Notes to the financial statements |

For the year ended 31 December 2022

Valuation

The most recent valuation of land and buildings were performed by independent valuers, Carl Waalkens and Joshua Higgie of Bayleys Valuation Services as at 31 December 2021.

Land and buildings using market-based evidence Land and non-specialised buildings are valued at fair value using market-based evidence. The main marketbased valuation methods applied were capitalised income and discounted cashflow methods. The capitalised income method considers both sales and leasing evidence by using market rents and capitalisation rates to determine the current fair value. The discounted cashflow method has been calculated on a 10-year investment period with discount rates between 7% and 7.25% to provide the net present fair value.

Market rents range from $0.025m to $1.9m per annum. An increase (decrease) in market rents would increase (decrease) the fair value of non-specialised buildings.

Capitalisation rates are market-based rates of return and range from 4% to 9%. An increase (decrease) in the capitalisation rate would decrease (increase) the fair value of non-specialised buildings.

Specialised buildings

Where applicable, the depreciated replacement cost method was considered for specialised buildings (for example, campuses) to determine the fair value.

Depreciated replacement cost is determined using a number of significant assumptions. Significant assumptions include:

› The replacement asset is based on the replacement with modern equivalent assets with adjustments where appropriate for obsolescence due to over design or surplus capacity.

› The replacement cost is derived from QV costbuilder costs data and where relevant, recent construction contracts of similar assets. Construction costs range from $1,450 to $4,600 per square metre, depending on the nature of the specific asset valued. This range reflects the different components of buildings, ranging from ground service areas to accommodation blocks.

Artwork

The most recent valuation of artwork was performed by an independent valuer, Erika Chamberlain of Antique and Art. The valuation was undertaken in accordance with PBE IPSAS 17 using fair value and is effective as at 31 December 2021.

Determination of fair value has been made by:

› Reference to observable prices in an active market. Where the market exists for the same or similar asset the market prices are deemed to be a fair value. The values ascribed in the valuation are primarily based on observable process both in the primary retail market and secondary auction market.

› If there is no active market, fair value is determined by other market based evidence adjudged by active and knowledgeable participants in the market.

Impairment

No impairment losses (2021: nil) have been recognised for leasehold improvements due to no longer being in our current property portfolio or the improvement no longer exists. Impairment losses of $0.0m (2021: $0.0m) have been recognised for library books due to no longer being in our current library collection. note 5. The impairment loss has been recognised in the statement of comprehensive revenue and expense in the line item “Other expenses”.