CapitaLand Integrated Commercial Trust - Annual Report 2021

Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2021 5 INVESTMENT PROPERTIES Group Trust 2021 2020 2021 2020 $’000 $’000 $’000 $’000 At 1 January 21,366,075 10,415,843 8,028,300 8,203,845 Acquisition of subsidiary (Note 32) – 11,309,546 – – Capital expenditure 86,050 45,877 25,211 28,494 Net change in fair value of investment properties 270,507 (393,620) 39,432 (204,039) Reclassification to asset held for sale (278,000) – (278,000) – Straight-lining of rental adjustments 20,911 (1,024) – – Translation difference (34,472) (10,547) – – At 31 December 21,431,071 21,366,075 7,814,943 8,028,300 Security As at 31 December 2021, the Group’s investment properties with a total carrying amount of $941.5 million (2020: $996.5 million) were pledged as security to banks to secure bank facilities (refer to Note 15). As at 31 December 2021 and 2020, all investment properties, including investment property reclassified as asset held for sale, held by the Trust are unencumbered. Fair value hierarchy The fair value of investment properties, including investment property reclassified as asset held for sale, was determined by external, independent property valuers, having appropriate recognised professional qualifications and recent experience in the location and category of the properties being valued. External valuation of the investment properties is conducted at least once a year. The fair value measurement for investment properties, including investment property reclassified as asset held for sale, for the Group and Trust have been categorised as Level 3 fair values based on the inputs to the valuation techniques used. Group Trust 2021 2020 2021 2020 $’000 $’000 $’000 $’000 Fair value of investment properties (based on valuation reports) 21,422,689 21,357,034 7,808,300 8,019,500 Add: Right-of-use asset classified within investment properties 158 350 158 350 Add: Carrying amount of lease liabilities 8,224 8,691 6,485 8,450 Carrying amount of investment properties 21,431,071 21,366,075 7,814,943 8,028,300 Annual Report 2021 251