NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 47 COMPARATIVE INFORMATION (CONT’D) Summary of quantitative impact The following tables summarise the material impacts on the Group’s consolidated statement of financial position, consolidated statement of profit or loss, consolidated statement of comprehensive income and consolidated statement of cash flows. Group As previously reported Adjustments As restated $’000 $’000 $’000 Statement of financial position 31 December 2021 Investment properties 3,997,169 985,677 4,982,846 Trade and other receivables 1,851,903 41,064 1,892,967 Cash and cash equivalents 2,083,165 17,535 2,100,700 Assets held for sale 1,445,759 (1,057,033) 388,726 Others 14,515,030 – 14,515,030 Total assets 23,893,026 (12,757) 23,880,269 Other liabilities 216,615 3,956 220,571 Trade and other payables 1,438,461 16,470 1,454,931 Provision for taxation 362,960 5,722 368,682 Liabilities directly associated with the assets held for sale 27,349 (26,148) 1,201 Others 12,515,612 – 12,515,612 Total liabilities 14,560,997 – 14,560,997 Reserves 6,422,163 (12,757) 6,409,406 Others 2,909,866 – 2,909,866 Total equity 9,332,029 (12,757) 9,319,272 Consolidated statement of profit or loss Year ended 31 December 2021 Administrative expenses (501,458) (7,464) (508,922) Other operating expenses (236,258) (5,480) (241,738) Others 877,555 – 877,555 Profit for the year 139,839 (12,944) 126,895 Profit attributable to: – Owners of the Company 97,657 (12,944) 84,713 – Non-controlling interests 42,182 – 42,182 Profit for the year 139,839 (12,944) 126,895 Earnings per share – Basic 9.3 cents (1.4 cents) 7.9 cents – Diluted 9.3 cents (1.4 cents) 7.9 cents 46 SUBSEQUENT EVENTS On 9 March 2023, the Group through its indirect wholly-owned subsidiary, City Pinnacle UK Holdings Limited (formerly known as Maplegate Holdings Limited), entered into a sale and purchase agreement to (i) acquire 100% of the shares and voting interests in MPG St Katharine Limited, which via its direct/indirect wholly-owned subsidiaries holds the St Katharine Docks development in London, United Kingdom; and (ii) settle existing indebtedness amounts, for a total consideration of approximately $596.4 million (£372.8 million). The acquisition was funded through internal cash resources and credit facilities. On 22 March 2023, the Group, through its subsidiaries of M&C Group, entered into a property sale agreement and business asset sale agreement with a third party to acquire a hotel in Brisbane, Australia, together with its existing business assets for a combined consideration of approximately $159.2 million (A$177.7 million). The completion of the acquisition, which is subject to fulfilment of several condition precedents as stipulated in the agreements, is expected in the second half of 2023. The acquisition will be funded through internal cash resources and credit faciliities. 47 COMPARATIVE INFORMATION In June 2021, the Group applied for an initial public offering (IPO) of a real estate investment trust (REIT) that would own commercial assets located in the UK and planned to dispose of the subsidiaries which hold two commercial properties in the UK, namely Aldgate House and 125 Old Broad Street (which are in the investment properties segment), to the proposed REIT. Accordingly, the assets and liabilities of the subsidiaries were reclassified to assets held for sale and liabilities directly associated with the assets held for sale, in 2021. During 2022, the Group considered the unprecedented interest rates hike has severely impacted the IPO of REITs in Singapore with several planned IPO and secondary fund-raising exercises of REITs being withdrawn. Amidst this challenging market, the Group decided not to proceed with the planned REIT IPO. Accordingly, the assets and liabilities of the relevant subsidiaries ceased to be classified as held for sale, and the Group reclassified the assets held for sale and liabilities directly associated with the assets to the Group’s respective assets and liabilities. Arising from the reclassification, the Group recognised a depreciation expense of $7,464,000 on the two investment properties and recognised an impairment loss of $5,480,000 on one of the commercial properties for the year ended 31 December 2021. The impairment loss was determined based on the recoverable amount of the commercial property which was estimated using the fair value less cost to sell approach and applying the income capitalisation method. Under this methodology, the fair value measurement reflects current market expectations about an efficient third party operator’s future cash flows. The income capitalisation method capitalises an income stream into a present value using revenue multipliers or single-year capitalisation rates. The key assumption used in estimating the recoverable amount of the impaired investment property was the capitalisation rate of 5.0%. The impairment loss arose as the recoverable amount was reduced by the amount of stamp duty and land tax payable by the Group, which would not be payable had the Group proceeded with the sale. The fair value disclosure of two investment properties above as at 31 December 2021 of $1,021,363,000 is categorised as a Level 3 fair value based on the inputs to the valuation techniques used. In accordance with SFRS(I) 5 Non-current Assets Held for Sale and Discontinued Operations, the comparative figures have been restated to account for the effects of these reclassifications within the Group’s statement of financial position and adjustments within the Group’s consolidated statement of profit or loss, consolidated statement of comprehensive income and consolidated statement of cash flows. CITY DEVELOPMENTS LIMITED ANNUAL REPORT 2022 FINANCIALS 270 271
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