Annual Report 2025 195 Notes to the Financial Statements 31 December 2025 Valuation technique Key unobservable inputs Inter–relationship between key unobservable inputs and fair value measurements Group R esidual Land Value Method Singapore • Gross development costs (psm): $2,533 to $5,924 (2024: $2,612 to $5,347) UK/Europe • Gross development costs (psm): $2,333 to $3,422 (2024: Not applicable) The estimated fair value would increase if the gross developemnt costs decrease. Trust C apitalisation Approach • Capitalisation rates of 5.00% to 7.00% (2024 : 4.75% to 6.60%) The estimated fair value would increase if the capitalisation rate, discount rate and terminal yield decreased. D iscounted Cash Flow Method • Discount rates of 7.00% to 8.00% (2024 : 7.00% to 8.25%) • Terminal yields of 5.25% to 6.80% (2024 : 5.00% to 6.85%) D irect Comparison Method • Adjusted price (psm): Not applicable (2024 : $1,068 to $5,599) The estimated fair value would increase if the price psm increased. R esidual Land Value Method • Gross development costs (psm): $2,533 to $5,924 (2024 : $2,612 to $5,347) The estimated fair value would increase if the qross development costs decrease. (ii) Movements in Level 3 assets and liabilities measured at fair value Right-of-use assets The right-of-use assets are stated at fair value approximate the value of lease liabilities at each balance sheet date. The Group discounted lease payments using the applicable incremental borrowing rates to measure the value of lease liabilities. The weighted average incremental borrowing rates applied are 4.22% (2024 : 4.22%) for 15 years’ leases, 4.55% (2024 : 4.55%) for 20 years’ leases and 5.05% (2024 : 5.05%) for 30 years’ leases. The fair value of right-of-use assets of the Group and the Trust was $604.8 million (2024 : $629.9 million) and $573.8 million (2024 : $600.9 million) respectively as at 31 December 2025. The reconciliation for investment properties, investment properties under development and right-ofuse assets are measured at fair value based on significant unobservable inputs (Level 3) is disclosed in Note 4, Note 5 and Note 7 respectively. 29. Fair Value Measurement (continued) (c) Level 3 fair value measurements (continued) (i) Information about significant unobservable inputs used in Level 3 fair value measurement (continued) Investment properties and investment properties under development (continued)
RkJQdWJsaXNoZXIy NTM2MDQ5