Financial Highlights

Summary of CICT Results
FY 2019 FY 2020 2020
1 July to
30 September		 21 October to
31 December1
Actual Actual Actual Actual
Gross Revenue (S$'000) 786,736 745,209 150,277 233,525
Net Property Income (S$'000) 558,215 512,740 104,449 161,542
Amount Available for Distribution (S$'000) 461,901 375,645 81,922 109,212
Distributable Income (S$'000) 441,596(2) 369,384(3) 114,294(4) 112,794(5)
Distribution Per Unit ("DPU") (cents)

For the period

11.97¢

8.69¢

3.10¢

1.74¢

Notes

  1. The clean-up distribution income of S$32.6 million (or DPU of 0.89 cents) for the period from 1 October 2020 to 20 October 2020 (“Clean-up Distribution”) had been paid on 19 November 2020. The Clean-up Distribution comprised wholly taxable income of CapitaLand Integrated Commercial Trust (“CICT”) and it included release of S$9.0 million, part of the S$46.4 million (of which S$36.4 million was released in 3Q 2020) of taxable income available for distribution previously retained in 1H 2020, to holders of units in CICT (“Units” and holders of units, “Unitholders”).
    2,780,549,536 new Units were issued as consideration units for the Merger on 28 October 2020. DPU for the period from 21 October 2020 to 31 December 2020 was based on an enlarged unit base.
  2. Capital distribution and tax-exempt income distribution of S$13.6 million received from CapitaLand Retail China Trust (“CRCT”) and capital distribution of S$6.7 million received from Infinity Office Trust (“IOT”) in FY 2019 had been retained for general corporate and working capital purposes.
  3. 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. Capital distribution and tax-exempt income distribution of S$12.5 million received from CRCT for the period from 14 August 2019 to 25 November 2020 had been retained for general corporate and working capital purposes.
  4. In 3Q 2020, CICT had released S$36.4 million, part of the S$46.4 million of taxable income available for distribution retained in 1H 2020 to Unitholders. Tax-exempt income distribution of S$4.0 million for the period from 1 January 2020 to 30 June 2020 received from CRCT was retained for general corporate and working capital purposes.
  5. For distribution period 21 October 2020 to 31 December 2020, CICT had released the remaining S$1.0 million, part of the S$46.4 million (of which S$45.4 million was released in distribution period 1 July 2020 to 20 October 2020) of taxable income available for distribution previously retained in 1H 2020 to Unitholders. In addition, RCS Trust had also 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. Capital distribution and tax-exempt income distribution of S$3.7 million for the period from 1 July 2020 to 25 November 2020 received from CRCT was retained for general corporate and working capital purposes
Statements of Total Return Group(1) Trust
4Q 2020
S$'000		 4Q 2019
S$'000		 %
Change		 4Q 2020
S$'000		 4Q 2019
S$'000		 %
Change
Gross rental income(2) 261,029 187,540 39.2 131,352 152,631 (13.9)
Car park income 7,192 5,136 40.0 4,559 4,669 (2.4)
Other income(3) 8,324 10,688 (22.1) 4,547 9,004 (49.5)
Gross revenue 276,545 203,364 36.0 140,458 166,304 (15.5)
Property management fees (9,367) (7,592) 23.4 (5,155) (6,196) (16.8)
Property tax (22,285) (16,889) 31.9 (11,076) (13,517) (18.1)
Other property
operating expenses(4)		 (45,828) (56,889) 38.8 (31,357) (32,785) (4.4)
Property operating expenses (84,606) (62,621) 35.1 (47,588) (52,498) (9.4)
Net property income 191,939 140,743 36.4 92,870 113,806 (18.4)
Interest and other income 1,321 1,056 25.1 14,355 14,600 (1.7)
Investment income(5) 3,668 - NM 69,871 22,878 NM
Management fees (17,690) (12,632) 40.0 (9,042) (10,095) (10.4)
Trust expenses (1,995) (1,033) 93.1 (1,093) (948) 15.3
Transaction costs relating to the Merger(6) (4,202) - NM (2,057) - NM
Finance costs(7) (48,093) (29,960) 60.5 (30,720) (29,764) 3.2
Net income before share of results of associate and joint ventures(8) 124,948 98,174 27.3 134,184 110,477 21.5
- Joint ventures(9) 4,234 27,335 (84.5) - - -
Net income 129,182 125,509 2.9 134,184 110,477 21.5
Net change in fair value of investment properties(10) (113,976) 113,098 NM 9,229 97,729 (90.6)
Allowance for impairment (loss)/written back(11) - - - (7,291) - NM
Gain relating to negative goodwill arising from the Merger(12) 430,003 - NM - - -
Total return for the period before taxation 445,209 238,607 86.6 136,122 208,206 (34.6)
Taxation 61 - NM - - -
Total return for the period after taxation 445,270 238,607 86.6 136,122 208,206 (34.6)
Attributable to
Unitholders 445,349 238,607 86.6 136,122 208,206 (34.6)
Non-controlling interests (79) - NM - - -
Total return for the period 445,349 238,607 86.6 136,122 208,206 (34.6)
Distribution statements
Total return attributable to unitholders 445,349 238,607 86.6 136,122 208,206 (34.6)
Net tax and other adjustments (13) (317,448) (146,039) NM 2,916 (101,292) NM
Distribution from joint ventures (14) 4,887 14,346 (65.9) - - -
Amount available for distribution
to Unitholders		 132,788 106,914 24.2 139,038 106,914 30.0
Distributable income to
Unitholders(15)		 145,370 114,614 26.8 145,370 114,614 26.8

