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ANNUAL REPORT 2023
OUR NUMBERS
12. INVESTMENT PROPERTIES (CONT’D.)
(iv) Investment properties comprise a number of commercial properties that are leased to third parties. Each of
the leases contains an initial non-cancellable period of between three (3) to five (5) years. Subsequent renewals
are negotiated with the lessee and on average renewal periods are three (3) years. The Group and the Bank
does not charge variable lease payments that do not depend on an index or rate.
(v) Other income/expenses recognised in profit or loss in relation to investment properties
Group and Bank
2023 2022
RM’000 RM’000
Lease income 524 361
Direct operating expenses
- Income generating investment properties 31 264
- Non-income generating investment properties 396 116
(vi) Fair value of investment properties are categorised as follows:
Group and Bank
Level 3 Total
RM’000 RM’000
2023
Freehold land 14,431 14,431
Building on freehold land 42,325 42,325
56,756 56,756
2022
Freehold land 14,431 14,431
Building on freehold land 42,133 42,133
56,564 56,564
(vii) Valuation processes applied for Level 3 fair value
The fair value of investment properties is determined by external, independent property valuers, having appropriate
recognised professional qualifications and recent experience in the location and category of property being valued. The
valuation company provides the fair value of the Bank’s investment property portfolio every twelve (12) months.
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