ESR Interim Report 2020 (EN)

Notes to Condensed Consolidated Financial Information 30 June 2020 54 13. INVESTMENT PROPERTIES (continued) (b) Completed investment properties leased out under operating leases The Group leases out completed investment properties under operating lease arrangements. All leases run for a period of one to ten years, with an option to renew the leases after the expiry dates, at which time all terms will be renegotiated. The Group’s total future minimum lease receivables under non-cancellable operating leases generated from completed investment properties are as follows: 30 June 2020 31 December 2019 (Unaudited) (Audited) US$’000 US$’000 Within one year 70,791 103,453 After one year but within two years 57,412 89,430 After two years but within three years 35,121 68,636 After three years but within four years 17,105 43,894 After four years but within five years 4,722 27,326 After five years 2,071 59,130 187,222 391,869 (c) Certain of the Group’s completed investment properties and investment properties under construction with a fair value of US$2,194,577,000 (31 December 2019: US$1,899,602,000) were pledged to secure bank and other borrowings granted to the Group as disclosed in note 15. (d) Fair value hierarchy The following table illustrates the fair value measurement hierarchy of the Group’s investment properties: For the six months ended 30 June 2020 2019 (Unaudited) (Audited) US$’000 US$’000 Significant observable inputs (Level 2) 75,456 44,790 Significant unobservable inputs (Level 3) 2,510,323 2,611,717 2,585,779 2,656,507 During the period, there were no transfers of fair value measurement between Level 1 and Level 2 (30 June 2019: nil).