12. INVESTMENT PROPERTIES (CONTINUED)
Sensitivity analysis on key estimates:
Indonesia Properties:
1.
Discount rates
A hypothetical 10% increase or decrease in the pre-tax discount rate applied to the discounted cash flows would
have an effect on return before tax of – lower by S$59.2 million (2013: S$67.5 million); higher by S$69.3 million
(2013: S$76.5 million) respectively.
2. Growth in rental income
A hypothetical 10% increase or decrease in the rental income would have an effect on return before tax of – higher
by S$50.9 million (2013: S$40.5 million); lower by S$50.8 million (2013: S$40.9 million) respectively.
3. Terminal growth rates
A hypothetical 10% increase or decrease in the terminal growth rate would have an effect on return before tax
of – lower by S$27.5 million (2013: S$29.2 million); higher by S$37.3 million (2013: S$33.3 million) respectively.
Singapore Properties:
1.
Discount rates
A hypothetical 10% increase or decrease in the pre-tax discount rate applied to the discounted cash flows would
have an effect on return before tax of – lower by S$1.8 million (2013: S$1.9 million); higher by S$2.0 million
(2013: S$2.1 million) respectively.
2. Growth in rental income
A hypothetical 10% increase or decrease in the rental income would have an effect on return before tax of – higher
by S$2.5 million (2013: S$2.5 million); lower by S$2.4 million (2013: S$2.4 million) respectively.
3. Terminal growth rates
A hypothetical 10% increase or decrease in the terminal growth rate would have an effect on return before tax
of – lower by S$0.4 million (2013: S$0.4 million); higher by S$0.4 million (2013: S$0.5 million) respectively.
South Korea Property:
1.
Growth in rental income
A hypothetical 10% increase or decrease in the rental income would have an effect on return before tax of – higher
by S$0.9 million (2013: S$0.8 million); lower by S$0.8 million (2013: S$0.8 million) respectively.
2. Capitalisation rates
A hypothetical 10% increase or decrease in the capitalisation rate would have an effect on return before tax of –
lower by S$0.8 million (2013: S$0.8 million); higher by S$0.9 million (2013: S$0.9 million) respectively.
NOTES TO THE
FINANCIAL STATEMENTS
31 DECEMBER 2014
73
FIRST REIT
ANNUAL REPORT 2014
