NTUC Income AR 2018

Notes to the Financial Statements For the Financial Year Ended 31 December 2018 7. Investment properties 2018 $’000 2017 $’000 Life Insurance Par Fund At 1 January 1,870,001 1,779,708 Additions 1,836 215 Disposals – (1,462) Asset held for sales – (1,220) Change in net fair value recognised in profit or loss 49,357 92,760 At 31 December 1,921,194 1,870,001 Investment properties are carried at fair values at the reporting date as determined by independent professional valuers. All properties are held as investment properties within the Life Insurance Par Fund for investment purposes (rental yields and/or capital appreciation). Any change in value of the properties would accrue mainly to the participating policyholders. One of the investment properties, with carrying amount of $763,900,000 (2017: $745,800,000) is mortgaged against the bank borrowing (Note 18). These properties are held for the purpose of capital appreciation and rental income. The following amounts are recognised in profit or loss. 2018 $’000 2017 $’000 Rental income 91,582 96,676 Direct operating expenses arising from investment properties that generated rental income (26,852) (27,299) 8. Investment in subsidiaries The subsidiaries of the Co-operative, all incorporated in Singapore and having their place of business in Singapore, at 31 December 2018 are as follows: Name Principal activities Interest held by Co-operative 2018 % 2017 % Life Insurance Par Fund NTUC Co-operatives Suzhou Investments Pte Ltd Investment holding 73 73 Savu Investments Pte. Ltd. Owning and leasing an investment property 100 100 Shareholders’ Fund NTUC Income Enterprises Pte Ltd Operator of retail and referral services 100 100 NTUC Income Holdings Pte. Ltd. Investment holding 100 100 96 HAND IN HAND