our retail portfolio, fuelling the rise in shopping and entertainment at downtownmalls and also contributed to the resilient performance at our suburban malls. Overall, shopper traffic climbed 8.6% YoY. Demonstrating our deep understanding of the retail landscape, we carefully selected and tailored our offerings to uniquely position each mall, catering to the preferences of discerning shoppers. New retail offerings that opened in FY 2023 included new-tomarket and new-to-portfolio retailers, providing a refreshing wide range of food & beverage, fashion, beauty and lifestyle options to consumers. Tenant sales per sq ft per month climbed 1.8% fromFY 2022, surpassing pre-COVID levels. Meanwhile, gross turnover rent was 7.2% of retail portfolio’s FY 2023 GRI. On the back of the strong performance of our retail segment, we signed 0.8 million sq ft of new leases and renewals in the retail space in FY 2023, recording a strong tenant retention rate of 82.8%. We saw a positive momentum for retail rent reversion in FY 2023, recording 8.5% for the year based on the average rent of new leases compared to the average rent of expiring leases. CICT's Singapore retail portfolio occupancy of 98.5% remained above Urban Redevelopment Authority's retail market occupancy of 93.5% for 4Q 2023. SUSTAINING GROWTH MOMENTUM IN OFFICE SEGMENT Despite the macroeconomic uncertainties and a shift towards hybrid working arrangements, CICT’s office portfolio observed healthy leasing activity with an overall net expansion of space requirements across our portfolio. In FY 2023, we signed approximately 1.0 million sq ft of office space for new leases and renewals. CICT's Singapore office portfolio achieved a positive rent reversion of 9.0% and also reported a strong tenant retention rate of 86.5%. The Singapore office portfolio occupancy of 98.5%was above CBRE's CBD Core office market occupancy of 94.8% for 4Q 2023. The Singapore office market rent continued to increase throughout 2023, reaching S$11.90 per sq ft per month in 4Q 2023. Office market rent is expected to be supported by tight supply as shadow space tapers and a limited annual new office supply averaging 0.8 million sq ft from 2024 to 2026 enters the market. Outside of Singapore, we are actively ramping up occupancies and remain focused on tenant retention amidst the challenging environment. Tony Tan, CEO (second from right), receiving the Investors' Choice Outstanding CEO Award at the SIAS Investors' Choice Awards 2023. Signed ~1.7 million sq ft New leases and renewals for retail & office portfolios in FY 2023 ANNUAL REPORT 2023 29 Overview Leadership Performance Framework Other Information
RkJQdWJsaXNoZXIy NTkwNzg=