NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2023 6 SUBSIDIARIES Trust 2023 2022 $’000 $’000 Unquoted equity investments, at cost 8,023,140 8,006,374 Less: Allowance for impairment loss (257,392) (155,361) 7,765,748 7,851,013 Loans to subsidiaries – Interest-bearing 3,810,182 3,310,827 – Non-interest-bearing 471,903 471,903 4,282,085 3,782,730 Less: Allowance for impairment loss (1,038) (5,220) 4,281,047 3,777,510 12,046,795 11,628,523 During the financial year ended 31 December 2022, the Trust invested approximately $603 million and $434 million into CICT AU Trust and 79RR Office Trust respectively. Loans to subsidiaries are unsecured and are not expected to be repaid in the next twelve months from the reporting date. The interest-bearing loans bear interest rates of 1.59% to 5.00% (2022: 0.99% to 5.00%) per annum. Interest rates are determined by the Trust from time to time. In 2023, allowance for impairment loss amounting to $113,292,000 (2022: $113,518,000) and a reversal of impairment loss amounting to $11,261,000 (2022: $1,662,000) were recognised in respect of the Trust’s investment in subsidiaries, taking into consideration the fair value of the underlying properties held by the subsidiaries. The recoverable amounts were assessed based on fair value less costs to sell estimated using the revalued net assets of the subsidiaries and categorised as level 3 on the fair value hierarchy. The movements in the allowance for impairment loss in unquoted equity investments, at cost, are as follows: Trust 2023 2022 $’000 $’000 At the beginning of the year 155,361 43,505 Impairment loss recognised 113,292 113,518 Reversal of impairment loss (11,261) (1,662) At the end of the year 257,392 155,361 The movements in the allowance for impairment loss in loans to subsidiaries are as follows: Trust 2023 2022 $’000 $’000 At the beginning of the year 5,220 8,957 Reversal of impairment loss (4,182) (3,737) At the end of the year 1,038 5,220 ANNUAL REPORT 2023 211 Other Information Overview Leadership Performance Framework
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