Notes

  1. The Merger was completed on 21 October 2020. CCT and its subsidiaries’ financials are consolidated into CICT 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.
  2. For 4Q 2020, this includes rental waivers granted by landlord to tenants affected by the COVID-19 pandemic of S$22.4 million. This amount includes rental waivers for properties acquired as part of the Merger from 21 October 2020 to 31 December 2020.
  3. 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.

  4. 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 Trust
    4Q 2020
    S$'000    		 4Q 2019
    S$'000    		 %
    Change    		 4Q 2020
    S$'000    		 4Q 2019
    S$'000    		 %
    Change
    Depreciation and amortisation 698 719 (2.9) 490 608 (19.4)
    Allowance/(write back) for doubtful debts 1,817 (1) NM 1,067 (1) NM

  5. At Group level, this relates to distribution income from equity investment in CRCT. At Trust level, this relates to distribution income from subsidiaries, joint ventures and equity investment in CRCT
  6. The transaction costs were incurred in relation to the Merger
  7. This includes the interest expense and amortisation of transaction cost in relation to the borrowings drawn down to fund the Merger as well as interest expense on lease liabilities in relation to the Group’s existing operating lease arrangements, in accordance with the principles of FRS 116 Leases.
  8. For 4Q 2020, this includes government grant income and government grant expense, in relation to the rental relief from Singapore Government, of S$24.7 million and S$18.7 million respectively, recognised in accordance with the principles of FRS 20 Accounting for Government Grants and Disclosure of Government Assistance.

  9. This relates to the Group’s 40.0% interest in RCS Trust (for period from 1 October 2020 to 20 October 2020) and 30.0% interest in IOT. It also includes 50.0% interest in OGS LLP, 45.0% interest in Glory Office Trust and 45.0% interest in Glory SR Trust for the period from 21 October 2020 to 31 December 2020, upon the completion of the Merger.
    Details are as follows:


      Group
    4Q 2020
    S$'000    		 4Q 2019
    S$'000    		 %
    Change
    Share of results (net of tax) of joint ventures
    - Gross revenue(9a) 9,185 23,326 (60.6)
    - Property operating expenses (2,331) (6,110) (61.9)
    - Net property income 6,854 17,216 (60.2)
    - Finance costs (1,537) (3,577) (57.0)
    - Net change in fair value of investment properties (305) 15,284 NM
    - Others(9b) (778) (1,588) (51.0)
      4,234 27,335 (84.5)

    9a. For 4Q 2020, this includes rental waivers granted by RCS Trust to its tenants affected by COVID-19 of S$0.5 million (the Group’s 40.0% interest) for period 1 October 2020 to 20 October 2020 as well as rental waivers granted by OGS LLP to its tenants affected by COVID-19 of S$0.2 million.
    9b. Included management fees.

