CapitaLand Integrated Commercial Trust - Annual Report 2021

PORTFOLIO VALUATION INCREASED MAINLY DUE TO IMPROVING MARKET CONDITIONS AND CAPITASPRING BEING VALUED AS AN OPERATING ASSET ON COMPLETED BASIS CICT conducted independent valuation of its portfolio in December 2021 and the methodologies applied included the discounted cashflow method and/or the income capitalisation approach. Independent valuations for Retail and Integrated Development properties (excluding CapitaSpring) as at 31 December 2021 were largely unchanged as capitalisation rates held steady compared to a year ago. However, Raffles City Singapore registered a decline in valuation due to the commencement of AEI and reconfiguration work in the retail component which started in January 2022, capital expenditure (capex), downtime and the impact on rental revenue. Clarke Quay similarly reported a lower valuation due to capex provisions and the expected impact on rental revenue with downtime during an upgrading period commencing in 2022. CapitaSpring reported a rise in value as it was appraised as an operating asset on completed basis as at 31 December 2021 after it obtained Temporary Occupation Permit in November 2021. Independent valuations as at 31 December 2021 for most Office properties except for Gallileo, improved compared to a year ago. The increase was largely due to improving market conditions, including lower capitalisation rates assumed by the appraisers.Gallileo’s valuation was lower compared to a year ago, due to the impending departure of Commerzbank in January 2024 and provision of capex and downtime for upgrading works. RETAIL PORTFOLIO VALUATIONS Valuation as at 31 Dec 21 Valuation as at 31 Dec 20 Variance Valuation as at 31 Dec 21 S$ million S$ million S$ million % S$ per sq ft NLA Westgate 1,091.0 1,087.0 4.0 0.4 2,667 Bugis Junction 1,088.0 1,087.0 1.0 0.1 2,769 Tampines Mall 1,078.0 1,074.0 4.0 0.4 3,026 Junction 8 796.0 794.0 2.0 0.3 3,133 Bedok Mall 783.0 779.0 4.0 0.5 3,520 IMM Building 709.0 1 670.0 39.0 5.8 736 Lot One Shoppers’ Mall 543.5 531.0 12.5 2.4 2,397 Bugis+ 354.0 353.0 1.0 0.3 1,651 Clarke Quay 342.0 2 394.0 (52.0) (13.2) 1,166 Bukit Panjang Plaza 338.6 334.5 4.1 1.2 2,066 JCube 278.0 276.0 2.0 0.7 1,324 Total 7,401.1 7,379.5 21.6 0.3 1 Valuation as at 31 December 2021 for IMM Building was uplifted mainly due to higher rents and improved occupancy achieved in the warehouse component. 2 Valuation as at 31 December 2021 took into account the estimated costs to be incurred for upgrading works at Clarke Quay as well as the downtime and impact on rental revenue during this period. Figures may not add up due to rounding. CapitaLand Integrated Commercial Trust 56 Operations Review