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Investment properties (Tables)
 12 Months Ended
Jun. 30, 2018
Investment Properties  
Schedule of investment properties

Changes in the Group’s investment properties according to the fair value hierarchy for the years ended June 30, 2018 and 2017 were as follows:

  June 30, 2018   June 30, 2017
  Level 2   Level 3   Level 2   Level 3
Fair value at the beginning of the year 8,158   91,795   6,594   76,109
Additions 1,335   1,954   592   2,059
Financial cost charged 22   60   3    -
Capitalized leasing costs 5   13   23   1
Amortization of capitalized leasing costs (i) (3)   (2)   (1)   (1)
Transfers 2   (2)    -    -
Transfers from / to property, plant and equipment (5)   1,705   (17)   173
Transfers to trading properties 353    -    -   (14)
Reclassification to assets held for sale  -   (521)    -   (71)
Deconsolidation (see Note 4.G.)  -   (4,489)    -    -
Assets incorporated by business combination  -   107    -    -
Reclassifications previous years  -    -    -   (224)
Disposals (179)   (392)   (179)   (41)
Cumulative translation adjustment  -   40,041    -   10,494
Net gain from fair value adjustment 6,437   16,332   1,143   3,310
Fair value at the end of the year 16,125   146,601   8,158   91,795

 

(i) Amortization charges of capitalized leasing costs were included in “Costs” in the Statements of Income (Note 23).
Schedule of investment property of the Group

The following is the balance by type of investment property of the Group as of June 30, 2018 and 2017:

 

  06.30.2018   06.30.2017
Rental properties 141,241   89,301
Undeveloped parcels of land 12,608   7,647
Properties under development 8,877   3,005
Total 162,726   99,953
Schedule of recognized in the Statements of Income

The following amounts have been recognized in the Statements of Income:

 

  June 30, 2018   June 30, 2017   June 30, 2016
Rental and services income 10,671   8,711   5,268
Direct operating expenses (3,046)   (2,838)   (1,888)
Development expenditures (1,731)   (1,397)   (11)
Net realized gain from fair value adjustment of investment properties 227   128   908
Net unrealized gain from fair value adjustment of investment properties 22,542   4,325   16,651
Schedule of fair value measurements of investment properties

The following table presents information regarding the fair value measurements of investment properties using significant unobservable inputs (Level 3):

 

        Sensitivity (i)
        06.30.18 06.30.17
Description Valuation technique Parameters Range fiscal year 2018 Increase Decrease Increase Decrease
Rental properties in Israel - Offices (Level 3) Discounted cash flows Discount rate 7.00% a 9.00% (1,556) 1,864 (1,040) 1,193
Weighted average rental value per square meter (m2) per month, in NIS NIS 63 3,037 (3,037) 1,772 (1,772)
Rental properties in Israel - Commercial use (Level 3) Discounted cash flows Discount rate 7.00% a 9.00% (1,322) 1,457 (759) 853
Weighted average rental value per square meter (m2) per month, in NIS NIS 87 1,640 (1,640) 1,003 (1,003)
Rental properties in Israel - Industrial use (Level 3) Discounted cash flows Discount rate 7.75% a 9.00% (477) 538 (316) 377
Weighted average rental value per square meter (m2) per month, in NIS NIS 31 996 (996) 599 (599)
Rental properties in USA - HSBC Building (Level 3) Discounted cash flows Discount rate 6.25% (1,212) 1,269 (715) 765
Weighted average rental value per square meter (m2) per month, in USD USD 73 2,654 (2,654) 1,497 (1,497)
Rental properties in USA - Las Vegas project (Level 3) Discounted cash flows Discount rate 8.50% (134) 141 (86) 91
Weighted average rental value per square meter (m2) per month, in USD USD 33 301 (301) 200 (200)
Shopping Malls in Argentina (Level 3) Discounted cash flows Discount rate 9.79% (5,046) 6,796 (3,948) 5,445
Growth rate 3.00% 3,104 (2,307) 2,464 (1,794)
Inflation (*) 4,035 (3,643) 2,684 (2,425)
Devaluation (*) (6,554) 9,831 (4,703) 7,054
Plot of land in Argentina (Level 3) Comparable with incidence adjustment Value per square meter (m2) 9,200 64 65 18 (52)
% of incidence 3.00% 2,165 (2,167) 1,168 (1,202)
Properties under development in Israel (Level 3) Estimated fair value of the investment property after completing the construction Weighted average construction cost per square meter (m2) in NIS 5,787 NIS/m2  -  -  -  -
Annual weighted average discount rate 7.00% a 9.00% (377) 377 (437) 437

 

(*) For the next 5 years, an average AR$ / US$ exchange rate with an upward trend was considered, starting at Ps. 19.51 (corresponding to the year ended June 30, 2018) and arriving at Ps. 49.05. In the long term, a nominal devaluation rate of 5.6% calculated based on the quotient between inflation in Argentina and the United States is assumed. The considered inflation shows a downward trend, which starts at 25.0% (corresponding to the year ended June 30, 2018) and stabilizes at 8% after 10 years. These premises were determined at the closing date of the fiscal year.

(i) Considering an increase or decrease of: 100 points for the discount and growth rate in Argentina, 10% for the incidence and inflation, 20% for the devaluation, 50 points for the discount rate of Israel and USA, and 1% for the value of the m2.