2 BASIS OF PREPARATION (CONT'D) 2.3 Use of going concern assumption (cont’d) The Group has continued to generate positive cash flows from operating activities during the current and prior years, and is expected to meet its operating cash flow requirements through cash flows from its existing and future lease agreements with tenants. (ii) The Group is actively conducting the sale of certain Tranches 1 and 2 Assets (as defined in Note 6) and has potential third-party buyers identified who are in the process of conducting due diligence. These initiatives support the Group’s aims and expectation of meeting the 2025 Net Proceeds Target. (iii) If the Group requires additional time beyond the Disposal Deadline of 30 June 2025 to meet the 2025 Net Proceeds Target, the MRA provides for an extension of the Disposal Deadline, subject to prior consent of the majority lenders as defined in the MRA. In the event the Group is unable to meet the 2025 Net Proceeds Target by the Disposal Deadline or obtain an extension, the majority lenders under each facility agreement have the contractual right to demand immediate repayment of the outstanding loan. If the Group is unable to continue as a going concern, the Group may be unable to discharge its liabilities in the normal course of business and adjustments may have to be made to reflect the situation that assets may need to be realised other than in the normal course of business and at amounts which could differ significantly from the amounts at which they are currently recorded in the statement of financial position. In addition, the Group may have to reclassify non-current assets and liabilities as current assets and liabilities. No such adjustments have been made to these financial statements. 2.4 Functional and presentation currency The financial statements are presented in United States Dollars (“US$” or “USD”), which is the functional currency of the Trust. All financial information presented has been rounded to the nearest thousand (US$’000), unless otherwise stated. 2.5 Use of estimates and judgements The preparation of the Group’s consolidated financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively. Information about critical judgements and accounting estimates in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is described in the following notes: • Note 2.3 – Use of going concern assumption • Note 5 – Measurement of expected credit losses (“ECLs”) for trade receivables • Note 6 – Valuation of investment properties and asset held for sale • Note 10 – Fair value of derivatives Measurement of fair values A number of the Group’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. The Group uses third-party appraisal firms and financial institutions to perform valuations. The Manager assesses and documents the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of IFRS Accounting Standards, including the level in the fair value hierarchy in which such valuations should be classified. ANNUAL REPORT 2024 | 155 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024
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