CapitaLand Integrated Commercial Trust - Annual Report 2021

online sales accounting for 24.5% of total retail sales in 2021 6 , increasing by 14.1% y-o-y. With increased participation of foreign and private players in the online retail scene in India, total online sales are projected to grow by 44.7% by end of 2021. Japan’s e-commerce market, which comprised an online retail sales proportion of 8.1% and 33.5% 7 from business-to-consumer and business-to-business markets in 2020, is also projected to grow by 10.5% in 2021 8 . Singapore’s overall online sales proportion was 14.6% in December 2021, an increment of 3.5 percentage points y-o-y from the same period last year. The COVID-19 pandemic has turbocharged the e-commerce trend, as measures on mobility compelled people to adopt online retailing for uninterrupted access to goods and services. While online shopping remains as a disruptive contender, with carefully curated promotions and retail experiences, there are opportunities for brick-and- mortar stores to pick up as restrictions ease. Existing Supply As at 4Q 2021, total islandwide retail stock increased by 1.0% y-o-y to 66.7 million sq ft. In all, 74.4% (49.7 million sq ft) of total retail stock is private retail stock. Tightened borders and supply chain disruptions have caused construction schedules for majority of the new projects to be delayed. Completion of Grantral Mall and Shaw Plaza Balestier, initially scheduled to TOP in 2021, were delayed to 2022. The only major completion in 2021 was the renovation works at I12 Katong (211,500 sq ft). As at 4Q 2021, private retail stock in Orchard Road remained stable y-o-y at 7.3 million sq ft and accounted for 10.9% of total islandwide stock. The Downtown Core region, comprising of Bugis, City Hall, Marina Centre, Raffles Place and Shenton Way, saw an increase in private retail stock by 0.3% y-o-y to 7.5 million sq ft in 4Q 2021, and accounted for 11.3% of the islandwide stock. Private Retail Floor Space per Capita The provision of private retail floor space per capita in Singapore is estimated to be approximately 9.1 sq ft 6 Source: National Bureau of Statistics of China. 7 Source: Ministry of Economy, Trade and Industry, Japan. 8 Source: GlobalData. 9 Includes retail premises and other premises designed or adapted for commercial use. 10 Based on URA’s total private stock. net lettable area (NLA) per capita, an increment from the preceding year due to population contraction. In comparison to other countries, Singapore’s private retail floor space per capita provision is similar to that of Australia but significantly lower than those of cities such as London, Hong Kong 9 and Bangkok. PRIVATE RETAIL FLOOR SPACE PER CAPITA (sq ft per capita) 15.0 5.0 20.0 10.0 0.0 London Hong Kong Bangkok Singapore Australia 17.4 16.9 15.2 9.1 9.0 Source: CBRE, PCA, Australia Bureau of Statistics, Rating and Valuation Department Hong Kong, Census and Statistics Department Hong Kong, Gov.UK, URA, Singapore Department of Statistics, 4Q 2021 Private Retail Stock Ownership Corporations and developers such as CapitaLand, Far East Organization and Frasers Property Group, continued to be the largest owners of private retail stock in Singapore. They represent approximately 43.8% of the private retail stock NLA 10 . Real Estate Investment Trusts (REITs) followed to be the second- largest owners, including CapitaLand Integrated Commercial Trust (CICT), Mapletree Commercial Trust and SPH REIT, comprising an estimated 21.0%of private retail stock. The remaining 35.2% of private retail stock is owned by funds and insurance houses, strata-titled owners, others and public. CICT, which owns approximately 9.1% of the total private retail stock, continues to be the largest owner of private retail stock in Singapore. Annual Report 2021 101 Independent Market Review