14 Investment Property
| In CHF million | ||||||
|---|---|---|---|---|---|---|
| 2021 | 2020 | |||||
| Balance as at 1 January | 38 120 | 34 866 | ||||
| Additions | 2 813 | 3 580 | ||||
| Capitalised subsequent expenditure | 238 | 206 | ||||
| Disposals | –935 | –1 351 | ||||
| Gains/losses from fair value adjustments | 1 505 | 847 | ||||
| Classification as assets held for sale | –69 | – | ||||
| Foreign currency translation differences | –439 | –28 | ||||
| Balance as at end of period | 41 234 | 38 120 | ||||
| of which pledged as security for mortgage loans | 2 342 | 1 464 | ||||
| Investment property consists of | ||||||
| completed investment property | 40 395 | 36 771 | ||||
| investment property under construction | 727 | 1 248 | ||||
| Right-of-use investment property | 112 | 101 | ||||
| Total investment property | 41 234 | 38 120 | ||||
Investment property held by the Group includes residential, commercial and mixed-use properties primarily located within Switzerland, and comprises both completed investment property and investment property under construction. Property held for investment purposes comprises land and buildings owned by the Group to earn rentals and/or for capital appreciation. Property that is used by the Group itself or leased to, and occupied by, another entity of the Group is classified as owner-occupied property under property and equipment. Property acquired with a view to its subsequent disposal in the near future is carried under assets held for sale.
Rental income from investment property was CHF 1361 million for the period ended 31 December 2021 (2020: CHF 1242 million). Operating expenses arising from investment property that generated rental income amounted to CHF 316 million for the period ended 31 December 2021 (2020: CHF 291 million).
The undiscounted lease payments to be received under operating leases were as follows.
| In CHF million | ||||
|---|---|---|---|---|
| 31.12.2021 | 31.12.2020 | |||
| Less than 1 year | 767 | 705 | ||
| 1 to 2 years | 761 | 653 | ||
| 2 to 3 years | 705 | 577 | ||
| 3 to 4 years | 656 | 532 | ||
| 4 to 5 years | 595 | 517 | ||
| More than 5 years | 2 410 | 1 870 | ||
| Total undiscounted lease payments | 5 893 | 4 855 | ||