Al-`Aqar Healthcare REIT Annual Report 2020

AL-`AQAR HEALTHCARE REIT Annual Report 2020 134 10. Investment properties (cont’d) The investment properties are stated at fair value, which have been determined based on valuations performed by an independent professional valuer. The valuation method used in determining the valuations is the investment method. The fair values of the Group’s and of the Fund’s investment properties have been arrived at on the basis of a valuation carried out by Messrs. CBRE Valuation Pty Limited (“CBRE”), Messrs. Cheston International (KL) Sdn Bhd (“Cheston”), Messrs. Knight Frank Malaysia Sdn Bhd (“Knight Frank”), and Messrs. Henry Butcher Malaysia Sdn Bhd (“Henry Butcher”), independent professional valuers not related to the Group and the Fund. Messrs. CBRE, Messrs. Cheston, Messrs. Knight Frank and Messrs. Henry Butcher are registered members of the Board of Valuers, Appraisers and Estate Agents, Malaysia, and they have appropriate qualifications and recent experience in the valuation of the properties in the relevant locations. The valuation of the Group’s and of the Fund’s investment properties were performed in accordance with the Malaysian Valuation Standards issued by the Board of Valuers, Appraisers and Estate Agents, Malaysia. There are no material events that affect the valuation between the valuation, data and financial year end. Policy on transfer between levels The fair value of an asset to be transferred between levels is determined as of the data of the event or change in circumstances that caused the transfer. Level 1 fair value Level 1 fair value is derived from quoted price (unadjusted) in active markets for identical investment properties that the entity can assess at the measurement date. Level 2 fair value Level 2 fair value is estimated using inputs other than quoted prices included within Level 1 that are observable for the investment properties, either directly or indirectly. Level 3 fair value Level 3 fair value is estimated using unobservable inputs for the investment property. Transfer between Level 1, 2 and 3 fair values There is no transfer between level 1, 2 and 3 fair values during the financial year. Fair value of investment properties is classified as Level 3. Notes to the Financial Statements For the Year Ended 31 December 2020