11 PREFERRED UNITS (CONT'D) The preferred units are issued by indirect subsidiaries of the Trust with a par value of US$0.01 per preferred unit, and they rank senior to all units of the indirect subsidiaries. Each holder of the preferred units is entitled to receive cumulative preferential cash dividends (recorded as finance expense) at a rate 12.0% per annum per preferred unit plus all accrued and unpaid dividends which is payable annually in arrears. The preferred units are not convertible into, or exchangeable for, any other property or securities of the subsidiaries. The Board of Directors of the subsidiaries may, in its sole and absolute discretion, cause the subsidiaries to redeem units of the preferred units at US$1,000 per unit plus all accrued and unpaid dividends. The preferred units have been classified as financial liabilities in accordance with IAS 32. 12 DEFERRED TAX LIABILITIES Deferred tax liabilities are attributable to the following: Group 2024 2023 US$’000 US$’000 Investment properties − 777 At 31 December 2022 Statement of Comprehensive Income (Note 19) At 31 December 2023 Disposal Statement of Comprehensive Income (Note 19) At 31 December 2024 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 Deferred tax liabilities Investment properties – Change in fair value of investment properties (52,804) (32,710) (85,514) 6,058 (14,422) (93,878) – Tax depreciation 71,879 14,412 86,291 (6,058) 13,645 93,878 19,075 (18,298) 777 − (777) − Deferred income tax assets are recognised for changes in fair value of investment properties carried forward to the extent that realisation of the related tax benefits through future taxable profits is probable. As at 31 December 2024, the Group had unrecognised deferred tax assets of US$149.7 million (2023: US$136.8 million) arising from changes in fair value of investment properties at the end of the financial year which can be carried forward and used to offset against future fair value changes subject to meeting certain requirements. 176 | MANULIFE US REIT NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024
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