Investment Properties

12 Months Ended

Dec. 31, 2024

Disclosure of detailed information about investment property [abstract]

19.

INVESTMENT PROPERTIES


	December 31
	2023		2024
	NT$		NT$
	(In Millions)
Carrying amount
Investment properties	$	9,805	$	12,302


	Investment Properties
	NT$
	(In Millions)
Cost
Balance on January 1, 2022	$	10,663
Additions		18
Reclassification		99
Balance on December 31, 2022	$	10,780
Accumulated depreciation and impairment
Balance on January 1, 2022	$	(1,000	)
Depreciation expense		(44	)
Reversal of impairment loss		107
Reclassification		(39	)
Balance on December 31, 2021	$	(976	)
Balance on December 31, 2021, net	$	9,804
Cost
Balance on January 1, 2023	$	10,780
Additions		54
Reclassification		328
Balance on December 31, 2023	$	11,162
Accumulated depreciation and impairment
Balance on January 1, 2023	$	(976	)
Depreciation expense		(45	)
Impairment loss		(336	)
Balance on December 31, 2023	$	(1,357	)
Balance on December 31, 2023, net	$	9,805
Cost
Balance on January 1, 2024	$	11,162
Additions		4
Reclassification		2,427
Balance on December 31, 2024	$	13,593
Accumulated depreciation and impairment
Balance on January 1, 2024	$	(1,357	)
Depreciation expense		(45	)
Reversal of impairment loss		139
Reclassification		(28	)
Balance on December 31, 2024	$	(1,291	)
Balance on December 31, 2024, net	$	12,302

After the evaluation of land and buildings by comparing the recoverable amount which represented the fair value less costs of disposal with the carrying amount, the Company recognized reversal of impairment losses of $107 million and $139 million for the years ended December 31, 2022 and 2024, respectively, and an impairment loss of $336 million for the year ended December 31, 2023. The impairment loss and the reversal of impairment loss were included in “other income and expenses” in the consolidated statements of comprehensive income.

Depreciation expense is computed using the straight-line method over the following estimated service lives:


Land improvements		15-30 years
Buildings
Main buildings		8-60 years
Other building facilities		10-35 years

The fair values of the Company’s investment properties as of December 31, 2023 and 2024 were determined by Level 3 fair value measurements inputs based on the appraisal reports conducted by independent appraisers. Those appraisal reports are based on the comparison approach, income approach or cost approach. Key assumptions and the fair values were as follows:


		December 31
		2023		2024
		NT$		NT$
		(In Millions)
Fair value	$	$24,237	$	$41,285
Overall capital interest rate		1.43%-5.51%		1.47%-5.81%
Profit margin ratio		10%-20%		12%-20%
Discount rate		—		0%-10%
Capitalization rate		0.23%-2.28%		1.12%-2.13%

All of the Company’s investment properties are held under freehold interest.

The future aggregate lease collection under operating lease for investment properties is as follows:


	December 31
	2023		2024
	NT$		NT$
	(In Millions)
Year 1	$	168	$	274
Year 2		157		248
Year 3		134		217
Year 4		105		192
Year 5		83		190
Onwards		435		1,306
	$	1,082	$	2,427