ESR Interim Report 2020 (EN)

Notes to Condensed Consolidated Financial Information 30 June 2020 56 13. INVESTMENT PROPERTIES (continued) (d) Fair value hierarchy (continued) Below is a summary of the valuation techniques used and the key unobservable inputs to the valuation of investment properties categorised within Level 3 of the fair value hierarchy: Investment property details Valuation technique Key unobservable inputs Inter-relationship between key unobservable inputs and fair value measurement Warehouse  properties Income capitalisation Capitalisation rate: China: 5.70% to 7.10%  (2019: 5.25% to 6.50%) Japan: 4.10% to 4.40%  (2019: 4.20% to 4.50%) Australia: 5.25% to 7.75%  (2019: 5.25% to 7.75%) The estimated fair value  varies inversely against  the capitalisation rate Discounted cash flow Discount rate: China: 8.5% to 9.25%  (2019: 8.5% to 9.0%) Japan: 3.90% to 4.20%  (2019: 3.90% to 4.50%) Australia: 5.75% to 8.00%  (2019: 5.75% to 8.00%) The estimated fair value  varies inversely against the  discount rate Terminal capitalisation rate: China: 5.25% to 6.50%  (2019: 5.25% to 6.50%) Japan: 4.20% to 4.50%  (2019: 4.20% to 4.50%) Australia: 5.25% to 7.75%  (2019: 5.25% to 7.75%) The estimated fair value  varies inversely against the  terminal capitalisation rate