|Summary of CICT Results|
|FY 2019||FY 2020|
|1 January to
30 June 2020
|1 January to 30 June 2021|
|Gross Revenue (S$'000)||786,736||745,209||318,387||645,657|
|Net Property Income (S$'000)||558,215||512,740||216,352||472,163|
|Amount Available for Distribution (S$'000)||461,901||375,645||160,935||338,061|
|Distributable Income (S$'000)||441,596(1)||369,384(2)||109,720(3)||335,894(4)|
|Distribution Per Unit ("DPU") (cents)
For the period
- S$20.3 million comprising S$13.6 million and S$6.7 million received from CLCT and Infinity Office Trust ("IOT") respectively in FY 2019 had been retained for general corporate and working capital purposes.
- For FY 2020, RCS Trust had released the remaining S$6.25 million, part of the S$12.5 million (of which S$6.25 million was released in 3Q 2020) of taxable income available for distribution previously retained in 1H2020. S$12.5 million received from CLCT had been retained for general corporate and working capital purposes.
- For 1H 2020, in view of the challenging operating environment due to COVID-19 pandemic, CICT had retained S$46.4 million of its taxable income available for distribution to Unitholders. In addition, S$4.8 million received from CLCT had been retained for general corporate and working capital purposes.
- S$2.2 million comprising S$0.8 million and S$1.4 million received from CLCT and Sentral Reit respectively had been retained for general corporate and working capital purposes.
|Statements of Total Return||Group(1)|
|Gross rental income(2)||612,849||296,175||NM|
|Car park income||14,047||6,276||NM|
|Property management fees||(22,020)||(11,792)||86.7|
|Property operating expenses(6)||(173,494)||(102,035)||70.0|
|Net property income||472,163||216,352||NM|
|Interest and other income||4,038||902||NM|
|Net income before share of results of associate and joint ventures||328,668||140,926||NM|
|Share of results (net of tax) of joint ventures(10)||6,731||(27,960)||NM|
|Net change in fair value of investment properties||-||(279,644)||NM|
|Total return/(loss) for the period before taxation||335,399||(166,678)||NM|
|Total return for the period after taxation||327,988||(166,678)||NM|
|Total return for the period||327,988||(166,678)||NM|
- The Merger was completed on 21 October 2020. The financials of CCT and its subsidiaries (CCT Group) are consolidated into the Group's financial results with effect from 21 October 2020. In addition, RCS Trust, a joint venture of CICT prior to the Merger, is now a direct wholly owned subsidiary of CICT upon the completion of the Merger as well.
- Gross rental income for 1H 2021 and 1H 2020 includes rental waivers granted by landlord to tenants affected by COVID-19 of S$18.9 million and S$76.5 million respectively.
- Other income comprises various types of miscellaneous income, other than rental income, ancillary to the operation of investment properties. This includes income earned from bulk energy savings, tenants' recoveries, atrium space and advertisement panels.
- 1H 2021 gross revenue for CICT properties at S$645.7m was higher than 1H 2020 by S$327.3m. Excluding the effect of the Merger which consolidates the financial results of CCT Group and RCS Trust with effect from 21 October 2020, 1H 2021 gross revenue for CICT properties at S$360.6m was higher than 1H 2020 by S$42.2m or 13.2%. This was mainly due to higher gross rental income arising from lower rental waivers given, as well as higher rental on gross turnover and car park income, partially offset by lower other income.
Other property operating expenses comprise utilities, property management reimbursements, marketing, maintenance and other expenses that are ancillary to the operation of investment properties. Included as part of the other property operating expenses are the following:
Group 1H 2021
Depreciation and amortisation 2,507 1,062 NM Amount written back for impairment loss on receivables (1,500) - NM
- Property operating expenses for 1H 2021 were S$173.5 million, an increase of S$71.5 million or 70.0% from 1H 2020. Excluding the effect of the Merger, the property operating expenses was higher than 1H 2020 by S$3.1m mainly due to higher property management fees and property management reimbursements, partially offset by lower property tax and maintenance expenses.
