41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 205
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
203
OTHER INFORMATION
Recurring fair value measurement
All investment and development properties are classified as Level 3 in the fair value hierarchy.
2022
£m
2021
£m
London – rental properties
1,212.8
849.8
Prime regional – rental properties
1,105.6
992.9
Major regional – rental properties
1,130.0
1,263.5
Class of asset
Provincial – rental properties
103.9
217.1
London – development properties
91.9
249.9
Prime regional – development properties
32.4
48.4
Major regional – development properties
64.1
25.8
London build-to-rent – rental properties
71.1
–
Prime regional build-to-rent – development properties
Investment property (owned)
Investment property (leased)
Market value (including assets classified as held for sale)
Investment property (classified as held for sale)
Market value
14.3
–
3,826.1
3,647.4
90.3
97.7
3,916.4
3,745.1
–
(228.2)
3,916.4
3,516.9
The valuations have been prepared in accordance with the latest version of the RICS Valuation – Global Standards
(incorporating the International Valuation Standards) and the UK national supplement (the “Red Book”) based on net
rental income, estimated future costs, occupancy, property management costs and the net initial yield or discount rate.
Where the asset is leased to a university, the valuations also reflect the length of the lease, the allocation of maintenance
and insurance responsibilities between the Group and the lessee, and the market’s general perception of the lessee’s
creditworthiness.
The resulting valuations are cross-checked against comparable market transactions.
For development properties, the fair value is usually calculated by estimating the fair value of the completed property
(using the discounted cash flow method) less estimated costs to completion.
Fair value using unobservable inputs (Level 3)
Opening fair value
Gains and (losses) recognised in income statement
2022
£m
2021
£m
3,516.9
3,903.7
103.4
105.8
–
(228.2)
Capital expenditure
310.6
136.7
Disposals
(14.5)
(401.1)
Transfer to current assets classified as held for sale
Closing fair value
Investment property (classified as held for sale)
Closing fair value (including assets classified as held for sale)
3,916.4
3,516.9
–
228.2
3,916.4
3,745.1