  10. This includes the fair value loss on the right of use assets classified as part of investment properties.
  11. For 4Q 2020, this relates to allowance for impairment loss in respect of CICT’s interest in IMT and MSO Trust, as well as write back of impairment loss in respect of CICT’s interest in BMT.
  12. Pursuant to the Merger, this refers to the discount on net asset value of CCT Group. There is no impact on the distribution income to Unitholders.

  13. Included in the net tax and other adjustments are the following:

      Group Trust
    4Q 2020
    S$'000    		 4Q 2019
    S$'000    		 %
    Change    		 4Q 2020
    S$'000    		 4Q 2019
    S$'000    		 %
    Change
    Management fees paid and payable in Units 13a 6,194 - NM 2,845 - NM
    - Trustee's fees 705 420 67.9 389 347 12.1
    - Amortisation of transaction costs 1,287 775 66.0 908 775 17.1
    - Net change in fair value of investment properties 113,976 (113,098) NM (9,229) (97,729) (90.6)
    - (Profit)/Loss from subsidiaries (125,506) 457 NM - - -
    - Share of result (net of tax) of joint ventures (4,234) (27,335) (84.5) - - -
    - Taxation (61) - NM - - -
    - Allowance for impairment loss/(written back) - - - 7,291 - NM
    - Gain relating to negative goodwill arising from the Merger (430,003) - NM - - NM
    - Temporary differences and other adjustments 13b 7,577 (7,258) NM 1,075 (4,695) NM
    - Rollover adjustments 13c (462) - NM (363) - NM
    - Effect of non-controlling interests arising from the above 79 - NM - - -
    Net tax and other adjustments (317,448) (146,039) NM 2,916 (101,292) NM

    13a. This relates to 50.0% of base and performance components of the management fees for period from 3 November 2020 to 31 December 2020.
    13b. For 4Q 2020, this includes transaction cost in relation to the Merger, which is added back as a non-tax deductible expense.
    13c. For 4Q 2020, this is the difference between taxable income previously distributed by CICT and RCS Trust and the quantum finally agreed with Inland Revenue Authority of Singapore (“IRAS”) for YA 2016 and YA 2019 respectively.

  14. For 4Q 2020, this relates to CICT’s 40.0% interest in RCS Trust for period from 1 October 2020 to 20 October 2020 as well as CICT’s 50.0% interest in OGS LLP for period from 21 October 2020 to 31 December 2020. For 4Q 2019, this relates to CICT’s 40.0% interest in RCS Trust
  15. In 4Q 2020, CICT had released S$10.0 million, part of the S$46.4 million of taxable income available for distribution retained in 1H 2020 to Unitholders. RCS Trust had also released S$6.25 million, part of the S$12.5 million of taxable income available for distribution retained in 1H 2020. Capital distribution and tax-exempt income distribution of S$3.7 million for the period from 1 July 2020 to 25 November 2020 received from CRCT was retained for general corporate and working capital purposes.

    In 4Q 2019, CICT released S$7.7 million of its taxable income available for distribution retained in 1H 2019 to Unitholders.

    NM – not meaningful

As at 31 Dec 2020 vs 31 Dec 2019

  Group1 Trust
  31 Dec 2020
S$'000		 31 Dec 2019
S$'000		 %
Change		 31 Dec 2020
S$'000		 31 Dec 2019
S$'000		 %
Change
Non-current assets            
Plant & equipment 7,064 3,290 NM 2,638 1,849 42.7
Investment properties(2) 21,366,075 10,415,843 NM 8,028,300 8,203,845 (2.1)
Subsidiaries(3) - - - 9,410,942 2,130,270 NM
Joint ventures(4) 508,119 840,851 (39.6) 208,875 593,041 (64.8)
Equity instrument at fair value(5) 218,686 214,742 1.8 185,399 214,742 (13.7)
Financial derivatives(6) 31,064 25,001 24.3 - - -
Other non-current asset 1,975 3,343 (40.9) 890 1,927 (53.8)
Deferred tax assets7 10,412 - NM - - -
Total non-current
assets		 22,143,395 11,503,070 92.5 17,837,044 11,145,674 60.0
Current assets
Trade & other
receivables		 83,000 26,391 NM 82,463 32,990 NM
Cash & cash equivalents(8) 183,617 202,198 (9.2) 29,320 156,097 (81.2)
Financial derivatives(6) 6,366 - NM - - -
Total current assets(9) 272,983 228,589 19.4 117,783 189,087 (40.9)
 
