12 Investment property (continued)
Ahold Annual Report 2012 100
Ahold at a glance
Our strategy
Our performance
Governance
Financials
Investors
Notes to the consolidated
financial statements
A significant portion of Ahold's investment property is comprised of shopping centers containing both an Ahold store and third-party retail units. The third-party retail units generate rental
income, but are primarily of strategic importance to Ahold in its retail operations. Ahold recognizes the part of a shopping center leased to a third-party retailer as investment property, unless
it represents an insignificant portion of the property.
In 2012, Ahold recognized impairment losses of €7 million. These were related to Ahold USA (€5 million) and Other Europe (€2 million).
The carrying amount of investment property includes an amount related to assets held under finance leases and financings of €38 million and €50 million (January 1, 2012: €40 million and
€53 million), respectively. Ahold does not have legal title to these assets. Company-owned investment property with a carrying amount of €66 million (January 1, 2012: €70 million) has been
pledged as security for liabilities, mainly for loans.
The fair value of investment property as of December 30, 2012 amounted to approximately €757 million (January 12012: €835 million). Fair value represents the price at which a property
could be sold to a knowledgeable, willing party, and has generally been determined based on internal appraisals, using discounted cash flow projections. For mixed use properties and
properties held for strategic purposes, Ahold cannot determine the fair value of the investment property reliably. In such cases, the fair value is assumed to be equal to the carrying amount.
Rental income from investment property included in the income statement in 2012 amounted to €69 million (201 1€72 million). Direct operating expenses (including repairs and
maintenance but excluding depreciation expense) arising from rental-income-generating and non-rent-generating investment property in 2012 amounted to €36 million (2011€30 million).
