NOTES TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION For the six months ended 30 June 2022 13. INVESTMENT PROPERTIES (continued) (b) Completed investment properties leased out under operating leases The Group leases out completed investment properties under operating lease arrangements. All leases run for a period of one to ten years, with an option to renew the leases after the expiry dates, at which time all terms will be renegotiated. The Group’s total future minimum lease receivables under non-cancellable operating leases generated from completed investment properties are as follows: 30 June 2022 31 December 2021 (Unaudited) (Audited) US$’000 US$’000 Within one year 60,621 107,325 After one year but within two years 41,621 79,404 After two years but within three years 33,792 46,860 After three years but within four years 17,061 32,614 After four years but within five years 9,997 15,444 After five years 6,304 10,162 169,396 291,809 (c) Certain of the Group’s completed investment properties and investment properties under construction with a fair value of US$2,836,960,000 (31 December 2021: US$2,971,458,000) were pledged to secure bank and other borrowings granted to the Group (note 15). (d) Fair value hierarchy The following table illustrates the fair value measurement hierarchy of the Group’s investment properties: For the six months ended 30 June 2022 2021 (Unaudited) (Unaudited) US$’000 US$’000 Significant observable inputs (Level 2) 577,894 235,405 Significant unobservable inputs (Level 3) 2,588,894 3,362,834 3,166,788 3,598,239 During the period, there were no transfers of fair value measurement between Level 1 and Level 2 (30 June 2021: nil). E S R G R O U P L I M I T E D I N T E R I M R E P O R T 2 0 2 2 65
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