Annual Report 2024

Dar Al-Maal Al-Islami Trust NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2024 in thousands of USD 40 13. Investment properties (continued) The estimates and associated assumptions of fair value are based on the historical experience and other factors that are believed to be reasonable under circumstances, the result of which form the basis of making the judgement about carrying value of investment property. Although the Board of Directors believes that its estimate of fair value is appropriate, the use of different methodologies or assumptions could lead to different measurements of fair value. The valuation of the certain investment properties was carried out by an independent registered third-party valuer (“the Valuer”) in accordance with the RICS Appraisal and Valuation Manual issued by the Royal Institute of Chartered Surveyors (“RICS”) using market approach. Investment properties are located in the Middle East, Canada, Asia and Europe. The valuation of the investment properties is based on the sales comparable approach with the key inputs being the price per square foot or on market comparable approach using rents, sale and discounted cash flows. On this basis and considering that there are no observable inputs, these investment properties are classified as level 3. 13.1 Fair values of land and buildings Sensitivity of Level 3 measurements to changes in assumptions An assumed ± 10% movement in the fair value of Level 3 measurement has the following impact due to sensitivity of price per square foot or metre used in the valuation methodology: Impact in income At 31 December 2024 Favourable changes Unfavourable changes Investment properties 34,187 (34,187) At 31 December 2023 Investment properties 38,462 (38,462) Investment property under operating leases The Group leases out part of its investment properties under operating leases. The leases are for terms of one to five years. The future aggregate minimum rentals receivable under non-cancellable operating leases are as follows: 2024 2023 Not later than one year 1,887 2,183 Later than one year and not later than five years 1,392 2,929 3,279 5,112 An independent valuation of the Group’s land and buildings recognised as investment property in the consolidated statement of financial position was performed by valuers to determine the fair value of the land and buildings as at 31 December 2024. The revaluation surplus net of applicable deferred income taxes was debited or credited to the consolidated statement of income for assets recorded as investment property. The following table analyses the non-financial assets carried at fair value, by valuation method. The different levels have been defined as follows: (a) Land and buildings in Level 1 : Quoted prices (unadjusted) in active markets for identical assets or liabilities. (b) Land and buildings in Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly (that is, as prices) or indirectly (that is, derived from prices). (c) Land and buildings in Level 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).