Notes to the Consolidated Financial Statements (continued)

5. Investment property (continued) Valuation processes

The Company’s Deputy CEO performs valuations on the investment properties based on the latest independent valuations and considering recent market evidence, rental agreements, quality of covenant, yield comparisons and location of the asset. If available, information included in valuation reports prepared by independent valuation experts is taken into consideration. The Deputy CEO reports directly to the CEO and Finance Director, who report to the Audit & Risk Committee. Discussions of valuation processes and results are held between the Audit & Risk Committee, the CEO, Deputy CEO and Finance Director bi-annually and with independent valuers, at least once every five years for those investment properties that have a value over £500,000.

Independent professionally qualified valuers Jones Lang La Salle IP, Inc, who hold a recognised relevant professional qualification and have relevant experience in the locations and segments of the investment properties, valued the Waterfront Car Park on 31 December 2021.

At each financial year end, the Executive Directors:

• Verify all major inputs to the valuation report;

• Assess property valuation movements when compared to the prior year valuation report;

• Hold discussions with the internal valuer / independent valuer if an independent valuer has been appointed.

The “All risk yield comparison” (ARY) is a conventional real estate metric that uses annual net rental revenue to determine the capital value of an investment. ARY comprises both gross and net yields. The net yield includes the deduction of certain expenses, such as surveyor’s fees, stamp duty (where not held in a Special Purpose Vehicle), management fees, repairs and running costs, which are not deducted in the gross yield.

The Group has no restrictions on the realisability of its investment properties and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

All investment properties are assessed to be level 3 in the fair value hierarchy on the basis that unobservable market inputs are used to derive fair values. There have been no transfers between levels during the year.

5. Investment property (continued)

6. Property, plant and equipment

7. Leases

Group as a lessee

The Group’s lease contract for an office building expired on 22 January 2022. The Group had subleased part of the leased assets. There was no option to extend the termination date. The Group entered into a new lease contract that commenced on 23 January 2022.

The Group has no leased assets with lease terms of 12 months or less or any leases of office equipment with low value.