NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2015
128
THE STRAITS TRADING COMPANY LIMITED
37.
LEASE COMMITMENTS
Operating Lease Commitments
(a)
For Lessor
The Group and Company have entered into property lease agreements on their investment properties and
completed development properties for sale. These non-cancellable leases have remaining non-cancellable lease
terms of up to 6 years. Contingent lease receipts are subject to the revenue exceeding a level stated in the respective
agreements. Certain property lease agreements have renewal options; and restrict any assignment and subletting
of the lease properties.
During the year, there were no contingent lease receipts recognised in profit or loss at Group level (2014: $8,000).
Future minimum lease receivable under non-cancellable operating leases are as follows:
Group
Company
2015
2014
2015
2014
$’000
$’000
$’000
$’000
Not later than 1 year
10,906
6,761
1,446
1,637
Later than 1 year but not later than 5 years
13,673
4,117
737
1,648
Later than five years
1,093
–
–
–
25,672
10,878
2,183
3,285
(b)
For Lessee
The Group has entered into operating lease agreements for properties and office equipment. These non-cancellable
operating leases have remaining non-cancellable lease terms of up to 4 years. Contingent rents are payable subject
to the related revenue exceeding a level stated in the respective agreements. Certain property lease agreements have
renewal options. The lessee shall not assign, mortgage or charge the lease propertywithout prior consent of the landlord.
There is no restriction imposed by lease arrangements, such as those concerning dividends and additional debt.
Operating lease payments recognised in profit or loss are as follows:
Group
2015
2014
$’000
$’000
Minimum lease payments
1,779
1,178
Contingent lease payments
–
52
1,779
1,230
Future minimum lease payable under non–cancellable operating leases are as follows:
Group
2015
2014
$’000
$’000
Not later than 1 year
1,757
1,759
Later than 1 year but not later than 5 years
305
2,006
2,062
3,765
