170 | Just Group PLC | Annual Report and Accounts 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
14. INVESTMENT PROPERTY
Year ended 31 December 2024 £m
Year ended 31 December 2023 £m
At 1 January
32
40
Net loss from fair value adjustment
(5)
(8)
At 31 December
27
32
Investment properties are leased to commercial tenants. Investment properties are valued using discounted cash flow analysis using assumptions based on the repayment of the underlying loan. The valuation model discounts the expected future cash flows using a discount rate which includes a credit spread allowance associated with that asset. The redemption and default assumptions are derived from the assumptions for the Group’s bond portfolio. The Group’s investment property is held by the Group’s Jersey Property Unit Trust (“JPUT”). Rental income received in the year from investment properties was £1m (2023: £1m). Minimum lease payments receivable on leases of investment properties are as follows (undiscounted cash flows):
Year ended 31 December 2023 (restated)¹ £m
Year ended 31 December 2024 £m
Within 1 year
1 1 1 1 1
1 1 1 1 1
Between 1 and 2 years Between 2 and 3 years Between 3 and 4 years Between 4 and 5 years
Later than 5 years
265 270
266 271
Total
1 Amounts have been restated to reflect the revised contractual lease term.
15. FINANCIAL INVESTMENTS The Group’s financial investments that are measured at fair value through the profit or loss are either managed within a fair value business model, or mandatorily measured at fair value. The Group’s financial investments that are measured at amortised cost are held within a business model where the intention of holding the instruments is to collect solely payments of principal and interest. The table below summarises the classification of the Group’s financial assets and liabilities. Analysis of financial investments 31 December 2024 £m 31 December 2023 £m Units in liquidity funds 1,792 1,141 Investment funds 399 495 Debt securities and other fixed income securities – Debt securities 12,860 12,269 – Infrastructure and Long income real estate debt securities¹ 3,150 1,385 16,010 13,654 Deposits with credit institutions 808 706 Loans secured by commercial mortgages 809 764 Long income real estate 2 787 779 Infrastructure loans 2 1,246 1,113 Other loans 195 164 Total investments measured at FVTPL – designated 22,046 18,816 Lifetime mortgages 5,637 5,681 Derivative financial assets 2,756 2,377 Total investments measured at FVTPL – mandatory 8,393 8,058 Gilts – subject to repurchase agreements 3,951 2,549 Total investments measured at amortised cost 3,951 2,549 Total financial investments 34,390 29,423 1. Includes £2,266m (2023: £1,146m) of Infrastructure debt securities and £884m (2023: 239m) of Long income real estate debt securities. 2. Long income real estate includes £157m (2023: £176m) residential and £630m (2023: £603m) commercial ground rents. Long income real estate of £119m was transferred to infrastructure loans as a result of a decision to reclassify certain assets whose security relied on the property operator rather than the property itself.
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