Step-up Rent: The rental increments built into step-up leases typically provide an organic growth of 2-3 percent annually. As at 31 December 2004, a total of 711 tenants or 73.8 percent of the total number of tenants (excluding office and warehouse) are on the step-up rental structure, an increase of 274 tenants or 62.7 percent over 2003.

Gross Turnover (GTO) Rent: GTO rent, which is usually tied to no more than 1 percent of our tenants’ sales, serves as a management tool which helps us understand the sales of our tenants. Besides providing us with key information to develop customised marketing and promotions at the malls, this rental structure also aligns our interests with those of our tenants. As at 31 December 2004, 71.5 percent of the total number of tenants (excluding office and warehouse) are on this rental structure, accounting for about 2.2 percent of the revenue for 2004.

Improved Rental Rates: With the improved rental rates and step-up rent providing intrinsic growth, CMT has established a stable growth platform for future years. Rental rates for renewed and new leases concluded in 2004 reflected an increase of 4.0 percent from forecast rents for 2004 and 7.3 percent over preceding rents.

Non-rental Income: This includes income from car parks, vending machines, casual leasing, services provided at customer service counters and advertisement panel spaces. In 2004, further improvement in this form of revenue was achieved through advertising on escalators, link bridges, in lifts and other areas. Non-rental income contributed 8.1 percent of revenue for 2004.