NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2023 10. Investment properties (Cont’d) The carrying amount of the investment properties for the financial years ended 31 December 2023 and 2022 is based on the market value determined based on valuations, adjusted with accrued unbilled rental income, as follows: Group Fund 2023 2022 2023 2022 RM RM RM RM Investment properties - based on valuation report 1,654,770,090 1,730,466,300 1,644,300,000 1,645,200,000 Investment properties - accrued unbilled rental income (Note 12) (11,549,755) (9,184,916) (11,549,755) (9,184,916) 1,643,220,335 1,721,281,384 1,632,750,245 1,636,015,084 The investment properties are stated at fair value, which have been determined based on valuations performed by an independent professional valuer. The valuation method used in determining the valuations is the investment method. The fair values of the Group’s and of the Fund’s investment properties have been arrived at on the basis of a valuation carried out by Messrs. CBRE Valuation Pty Limited (“CBRE”), independent professional valuers not related to the Group and the Fund. Messrs. CBRE is registered members of the Board of Valuers, Appraisers and Estate Agents, Malaysia, and they have appropriate qualifications and recent experience in the valuation of the properties in the relevant locations. The valuation of the Group’s and of the Fund’s investment properties were performed in accordance with the Malaysian Valuation Standards issued by the Board of Valuers, Appraisers and Estate Agents, Malaysia. There are no material events that affect the valuation between the valuation, data and financial year end. Policy on transfer between levels The fair value of an asset to be transferred between levels is determined as of the data of the event or change in circumstances that caused the transfer. Level 1 fair value Level 1 fair value is derived from quoted price (unadjusted) in active markets for identical investment properties that the entity can assess at the measurement date. Level 2 fair value Level 2 fair value is estimated using inputs other than quoted prices included within Level 1 that are observable for the investment properties, either directly or indirectly. Level 3 fair value Level 3 fair value is estimated using unobservable inputs for the investment property. Transfer between Level 1, 2 and 3 fair values There is no transfer between level 1, 2 and 3 fair values during the financial year. Fair value of investment properties is classified as Level 3. AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2023 204 FINANCIAL STATEMENTS 1 2 3 4 5
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