CapitaLand Integrated Commercial Trust - Annual Report 2021

Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2021 These notes form an integral part of the financial statements. The financial statements were authorised for issue by the Manager and the Trustee on 24 February 2022. 1 GENERAL CapitaLand Integrated Commercial Trust (the “Trust”), formerly known as CapitaLand Mall Trust (“CMT”) is a Singapore-domiciled unit trust constituted pursuant to the trust deed dated 29 October 2001 (as amended) (the “Trust Deed”) between CapitaLand Integrated Commercial Trust Management Limited (the “Manager”), and HSBC Institutional Trust Services (Singapore) Limited (the “Trustee”). The Trust Deed is governed by the laws of the Republic of Singapore. The Trustee is under a duty to take into custody and hold the assets of the Trust and its subsidiaries (the “Group”) in trust for the holders (“Unitholders”) of units in the Trust (the “Units”). The Trust was formally admitted to the Official List of the Singapore Exchange Securities Trading Limited (“SGX-ST”) on 17 July 2002 (“Listing Date”) and was included under the Central Provident Fund (“CPF”) Investment Scheme on 13 September 2002. On 22 January 2020, the Manager and the manager of CapitaLand Commercial Trust (“CCT”) jointly announced the proposed merger of CMT and CCT (the “Merger”) through the acquisition by CMT of all the issued and paid-up units of CCT by way of a trust scheme of arrangement (“Trust Scheme”), to be effected in accordance with the Singapore Code on Take-overs and Mergers. On 29 September 2020, unitholders of both CMT and CCT voted in favour of the Merger and the Trust Scheme (as the case may be) at their respective unitholders meetings. The Trust Scheme was sanctioned by the High Court on 12 October 2020 and became effective and binding in accordance with its terms on 21 October 2020. Following the completion of the Merger, CCT was delisted from SGX-ST and the merged entity renamed “CapitaLand Integrated Commercial Trust” (“CICT”) on 3 November 2020. The principal activity of CICT is to invest, directly or indirectly, in real estate which is income producing and is used or primarily used for commercial purposes (including retail and/or office purposes), located predominantly in Singapore. The principal activities of the subsidiaries and joint ventures are set out in Notes 6 and 7. The consolidated financial statements relate to the Trust and its subsidiaries (the “Group”) and the Group’s interests in its joint ventures. For financial reporting purposes, the intermediate and ultimate holding companies of the Group are CapitaLand Limited (“CL”) and Temasek Holdings (Private) Limited respectively for FY 2020. With effect from September 2021, following internal restructuring of CL, CL ceased to be the intermediate company of the Group and CapitaLand Investment Limited became the intermediate holding company. Temasek Holdings (Private) Limited remains as the ultimate holding company of the Group. The Trust has entered into several service agreements in relation to management of the Trust and its property operations. The fee structures of these services are as follows: 1.1 Property management fees Under the property management agreement with CapitaLand Retail Management Pte Ltd, property management fees are charged as follows: (a) 2.00% per annum of the gross revenue of the properties; (b) 2.00% per annum of the net property income of the properties; and (c) 0.50% per annum of the net property income of the properties, in lieu of leasing commissions. The property management fees are payable monthly in arrears. Annual Report 2021 227