Annual Report 2019

ANNUAL REPORT 2019 243 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2019 42. OPERATING LEASE ARRANGEMENTS The Group as lessor: At the end of the reporting period, investment properties and properties for sale with carrying amount of HK$4,293,446,000 (2018: HK$3,187,707,000) and HK$19,994,000 (2018: HK$20,222,000) respectively were let out under operating leases. Gross rental income earned during the year is HK$155,331,000 (2018: HK$139,003,000) of which HK$138,765,000 (2018: HK$138,948,000) was derived from letting of investment properties. At the end of the reporting period, the Group had contracted with tenants for the future minimum lease payments under non-cancellable operating leases which fall due: 2019 2018 HK$’000 HK$’000 Within one year 118,639 101,837 In the second to fifth year inclusive 200,400 239,427 More than five years 83,839 108,488 402,878 449,752 Leases are negotiated and rentals are fixed for terms ranging from one to twenty years (2018: one to twenty years). The Group as lessee: Minimum lease payments paid under operating leases during the year. 2019 2018 HK$’000 HK$’000 Premises 413,817 366,768 Equipment 584 2 414,401 366,770 At the end of the reporting period, the Group had commitments for future minimum lease payments for premises under non-cancellable operating leases which fall due: 2019 2018 HK$’000 HK$’000 Within one year 100,550 80,568 In the second to fifth year inclusive 255,380 192,444 More than five years 56,292 27,453 412,222 300,465 Leases are negotiated for an average term of two years and rentals are fixed over the lease period.