specialist Hospital 7,426,178 7,280,567 7,426,178 7,280,567 KPJ Ipoh Specialist Hospital 5,511,162 5,403,100 5,511,162 5,403,100 Notes to the Financial Statements For the Year Ended 31 December 2020

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