Swire Properties Limited – Annual report – 31 December 2021
Industry: investment property
4. Revenue (extract)
Revenue represents sales by the Company and its subsidiary companies to external customers and comprises:
5. Cost of Sales (extract)
39. Capital Commitments
* of which the Group is committed to funding HK$1,146 million (2020: HK$1,330 million).
At 31st December 2020, the Group was committed to inject capital of HK$3,946 million into a joint venture company.
At 31st December 2021, the Group had unprovided contractual obligations for future repairs and maintenance on investment properties of HK$213 million (2020: HK$270 million).
41. Lease Commitments
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Receipts by the Group as a lessor under operating leases (net of any incentives paid to lessees) are recognised as income in the consolidated statement of profit or loss on a straight-line basis over the period of the lease.
For commenced leases (which are not identified as low-value or short-term leases) undertaken by the Group as a lessee, right-of-use assets and the corresponding lease liabilities are recognised in the financial statements when the leased assets become available for use. Commitments in respect of leases payable by the Group as a lessee represent the total future lease payments for (i) committed leases which have not yet commenced at the year-end date and (ii) short-term leases.
The Group acts as both lessor and lessee under operating leases. Details of the Group’s commitments under non-cancellable operating leases are set out as follows:
(a) Lessor – lease receivables
The Group leases out investment properties under operating leases. The leases for investment properties typically run for periods of three to six years. The retail turnover-related rental income received from investment properties during the year amounted to HK$986 million (2020: HK$642 million).
The future aggregate minimum lease receipts under non-cancellable operating leases were receivable by the Group at the year end as follows:
Assets held for deployment on operating leases at the year end were as follows:
At 31st December 2021, there are no future lease payments under leases committed but not yet commenced by the Group and no short-term leases commitments which are significantly dissimilar to the portfolio of short-term leases for which expenses were recognised for the year ended 31st December 2021 (2020: None).