NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2025 36 LEASES (CONT’D) Extension options Some property leases contain extension options up to 30 years (2024: 30 years) exercisable by the Group before the end of the non-cancellable contract period. Where practicable, the Group seeks to include extension options in new leases to provide operational flexibility. The extension options held are exercisable only by the Group and not by the lessors. The Group assesses at lease commencement date whether it is reasonably certain to exercise the extension options. The Group reassesses whether it is reasonably certain to exercise the options if there is a significant event or significant changes in circumstances within its control. The Group has estimated that the potential future lease payments, should it exercise the extension options, would result in an increase in lease liabilities of $39.4 million (2024: $39.5 million). Leases as lessor The Group leases out its investment properties consisting of its owned properties as well as leased properties (see note 5). All leases are classified as operating leases from a lessor perspective. Operating leases The Group and the Company lease out some of their investment properties and development properties. The Group has classified these leases as operating leases, because they do not transfer substantially all of the risks and rewards incidental to the ownership of the assets. Note 5 sets out information about the operating leases of investment properties. Rental income from investment properties and property subleases recognised by the Group during 2025 was $500,928,000 (2024: $487,828,000). Contingent rents, generally determined based on a percentage of tenants’ revenue, of $22,112,000 (2024: $19,634,000), have been recognised as revenue by the Group in profit or loss during the year. The following table sets out a maturity analysis of lease rental receivables, showing the undiscounted lease payments to be received after the reporting date. Group Company 2025 2024 2025 2024 $’000 $’000 $’000 $’000 Less than one year 317,690 258,959 3,237 3,588 One to two years 242,749 187,895 184 779 Two to three years 174,717 125,913 – – Three to four years 110,364 82,664 – – Four to five years 74,150 50,030 – – More than five years 248,269 114,838 – – Total 1,167,939 820,299 3,421 4,367 Included in the non-cancellable operating lease rental receivables above are commitments with related parties which are set out below. Group Company 2025 2024 2025 2024 $’000 $’000 $’000 $’000 Non-cancellable operating lease rentals receivable from: – associates 4,840 4,840 – – – joint ventures – 76 – – – a fellow subsidiary 1,017 1,017 – – 5,857 5,933 – – ANNUAL REPORT 2025 | 187
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