Notes to the
consolidated
financial statements
continued
12 Investment property continued
Overview
Business review
Governance
Financials
Investors
Ahold Delhaize Annual Report 2016
The fair value of investment property as of January 1, 2017, amounted to approximately €937 million (January 3, 2016: €772 million). Fair value
represents the price that would be received to sell an asset in an orderly transaction between market participants and has generally been
measured by using an income or market approach. Approximately 70% of Ahold Delhaize’s fair value measurements are categorized within
Level 2. The most significant inputs into this valuation approach are observable market retail yields and tenant rents to calculate the fair value.
The remaining fair value measurements which are categorized within Level 3 primarily include the fair value measurements based on the
Company’s own valuation methods and the fair value for certain mixed-use properties and properties held for strategic purposes. For certain
mixed-use properties and properties held for strategic purposes, Ahold Delhaize 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 2016 amounted to €76 million (2015: €70 million). Direct operating
expenses (including repairs and maintenance but excluding depreciation expense) arising from rental-income-generating and non-rent
generating investment property in 2016 amounted to €35 million (2015: €34 million).
