NTUC Income AR 2019

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 7. INVESTMENT PROPERTIES 2019 $’000 2018 $’000 Life Insurance Par Fund At 1 January 1,921,194 1,870,001 Additions 13,894 1,836 Change in net fair value recognised in profit or loss 18,457 49,357 At 31 December 1,953,545 1,921,194 Investment properties comprises a number of commercial properties that are leased to third parties. Each of the leases contract is non-cancellable. 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 $789,100,000 (2018: $763,900,000) 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. 2019 $’000 2018 $’000 Rental income 91,999 91,582 Direct operating expenses arising from investment properties that generated rental income (26,733) (26,852) 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 2019 are as follows: Name Principal activities % of ownership interest 2019 % 2018 % 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 100 100 102 HERE FOR SURE