- This relates to distribution income from equity investment in CLCT and Sentral Reit.
- Management fees at S$40.8 million were S$18.7 million or 84.4% higher than 1H 2020. Excluding the effect of the Merger, the management fees were higher compared to same period last year as a result of higher NPI mainly due to lower rental waivers given to tenants in 1H 2021.
- Finance costs includes the interest expense and amortisation of transaction cost in relation to the borrowings drawn down to fund the Merger. In 1H 2021, finance costs at S$105.1 million were S$48.2 million or 84.7% higher than 1H 2020. Excluding the effect of the Merger, the finance costs was slightly lower and this was mainly due to the refinancing of borrowings at lower interest rate.
In 1H 2021, share of results (net of tax) of joint ventures relates to 50.0% interest in OGS LLP, 45.0% interest in Glory Office Trust, 45.0% interest in Glory SR Trust and 30.0% interest in IOT. In 1H 2020, this relates to the Group's 40.0% interest in RCS Trust and 30.0% interest in IOT.
Details are as follows:
Group 1H 2021
Share of results (net of tax) of joint ventures - Gross revenue(10a) 12,983 39,064 (66.8) - Property operating expenses (3,238) (8,838) (63.4) - Net property income 9,745 30,226 (67.8) - Finance costs (1,912) (6,977) (72.6) - Net change in fair value of investment properties - (48,212) NM - Others(10b) (1,102) (2,997) (63.2) 6,731 (27,960) NM
10a. In 1H 2020, this includes rental waivers granted by RCS Trust to its tenants affected by COVID-19 of S$4.3 million (the Group's 40.0% interest).
10b. Included management fees.
NM - Not meaningful
|30 Jun 2021
|31 Dec 2020
|30 Jun 2021
|31 Dec 2020
|Plant & equipment||6,661||7,064||(5.7)||2,403||2,638||(8.9)|
|Equity instrument at fair value(4)||216,823||2218,686||(0.9)||182,731||185,399||(1.4)|
|Deferred tax assets(6)||10,237||10,412||(1.7)||-||-||-|
|Other non-current asset||1,966||1,975||(0.5)||1,076||890||20.9|
|Trade & other
|Cash & cash equivalents(7)||350,242||183,617||90.7||143,289||29,320||NM|
|Total current assets(8)||429,164||272,983||57.2||290,079||111,783||NM|
|Trade & other payables||225,779||293,008||(22.9)||96,932||134,442||(27.9)|
|Current portion of security deposits||89,377||90,533||(1.3)||46,070||41,450||11.1|
|Loans & borrowings(9)||697,876||931,932||(25.1)||189,924||414,492||(54.2)|
|Provision for taxation||7,028||7,435||(5.5)||209||-||NM|
|Total current liabilities(8)||1,024,271||1,333,833||(23.2)||335,110||592,392||(43.4)|
|Trade & other payables(11)||1,382||1,467||(5.8)||495,000||633,900||(21.9)|
|Loans & borrowings(12)||8,051,237||7,794,313||3.3||4,906,803||4,132,420||18.7|
|Non-current portion of security deposits||163,391||147,394||10.9||71,286||69,474||2.6|
|Deferred tax liabilities(13)||8,411||4,706||78.7||-||-||-|
|Total non-current liabilities||8,257,089||8,014,607||3.0||5,484,038||4,852,216||13.0|
Investment properties are based on valuations performed by independent professional valuers as at 31 December 2020, adjusted for capital expenditure capitalised in 1H 2021. In addition, the Group has recognised its existing operating lease arrangements where the Group is a lessee as right of use assets in accordance with the principles of FRS 116 Leases.
As at 30 June 2021, in consultation with external valuers, management conducted an internal assessment of the valuation of the investment properties, including considering any significant changes in operating performance of the properties, and movement in market data such as discount rates and capitalisation rates. Based on the assessment, management is of the view that the fair value of the investment properties has not materially changed from 31 December 2020 valuation.
