2013 — Page 89

Hong Kong Ferry (Holdings) Company Limited Annual Report 2013

Notes to the Accounts (Continued)

13

FIXED ASSETS (Continued)

(a)

Fair value measurement of investment properties (Continued)

(ii)

Information about Level 3 fair value measurements (Continued)

Fair value adjustment of investment properties is recognised in the line item "valuation gains on investment properties and investment property held for development" on the face of the consolidated

profit and loss account.

All the gains recognised in profit or loss for the year arise from the properties held at the balance sheet

date.

(b) The analysis of the net book value of all the properties, which are held in Hong Kong, is as follows:

(c)

Medium-term leases

The Group

2013

HK$'000

2012

HK$'000

1,308,252

1,241,048

The Group leases out investment properties under operating leases. The leases typically run for an initial period of one month to three years, with an option to renew the lease after that date at which time all terms are renegotiated. Certain of the leases include contingent rentals calculated with reference to the revenue of

tenants.

All properties held under operating leases that would otherwise meet the definition of investment properties

are classified as investment properties.

The Group's total future minimum lease payments under non-cancellable operating leases are receivable as

follows:

Within 1 year

After 1 year but within 5 years

After 5 years

2013

2012

HK$'000

HK$'000

34,752

32,108

21,407

25,802

1,594

56,159

59,504

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