Page 30 - GMT and GMT Bond Issuer Annual Report 2017 v2

NOTES TO THE
1. INVESTMENTPROPERTY
Property income is earned from investment property leased to customers.
FINANCIAL STATEMENTS
1.1 Property income
$ million
Gross lease receipts
Service charge income
Straight line rental adjustments Amortisation of capitalised lease incentives Property income
2017 2016
153.5 153.1 20.5 20.7 1.1 1.1
(9.5) (8.9)
165.6 166.0
For the year ended 31 March 2017
ACCOUNTING POLICIES
Property income from investment property leased to customers under operating leases is recognised on a straight-line basis over the term of the lease to the extent that future rental increases are known with certainty. Accordingly, xed rental adjustments are accounted for to achieve straight-line income recognition. Where lease incentives are provided to customers, the cost of incentives is recognised over the lease term on a straight-line basis as a reduction to rental income.
Customers’ share of property operating expenses which are recoverable is recognised as service charge income.
1.2 Future contracted rentals receivable
Gross rental income that the Trust has contracted to receive in future years is set out below. These leases cannot be cancelled by the customer.
$ million
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6 and later
Total future contracted rentals receivable
1.3 Weighted average lease term
2017 2016
132.7 144.8 115.9 127.8 106.1 109.2
81.9 98.2 66.5 73.8 92.4 165.2
595.5 719.0
The weighted average lease term (“WALT”) represents the average lease term for leases existing at balance dates, which are weighted by the gross value of the rental income.
$ million
Weighted average lease term (years)
2017 2016
5.8 5.7
GOODMAN PROPERTY TRUST ANNUAL REPORT 2017 FINANCIAL STATEMENTS
28 NOTES TO THE FINANCIAL STATEMENTS