Page 64 - Q4-2024-EN

AL-MAZAYA HOLDING COMPANY - K.S.C. (PUBLIC)
AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2023
(All amounts are in Kuwaiti Dinars)
Following are the unobservable inputs and sensitivity analysis for the assets measured under level 3:
a) Financial assets:
Fair value as of
2023
Financial assets at FVTPL
Financial assets at FVTOCI
b) Non-financial assets:
Fair value as of
2023
Investment properties (a)
Investment properties (a)
Valuation Significant
methods and unobservable Sensitivity of unobservable
2022 main inputs inputs inputs to fair value
The increase (decrease) of
Price to book value multiple
by 5% would increase
(decrease) fair value by KD
Nil assuming all other
factors remain constant,
while the increase
(decrease) of illiquidity
discount by 5% would
Price to book value decrease (increase) fair
Price multiples multiple of 0.6 and value by KD Nil assuming all
and adjusted Illiquidity discount other factors remain
- 155,971 book value (40% to 65%) constant.
The increase (decrease) of
Price to book value multiple
by 5% would increase
(decrease) fair value by KD
54,701 assuming all other
factors remain constant,
Relative weight while the increase
of price to book (decrease) of illiquidity
value, parallel discount by 5% would
market prices decrease (increase) fair
and adjusted Price to book value value by KD 157,319
NAV valuation multiple of 0.5 and assuming all other factors
2,543,514 7,787,909 methods Illiquidity of 20% remain constant.
Valuation Sensitivity of
methods and Significant unobservable inputs to
2022 main inputs unobservable inputs fair value
Capitalization rate
from 7% to 9%
according to the
nature and property The increase (decrease)
location and current in the capitalization rate
rentals earned from the (decrease) increase
the properties and the in the property’s fair
Income expected rentals for value, assuming all other
71,559,195 78,374,965 approach temporary vacancies factors remain constant.
The increase (decrease)
in the discount and
vacancy rates, the
(decrease) increase in the
properties’ fair value,
Discount rate from 7% assuming all other factors
to 9.5%, vacancy remain constant.
rates from 5% to 25% The increase (decrease)
as per the property in the growth rate, the
nature and its increase (decrease) in the
expected occupancy, properties’ fair value,
Discounted and a growth rate assuming all other factors
34,300,599 30,974,839 cash flows from 2% to 5% remain constant.
60