ESR Group IR2024 eBook EN

72 Notes to Condensed Consolidated Financial Information 30 June 2024 STRENGTH IN UNITY 13. INVESTMENT PROPERTIES (continued) (d) Fair value hierarchy (continued) The movements in fair value measurements within Level 3 during the period are as follows: For the six months ended 30 June 2024 2023 (Unaudited) (Unaudited) US$’000 US$’000 At 1 January 3,088,516 2,624,209 Additions 170,787 124,448 Changes in fair value of investment properties (30,515) 115,528 Disposal — (32,203) Disposal of subsidiaries (92,120) (9,805) Transfer from Level 2 to Level 3 — 372,848 Reclassification to assets held for sale (282,257) (203,936) Exchange realignment (104,089) (108,270) At 30 June 2,750,322 2,882,819 The valuation of investment properties categorised within Level 2 of the fair value hierarchy is based on comparable market transactions for which the Group considers sales of similar properties that have been transacted in the open market. Below is a summary of the valuation techniques used and the key unobservable inputs to the valuation of investment properties categorised within Level 3 of the fair value hierarchy as at 30 June 2024 and 31 December 2023: Investment property details Valuation technique Key unobservable inputs Inter-relationship between key unobservable inputs and fair value measurement Logistics Income capitalisation Capitalisation rate: The estimated fair value varies inversely against capitalisation rate Facility, Data Centres, Land China: 5.40% to 7.00% (2023: 5.40% to 7.00%) Japan: 4.00% to 4.80% (2023: 3.30% to 4.80%) India: N/A (2023: N/A) Discounted cash flow Discount rate: The estimated fair value varies inversely against the discount rate China: 7.25% to 9.00% (2023: 7.25% to 9.00%) Japan: 3.80% to 4.60% (2023: 3.10% to 4.70%) India: 11.23% to 13.85% (2023: 11.27% to 14.50%) Terminal capitalisation rate: The estimated fair value varies inversely against the terminal capitalisation rate China: 4.25% to 6.25% (2023: 4.25% to 6.25%) Japan: 4.10% to 5.10% (2023: 3.50% to 5.20%) India: 7.50% (2023: 7.50%)

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