CapitaLand Integrated Commercial Trust - Annual Report 2021

Well Spread Retail Lease Expiry Profile The average retail lease has a three-year term. As at 31 December 2021, the retail lease expiry profile remained well spread with 32.0% and 25.0% of the leases by gross rental income due for renewal in 2022 and 2023 respectively. The WALE by gross rental income for the month of December 2021 was 1.9 years. For new leases signed in 2021 for retail properties, including retail components of Integrated Developments (Plaza Singapore, The Atrium@Orchard, Funan and Raffles City Singapore), the WALE was 2.8 years 1 and accounted for 39.4% of the retail portfolio gross rental income for the month of December 2021. RETAIL LEASE EXPIRY PROFILE 1 (As at 31 December 2021) 2022 31.7% 2023 25.0% 2024 27.7% 2025 9.0% 2026 4.9% 2027 and beyond 7.0% 1 Based on date of lease commencement in 2021, the WALE would be 2.6 years and accounted for 32.6% of the retail portfolio gross rental income for the month of December 2021. 1 Based on committed leases in retail properties and retail components in integrated developments. 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 Average Rents vs Outgoing Average Rents (%) 2 Area (sq ft) Percentage of Mall (%) Suburban 3 438 82.6 611,234 27.0 0.2 Downtown 4 296 81.8 437,999 19.6 (7.7) CICT Portfolio 734 82.3 1,049,233 22.3 (3.2) 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. Recovery Signs in Tenants’ Sales While tenants’ sales continued to be impacted by weak consumer sentiment arising from the COVID-19 situation and the new variants, it exhibited signs of recovery as the industry embraced the new norms and gradually reopens. Total tenants’ sales increased 12.2% Y-o-Y in FY 2021. Consumer sentiment improved towards the last quarter of the year boosting tenants’ sales (psf/month) for FY 2021, which recovered to about 99.8% of the level in 2020. Downtown malls witnessed a slightly stronger recovery compared to suburban malls in 2021, as they were on a lower base in 2020. In addition, increased spending across most of the malls was observed. Gross turnover rent, which was pegged to tenants’ sales and formed part of the rent structure for retail leases, accounted for a small percentage of the retail gross revenue. It ranged between 4% and 10% of the respective malls’ retail gross rental income (excluding Clarke Quay 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). CapitaLand Integrated Commercial Trust 62 Operations Review