The Group’s principal investment properties are Ocean Building, Ocean Towers, Keppel Towers, GE Tower, Capital Square and Prudential Tower in Singapore, and Saigon Centre and International Centre in Vietnam. The rental income from these properties is sensitive to changes in their occupancies and rental rates for lease renewals.

Assuming that average rental rates are maintained, a full year’s impact on rental income for every 1% change in the occupancies of the above mentioned properties is approximately $1.1 million.

In respect of committed leases and lease renewals, a full year’s impact on rental income for every 10% change in average rental rates resulting from the new rates negotiated is about $10.7 million.

The Group’s profits from property trading is sensitive to actual sales achieved and the percentage of physical completion recognised during the year.

Based on the actual sales contracts signed as at 31 December 2000, the incremental impact on Group pre-tax profit for every 5% of physical completion is about $0.1 million.

For every additional 1% of sales achieved for projects which have been launched, the additional contribution to Group pre-tax profit is an estimated $1.8 million. This is based on physical completion projected and sales projected for the year, and the completed properties available for sale which the Group had at end-2000.