The outbreak of the novel coronavirus ("COVID-19") has impacted market activity in many property sectors. As the impact of COVID-19 is fluid and evolving, significant market uncertainty exists. Consequently, the valuations of investment properties are currently subject to material valuation uncertainty. The carrying amounts of the investment properties were current as at 30 June 2021 only. Values may change more rapidly and significantly given the uncertain market conditions.
For illustrative purpose, the impact arising from a decline of every 1% in the valuation of the Group's portfolio of properties is as follows:
30-Jun-21 Illustrative Impact Pro forma Properties Carrying Value (S$ million) 21,427.9 (214.3) 21,213.6 Net Asset Value (S$) 2.05 (0.03) 2.02 Aggregate Leverage (%) 40.5 0.4 40.9
The above illustration (i) assumes that all other variables are constant and (ii) is a sensitivity analysis for illustrative purposes on the impact of a decline in valuation of the properties and does not represent the Manager's views on where the valuations might end up.
The Manager will continue to closely monitor the evolving situation and perform property valuation (i) for material assets, when there is indication of material change and objective, appropriate valuation can be reliably obtained or (ii) by the end of the financial year, whichever is the earlier.
- This include unitholders' loans to subsidiaries.
- Joint ventures refer to 30.0% interest in IOT, 50.0% in OGS LLP, 45.0% interest in Glory Office Trust and 45.0% interest in Glory SR Trust (including unitholder's loans). Prior to 21 October 2020, RCS Trust was accounted for as a joint venture of the Group.
- Equity investment at fair value as at 30 June 2021 relates to CICT's 8.8% interest in CLCT at fair value of S$182.7 million and CICT's 10.9% interest in Sentral Reit at fair value of S$34.1 million.
- Financial derivative assets and liabilities relate to fair value of the cross currency, interest rate swaps and forward exchange contracts.
- Deferred tax asset relates to the temporary difference arising from the fair value adjustment recognised on the borrowings of CCT Group in relation to the Merger.
- The increase in cash and cash equivalents is mainly due to the increase in cash flows from operating activities contributed by the higher NPI as a result of the Merger.
- Notwithstanding the net current liabilities position, based on the Group's available financial resources, the Manager is of the opinion that the Group will be able to refinance its borrowings and meet its current obligations as and when they fall due.
- As of 30 June 2021, loans and borrowings under current liabilities relate to Medium Term Notes of S$100.0 million, HKD 1.15 billion and JPY6.3 billion as well as bank borrowings due in the next 12 months.
- This relates to the lease liabilities recognised by the Group on its existing operating lease arrangements in accordance with the principles of FRS 116 Leases.
- This relates to Gallileo Co. and MAC Co. at Group and amount due to subsidiary (non-trade) at Trust.
- As of 30 June 2021, loans and borrowings under non-current liabilities relate mainly to the fixed and floating rate notes issued by CMT MTN Pte. Ltd. through its US$3.0 billion Euro-Medium Term Note Programme and S$7.0 billion Multicurrency Medium Term Note Programme, as well as fixed and floating notes issued by CCT MTN Pte. Ltd. through its S$2.0 billion Medium Term Note Programme and unsecured and secured bank borrowings of the Group.
On 1 February 2021, CMT MTN Pte. Ltd. ("CMT MTN"), a wholly owned subsidiary of CICT, issued HKD713.0 million fixed rate notes due 1 February 2033 through its S$7.0 billion Multicurrency Medium Term Note Programme ("MTN Programme") at 2.53% per annum. CMT MTN has entered into swap transactions to swap the HKD proceeds into Singapore dollar proceeds of S$125.0 million at fixed interest rate of 2.15% per annum.
On 8 March 2021, CMT MTN issued S$460.0 million fixed rate notes due 8 March 2028 through its MTN Programme at 2.10% per annum. The proceeds from these two issuances have been used to refinance the existing borrowings of the Group.
- Deferred tax liabilities relate to the temporary differences in respect of the fair value changes of
overseas investment properties held by the Group.
NM - not meaningful