Total assets 22,416,378 11,731,659 91.1 17,948,827 11,334,761 58.4
Current liabilities            
Financial derivatives(6) 8,677 2,542 NM - - -
Trade & other payables 293,008 166,857 75.6 134,442 144,712 (7.1)
Current portion of security deposits 90,533 62,532 44.8 41,450 48,140 (13.9)
Short-term borrowings(10) 931,932 259,807 NM 414,492 261,880 58.3
Short-term lease liabilities(11) 2,248 2,865 (21.5) 2,008 2,107 (4.7)
Provision for taxation 7,435 167 NM - - -
Total current liabilities(9) 1333,833 494,770 NM 592,392 456,839 29.7
Non-current liabilities
Financial derivatives(6) 60,285 31,137 93.6 9,980 775 NM
Long-term borrowings(12) 7,794,313 3,301,070 NM 4,766,320 3,278,070 45.4
Long-term lease liabilities(11) 6,442 8,457 (23.8) 6,442 8,217 (21.6)
Non-current portion of security deposits 147,394 128,986 14.3 69,474 105,294 (34.0)
Deferred tax liabilities14 4,706 - NM - - -
Total non-current liabilities 8,014,607 3,469,650 NM 4,852,216 3,392,356 43.0
 
Total liabilities 9,348,440 3,964,420 NM 5,444,608 3,849,195 41.4
 
Net assets 13,067,938 7,767,239 68.2 12,504,219 7,485,566 67.0
Represented by:
Unitholders' funds 13,037,638 7,767,239 67.9 12,504,219 7,485,566 67.0
Non-controlling interests 30,300 - NM - - -
Total equity 13,067,938 7,767,239 68.2 12,504,219 7,485,566 67.0

Notes

  1. The Merger was completed on 21 October 2020. CCT and its subsidiaries’ financials are consolidated into CICT 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.
  2. Investment properties are based on valuations performed by independent professional valuers as at 31 December 2020. 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

    The outbreak of the COVID-19 has impacted market activity in many property sectors. As the impact of COVID19 is fluid and evolving, significant market uncertainty exists. Consequently, the valuations of investment properties are currently subject to material estimation uncertainty. The carrying amounts of the investment properties were current as at 31 December 2020 only. Values may change more rapidly and significantly than during standard market conditions.
  3. This include unitholders’ loans to subsidiaries.
  4. This refers 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, RCST Trust was accounted for as a joint venture of CICT Group.
  5. As at 31 December 2020, this relates to CICT’s 8.9% interest in CRCT at fair value of S$185.4 million and CICT’s 10.9% interest in Sentral Reit at fair value of S$33.3 million.
  6. Financial derivative assets and liabilities relate to fair value of the cross currency, interest rate swaps and forward exchange contracts.
  7. Deferred tax assets relates to the temporary difference arising from the fair value adjustment recognised on the borrowings of CCT Group in relation to the Merger.
  8. The decrease in cash and cash equivalents is mainly due to the decrease in cash flows from operating activities as a result of rental waivers granted by landlord to tenants.
  9. 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.
  10. As of 31 December 2020, these relate to Medium Term Notes (“MTNs”) of S$150.0 million, HKD 585.0 million, JPY6.3 billion and JPY5.0 billion as well as bank borrowings due in FY 2021. It also includes the S$350.0 million 7-year retail bonds issued under the S$2.5 billion retail bond programme by CICT due in 1Q 2021.
  11. 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
  12. As of 31 December 2020, these relate mainly to the fixed and floating rate notes issued by CMT MTN through its US$3.0 billion Euro-Medium Term Note (“EMTN”) Programme and S$7.0 billion Multicurrency Medium Term Note Programme, as well as fixed and floating notes issued by CCT MTN through its S$2.0 billion Medium Term Note Programme and unsecured and secured bank borrowings of the Group.
  13. This relates to payables of Gallileo Co. and MAC Co..
  14. This relates to the temporary differences in respect of the fair value changes of overseas investment properties held by the Group.

    NM – not meaningful
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