CapitaLand Integrated Commercial Trust - Annual Report 2021

Goulburn Street, 100 Arthur Street and a 50.0% interest in 101 – 103 Miller Street and Greenwood Plaza positions CICT for future growth opportunities, alongside improving fundamentals in Sydney and North Sydney Central Business Districts (CBDs). Hot on the wheels of these acquisitions, we announced our divestment of JCube for S$340.0 million at an NPI yield of less than 4% on 24 January 2022. This is in line with our portfolio reconstitution strategy of divesting non-core assets, while we maintain a strong foothold in Jurong Gateway with our two other malls Westgate and IMM Building. CICT’s portfolio property value increased by 3.5% to S$22.5 billion based on independent appraisals as at 31 December 2021. The adjusted net asset value per unit rose 3.0% year-on-year to $2.06. GROWING PHYGITAL ENGAGEMENTS THROUGH CAPITASTAR With a focus on omnichannel retail strategy to blend physical and online sales channels, we are always on the lookout for new ways to support our retailers and engage shoppers. Since June 2020, CICT’s malls relied on the online platforms rolled out via CapitaLand’s CapitaStar eco-system to support retailers amidst restrictive social distancing measures. By the end of 2021, the online platforms supported over 600 brands. Leveraging CapitaStar’s 1.2 million members, the platforms have grown Gross Merchandise Value (GMV) by 178% year-on-year. Contributing positively towards sales on the online platforms was the usage of eCapitaVoucher, which grew by 163% year-on- year. This was partially driven by CapitaLand’s continuous efforts to expand strategic partnerships with DBS Bank, KrisFlyer, SP Group, PAssion and American Express. As we move towards an endemic Singapore with a higher vaccination rate, CapitaLand will evaluate its omnichannel retail strategy to stay relevant and competitive via CapitaStar eco- system. More delightful shopping experiences will be offered and help drive offline shopper traffic to boost retail consumption, which will also benefit CICT. On the office front, leveraging CapitaLand’s CapitaStar@Work platform, we continued to build enriching experiences that integrate play and work. The community enjoyed greater options for products and services on the mobile app and online platform, as well as seamless convenience at CICT’s seven workspace properties, including our latest addition, CapitaSpring. Following the successful integration of tenants from Capital Tower and CapitaSpring, we welcomed over 7,000 new users to the platform during the year. CHAMPIONING SUSTAINABILITY As a responsible company, we reach beyond the bottom line to embrace people and the planet and achieve long-term sustainability for all. On 25 October 2021, we established the Nominating and Remuneration Committee. Aimed at securing organisational stability and leadership, it will support the Board in succession planning and performance reviews. CICT’s environmental commitments are aligned with CapitaLand’s 2030 Sustainability Master Plan. This outlines the targets and pathways that guide our transition to a low-carbon business. Based on a well-below 2°C scenario, the science-based carbon emission intensity reduction targets enable us to better track improvements in the efficiency of our day-to- day operations. In line with this plan, we are exploring more renewable energy options, such as installing more solar panels at our properties. Our sustainability efforts have earned us a GRESB 5-star rating and an ‘A’ for Public Disclosure in 2021. At the same time, majority of our Singapore portfolio’s leases contain green clauses and green fit-out guides are given to all our tenants for their reference when fitting out their spaces. Following our increased focus on climate-change risks and management measures, we have an interim update on the Task Force on Climate-related Financial Disclosures (TFCD) framework. We are currently working on providing more disclosures. Amidst COVID-19, the health and wellness of our stakeholders remains a key priority. We implemented several measures at our properties to ensure their safety, on top of temperature screening and safe distancing measures required by the authorities. These include applying anti-microbial coating technology on all high-touch surfaces at our malls and offices, deploying autonomous UV disinfection robots at TampinesMall and Funan, and installing protective acrylic screens, disinfection floor mats and PhotoPlasma air disinfection systems where needed. Not forgetting the less fortunate among us, we joined CHF, CapitaLand Integrated Commercial Trust 16 Message to Unitholders