Growthpoint Interactive Half Year Report 2019

Financial Management Financial Report Additional Information Portfolio Review Business Overview Notes to the Financial Statements (cont.) Reconciliation of value of investment property six months to 31-Dec-18 six months to 30-Jun-18 $’000 $’000 At fair value Opening balance 3,291,800 3,285,000 Acquisitions 361,772 134 Construction and expansion costs 12,775 – Capital expenditure 5,124 3,921 Lease incentives and leasing costs 29,946 8,734 Amortisation of lease incentives and leasing costs (9,247) (8,863) Net reclassification (to) / from available for sale 19,062 (64,250) Straight lining of revenue adjustment 2,937 3,059 Net gain from fair value adjustment 101,407 64,065 Closing balance 3,815,575 3,291,800 2.3 Investment in securities Determination of fair value Investment in securities contains a financial asset designated at fair value through profit or loss at inception. The fair value of investment in securities is the price that would be received to sell this asset in an orderly transaction between market participants at the measurement date. This fair value is based on the last traded market price from the Australian Securities Exchange (ASX) of the relating security at reporting date. The following table represents the fair value movement in investment in securities for the half year ended 31 December 2018. Reconciliation of movement in Fair value of Industria REIT stapled securities six months to 31-Dec-18 six months to 30-Jun-18 $’000 $’000 Opening balance 78,497 74,646 Net gain from fair value adjustment 2,370 3,851 Closing balance 80,867 78,497 An off-market purchase of 29,621,555 Industria REIT (IDR) stapled securities was completed in July 2017. The last traded market price of an IDR stapled security on the ASX was $2.73 as at 31 December 2018. 2.2 Investment properties (cont.) Growthpoint Properties Australia | 2019 Half Year Report 35