Annual Report 2024

231 2024 Annual Report Transport International Holdings Limited NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 14 Investment properties and investment property under development (continued) (b) Fair value measurement (continued) 2024 Fair value measurements categorised into Fair value Level 1 Level 2 Level 3 $’000 $’000 $’000 $’000 Recurring fair value disclosures Investment properties in Hong Kong – commercial properties 5,260,800 – – 5,260,800 – industrial properties 101,000 – – 101,000 Investment property under development in Hong Kong 2,911,500 – – 2,911,500 2023 Fair value measurements categorised into Fair value Level 1 Level 2 Level 3 $’000 $’000 $’000 $’000 Recurring fair value disclosures Investment properties in Hong Kong – commercial properties 5,303,500 – – 5,303,500 – industrial properties 103,000 – – 103,000 Investment property under development in Hong Kong 2,805,000 – – 2,805,000 During the years ended 31 December 2024 and 2023, there were no transfers between Level 1 and Level 2, or transfers into or out of Level 3. The Group’s policy is to recognise transfers between levels of fair value hierarchy as at the end of the reporting period in which they occur. The Group’s investment properties and investment property under development were revalued at 31 December 2024 and 2023 by Knight Frank Petty Limited, an independent firm of professional qualified valuers, who have among their staff Fellows of the Hong Kong Institute of Surveyors with recent experience in the location and category of property being valued, on a market value basis, in accordance with Valuation Standards on Properties issued by Hong Kong Institute of Surveyors. As at 31 December 2024 and 2023, the Group’s investment properties are valued using the income capitalisation approach by capitalising net income from the existing tenancies and reversionary income potential at appropriate capitalisation rates for individual properties. The capitalisation rate adopted is derived by making reference to the yields achieved from analysis of comparable property investment transactions and valuer’s view of prevailing investor expectations regarding rental growth and perceived risks. As at 31 December 2024, the Group’s investment property under development is valued using the income capitalisation approach by capitalising net income from the existing tenancies and reversionary income potential at appropriate capitalisation rates for individual properties less the costs that will be incurred to complete the development. The capitalisation rate adopted is derived by making reference to the yields achieved from analysis of comparable property investment transactions and valuer’s view of prevailing investor expectations regarding rental growth and perceived risks.