Page 189 - S P Setia Annual Report 2016
P. 189

S P Setia Berhad Group                                                                                187
          Annual Report 2016




                                                                               Notes To The Financial Statements

                                                                                  For The Financial Year Ended 31 December 2016

          38.  COMMITMENTS
              (a)   Operating lease commitments


                   The Group as lessee

                   The Group leases premises from various parties under operating leases. These leases are cancellable and typically run for a period
                   ranging from 1 to 3 years, with the option to renew upon expiry. None of the leases includes contingent rentals. There are no
                   restrictions placed upon the Group by entering into these leases.

                   Future minimum rentals payable under non-cancellable operating leases at the reporting date are as follows:

                                                                                                     Group
                                                                                                  2016          2015
                                                                                                RM’000        RM’000
                   Not later than one year                                                        1,258         1,400
                   Later than one year but not later than five years                              1,611          824
                                                                                                 2,869          2,224

                   The Group as lessor

                   The Group leases out its investment properties to third parties under non-cancellable operating leases. These leases typically run
                   for a period of 2 to 30 years with the option to renew upon expiry. Certain of the leases include contingent rental arrangements
                   computed based on sales achieved by tenants.

                   Future minimum rentals receivable under non-cancellable operating leases at the reporting date are as follows:

                                                                                                     Group
                                                                                                  2016          2015
                                                                                                RM’000        RM’000

                   Not later than one year                                                       22,851        16,373
                   Later than one year but not later than five years                            62,354         54,280
                   Later than five years                                                        324,261       358,268
                                                                                               409,466        428,921
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