Annual Report - Hongkong Land

Notes to the Financial Statements
5 Revenue
2012 2011
US$m
US$m
Rental income 745.5 700.3
Service income 117.2 110.9
Sales of properties 252.1 412.5
1,114.8 1,223.7
Service income includes service and management charges and hospitality service income.
Total contingent rents included in rental income amounted to US$12.9 million (2011: US$12.5 million).
2012 2011
US$m
US$m
The future minimum rental payments receivable under non-cancellable leases
are as follows:
Within one year 701.0 633.4
Between one and two years 503.8 481.5
Between two and five years 410.5 479.1
Beyond five years 59.4 79.1
1,674.7 1,673.1
Generally the Group’s operating leases are for terms of three years or more.
6 Net Operating Costs
2012 2011
US$m
US$m
Cost of sales (234.6) (320.2)
Other income 4.9 4.0
Administrative expenses (84.8) (75.8)
(314.5 ) (392.0 )
The following credits/(charges) are included in net operating costs:
Cost of properties for sale recognised as expense (102.0) (229.3)
Operating expenses arising from investment properties (140.1) (135.1)
Reversal of writedowns on properties for sale 7.5 44.2
Depreciation of tangible assets (2.1) (1.7)
Staff costs
– salaries and benefits in kind (85.5) (68.7)
– defined contribution pension plan (2.8) (2.6)
– defined benefit pension plan (see Note 16) (0.1) 0.1
(88.4) (71.2)
Auditors’ remuneration
– audit (1.3) (1.1)
– non-audit services (0.2) (0.2)
(1.5 ) (1.3 )
The number of employees at 31st December 2012 was 1,347 (2011: 1,257).
42 Hongkong Land