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Leases
 12 Months Ended
Jun. 30, 2018
Leases  
Leases
21. Leases

The Group as lessee

 

Operating leases:

 

In the ordinary course of business, the Group leases property or spaces for administrative or commercial use both in Argentina and Israel under operating lease arrangements. The agreements entered into include several clauses, including but not limited, to fixed, variable or adjustable payments. Some leases were agreed upon with related parties (Note 29).

 

The future minimum payments that the Group must pay under operating leases are as follows:

 

  June 30, 2018   June 30, 2017   June 30, 2016
No later than one year 2,173   2,901   3,860
Later than one year and not later than five years 4,477   7,949   6,705
Later than five years 655   1,869   2,127
  7,305   12,719   12,692

 

Finance leases:

 

The Group is party to several financial lease agreements, mainly of equipment for administrative use in the ordinary course of business. The amounts involved are not material to any of the fiscal years under review.

 

The Group as lessor

 

Operating leases:

 

In the Shopping Malls segment and Offices segment of the Operations Center in Argentina and in the Real Estate segment of the Operations Center in Israel, the Group enters into operating lease agreements typical in the business. Given the diversity of properties and lessees, and the various economic and regulatory jurisdictions where the Group operates, the agreements may adopt different forms, such as fixed, variable, adjustable leases, etc. For example, in the Operations Center in Argentina, operating lease agreements with lessees of Shopping Malls generally include escalation clauses and contingent payments. In Israel, agreements tend to be agreed upon for fixed amounts, although in some cases they may include adjustment clauses. Income from leases are recorded in the Statement of Income under rental and service income in all of the filed periods.

 

Rental properties are considered to be investment property. Book value is included in Note 9. The future minimum proceeds under non-cancellable operating leases from Group’s shopping malls, offices and other buildings are as follows:

 

  June 30, 2018   June 30, 2017   June 30, 2016
No later than one year 4,813   4,437   3,137
Later than one year and not later than five years 22,371   12,451   13,361
Later than five years 8,290   4,632   4,247
  35,474   21,520   20,745

 

Finance leases:

 

The Group does not act as a lessor in connection with finance leases.