Investment property (Tables)

12 Months Ended

Dec. 31, 2023

(a)

This caption is made up as follows:


	2023		2022		Acquisition or construction year		Valuation methodology (e) 2023 / 2022
	S/(000)		S/(000)
Land (i)
San Isidro – Lima		269,194		264,868		2009		Appraisal
San Martín de Porres – Lima		77,970		88,182		2015		Appraisal
Nuevo Chimbote		34,724		33,747		2021		Appraisal
Santa Clara – Lima		27,229		26,352		2017		Appraisal
Sullana		23,751		22,689		2012		Appraisal
Others		8,987		8,716		—		Appraisal / Cost

		441,855		444,554

Completed investment property - “Real Plaza” shopping malls (i)
Talara		28,991		43,728		2015		DCF

		28,991		43,728

Buildings (i)
Ate Vitarte – Lima		160,208		149,720		2006		DCF/Appraisal
Piura		131,144		123,508		2008/2020		DCF/Appraisal
Orquídeas - San Isidro - Lima, (d), Note 3.4(o)		128,593		138,643		2017		DCF
Chorrillos – Lima (d)		94,184		81,516		2017		DCF
Paseo del Bosque (d)		87,168		96,194		2021		DCF
Chimbote		47,054		45,069		2015		DCF
Maestro – Huancayo		34,978		32,342		2017		DCF
Cuzco		28,167		27,513		2017		DCF
Panorama – Lima		22,136		20,669		2016		DCF
Trujillo		16,225		15,815		2016		DCF
Cercado de Lima – Lima		15,908		14,543		2017		DCF
Pardo y Aliaga – Lima		14,790		16,755		2008		DCF
Pardo (Vivanda) (d)		12,903		4,004		2021		DCF
Others		34,588		33,144		—		DCF

		828,046		799,435

Total		1,298,892		1,287,717

DCF: Discounted cash flow

(i)	Financial assets classified by the Group as Level 3. During 2023 and 2022, there were no transfers between levels of hierarchy, see Note 3.4(z)

(ii)	As of December 31, 2023 and 2022, there are no liens on investment property.

(b)

The net gain on investment properties as of December 31, 2023, 2022 and 2021, consists of the following:


	2023		2022		2021
	S/(000)		S/(000)		S/(000)
Income from rental of investment property		65,961		65,485		57,430
Gain on valuation of investment property		7,111		19,146		21,969

Total		73,072		84,631		79,399

(c)

The movement of investment property for the years ended December 31, 2023, 2022 and 2021, is as follows:

Following are the minimum ranges, maximum ranges and the average price for the land, before any adjustment:

The main assumptions used in the valuation and estimation of the market value of investment property are detailed below:


	US$ / Percentage
	2023			2022
Average ERV	US$	129.3		US$	125.9
Long-term inflation		2.9	%		3.1	%
Long-term occupancy rate		97.1	%		97.1	%
Average growth rate of rental income		3.1	%		2.9	%
Average NOI margin		93.0	%		93.7	%
Discount rate		9.6	%		10.3	%

The sensitivity analysis on the valuation of investment property, against changes in factors deemed relevant by Management, is presented below:


			2023			2022
			S/(000)			S/(000)
Average growth rate of rental income (basis) -
Increase	+0.25	%		20,853			10,474
Decrease	-0.25	%		(16,791	)		(10,107	)
Long-term inflation (basis) -
Increase	+0.25	%		17,833			16,133
Decrease	-0.25	%		(13,824	)		(15,017	)
Discount rate (basis) -
Increase	+0.5	%		(50,337	)		(47,957	)
Decrease	-0.5	%		62,076			55,135

(f)

Below are the nominal amounts of the future minimum fixed rental income of the Group’s investment property (operating leases):


Year	2023		2022
	S/(000)		S/(000)
Within 1 year		69,078		61,557
After 1 year but not more than 5 years		255,898		241,546
Over 5 years		855,949		865,407

Total		1,180,925		1,168,510