Annual Report 2025 177 Fair value hierarchy The fair value measurement for the land and buildings have been categorised as level 3 fair values based on inputs to the valuation techniques used. Valuation technique and significant unobservable inputs Land and buildings are stated at fair value based on valuation performed by external property valuers. The fair values were derived based on the discounted cash flow method (2024: discounted cash flow method). In determining the fair value, the valuers have used valuation techniques which involve certain estimates. The key assumptions used to determine the fair value of land and buildings include market-corroborated discount rate, terminal capitalisation rate and revenue per available unit. The valuation of the Stapled Group’s land and buildings is discussed with the ARC and Board of Directors in accordance with the Stapled Group’s reporting policies. The following table shows the significant unobservable inputs used in the valuation models: Valuation technique Significant unobservable inputs Inter-relationship between key unobservable inputs and fair value measurement Discounted cash flow method Stapled Group • Discount rate: Australia: 7.50% – 8.25% (2024: 7.75% – 8.65%) Singapore: 5.91% (2024: 5.57%) Ireland: 8.78% (2024: 8.41%) • Terminal capitalisation rate: Australia: 5.50% – 6.25% (2024: 5.75% – 7.00%) Singapore: 3.50% (2024: 3.75%) Ireland: 6.60% (2024: 6.00%) The estimated fair value would increase (decrease) if: • the discount rate was lower (higher); or • the terminal capitalisation rate was lower (higher). 5 Property, Plant and Equipment (continued)
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