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23 CAPITAL COMMITMENTS
Expenditure contracted for at the reporting date but not recognised as liabilities is as follows:
Consolidated
2016
$'000
2015
$'000
Inventories - sections for sale
3,356
-
3,356
-
Other
19,100
8,477
19,100
8,477
Total capital commitments
22,456
8,477
Other commitments are for Tainui Group Holdings Limited and include the capital call commitment for investment in Pioneer
Capital for $4.1m and Waterman Fund for $15m. (2015: Pioneer $7.4m and livestock $1.1m).
24 OPERATING LEASES
Operating leases as lessee
Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:
Consolidated
2016
$'000
2015
$'000
Within one year
488
526
Later than one year but not later than five years
1,085
1,519
Later than five years
6,333
6,680
Commitments not recognised in the financial statements
7,906
8,725
There are no options to purchase attached to any lease agreements.
The operating leases that exist between the Trust and Tainui Group Holdings Limited for land owned by the Trust are rent free
until the first rent review date which is in 2019 and 2022.
Economic entity as lessor
Commitments for minimum lease receipts in relation to non-cancellable operating leases are receivable as follows:
Consolidated
2016
$'000
2015
$'000
Within one year
30,719
31,417
Later than one year and not later than five years
72,358
84,910
Later than five years
82,278
130,269
185,355
246,596
Operating leases (with the Trust as lessor) relate to the investment properties owned by the Trust and Economic entity with a
range of lease terms from less than one year through to ninety-nine years. Some of the longer term leases have perpetual rights
of renewal. All operating lease contracts contain market review clauses and the lessee will usually have an option to renew. The
lessees do not have any options to purchase the properties at the expiry of their lease period. The 2016 lease commitments do
not include fixed rent increases and CPI adjustments relating to The Base.
Recognition and measurement
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating
leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the statement of
comprehensive revenue and expense on a straight line basis over the period of the lease.