CapitaLand Integrated Commercial Trust - Annual Report 2021

Balancing Occupancy and Rental Reversion For FY 2021, CICT’s retail portfolio achieved a healthy tenant retention rate of 82.3%. Incoming first year rents for new and renewed leases registered an average decline of 7.3% against outgoing final year rents in FY 2021. Incoming average rents registered a decline of 3.2% against outgoing average rents as leases were signed with higher step ups during the lease term. Our ongoing priority is to balance occupancy and rental rates in each property while continuing to rejuvenate and adjust tenant mix in the malls to remain relevant with the evolving retail landscape. RETAIL OPERATIONS REVIEW Healthy Retail Occupancy Maintained Due to our active asset management and proactive leasing strategy, we maintained a healthy occupancy rate of 96.8% for CICT’s retail portfolio as at 31 December 2021. This was above Singapore’s retail market occupancy rate of 91.9% for 4Q 2021 based on URA’s islandwide retail space occupancy rate. COMMITTED OCCUPANCY RATE (%) 1 As at 31 December 2020 As at 31 December 2021 1 Retail occupancy includes retail only properties and the retail components within integrated developments. 2 Clarke Quay’s occupancy was affected by government-stipulated restrictions on trading hours and sales of alcohol at nightlife venues like clubs, karaoke joints and bars without food licenses. 3 Comprises JCube and Bukit Panjang Plaza. SUMMARY OF RENEWALS / NEW LEASES From 1 January to 31 December 2021 (Excluding Newly Created and Reconfigured Units) 1 Properties No. of Renewals / New Leases Retention Rate (%) Net Lettable Area Change in Incoming Year 1 Rents vs Outgoing Final Rents (typically includes annual step-ups) (%) 2 Area (sq ft) Percentage of Mall (%) Suburban 3 438 82.6 611,234 27.0 (2.4) Downtown 4 296 81.8 437,999 19.6 (13.8) CICT Portfolio 734 82.3 1,049,233 22.3 (7.3) 1 Based on retail leases only. 2 Excludes gross turnover rent, which is between 4% and 10% of respective mall’s retail gross rental income. Clarke Quay is excluded from the range as it has been affected by government-stipulated restrictions on trading hours and sales of alcohol at nightlife venues like clubs, karaoke joints and bars without food licenses. 3 Suburban malls comprise Tampines Mall, Bedok Mall, Junction 8, Lot One Shoppers’ Mall, Bukit Panjang Plaza, IMM Building, Westgate and JCube. 4 Downtown malls comprise Plaza Singapura, The Atrium@Orchard, Bugis Junction, Bugis+, Clarke Quay, Raffles City Singapore and Funan. Tampines Mall Junction 8 Funan IMM Building Plaza Singapura Bugis Junction Raffles City Singapore Lot One Shoppers' Mall The Atrium@ Orchard Clarke Quay 2 Bugis+ Westgate Bedok Mall Other Assets 3 99.9 100 99.7 99.5 98.7 98.7 96.5 98.9 94.2 90.1 99.5 98.3 99.1 96.5 100 100 98.5 100 97.3 99.1 95.4 99.9 92.2 73.5 95.5 99.2 99.2 97.5 Annual Report 2021 61 Operations Review