KEY FINANCIAL INDICATORS As at 31 December 2022 As at 31 December 2023 % of Total Assets that are Unencumbered (%) 93.5 93.7 Aggregate Leveragei (%) 40.4 39.9 Interest Coverage Ratio (ICR)ii (times) 3.7 3.1 Average Term to Maturity (years) 3.9 3.9 Average Cost of Debtiii (%) 2.7 3.4 CICT's Issuer Ratingiv ‘A3’ by Moody’s ‘A-‘ by S&P ‘A3’ by Moody’s ‘A-‘ by S&P i In accordance with Property Funds Appendix of the Code on Collective Investment Schemes (CIS code), the computation of aggregate leverage ratio includes CICT's proportionate share of borrowings and deposited property values in joint ventures. As at 31 December 2023 and 31 December 2022, the total borrowings of CICT Group including its proportionate share of joint ventures' borrowings is S$9.9 billion and S$10.0 billion respectively. The ratio of total gross borrowings to total net assets is 69.1% and 70.1% as at 31 December 2023 and 31 December 2022 respectively. ii ICR is defined as the ratio of earnings of CICT Group, before interest, tax, depreciation and amortisation (excluding effects of any fair value changes of derivatives and investment properties, foreign exchange translation, non-operational gain/loss as well as share of results of joint ventures) and distribution income from joint ventures, over interest expense and borrowing-related costs, on a trailing 12-month basis. As CICT Group did not issue any hybrid securities, the adjusted ICR is the same as ICR. iii Ratio of interest expense over weighted average borrowings. iv Moody’s Investors Service has affirmed the “A3” issuer rating with a stable outlook on 26 June 2023. CAPITAL MANAGEMENT CICT adopts a prudent capital management strategy, with a focus on diversifying its funding sources, including sustainable financing and extending its debt maturity profile. During FY 2023, CICT secured S$2.2 billion in sustainability-linked and green loan facilities as well as green bond issuances. CICT through CMT MTN Pte. Ltd. issued a total of S$532.7 million of green bonds in 2023. On 15 March 2023, HK$755.0 million 4.85% 10-year fixed rate bonds due 15 March 2033 was issued. The proceeds were swapped into Singapore dollars equivalent of S$132.7 million at a Singapore dollar fixed interest rate of 4.026% per annum. Another S$400.0 million 3.938% 7-year fixed rate bonds due 19 June 2030 was issued on 19 June 2023. Both bonds are unsecured. TOTAL BORROWINGS OF CICT GROUPi SS$ million % Medium term notesii 4,603.8 49.0 Bank loansiii 4,075.4 43.4 Total unsecured borrowings at CICT Group 8,679.2 92.4 Secured bank loansiii 711.3 7.6 Total borrowings at CICT Group 9,390.5 100.0 i Excludes CICT Group’s 45.0% interest in Glory Office Trust and Glory SR Trust. ii In respect of the foreign currency denominated notes which have been swapped into Singapore dollars, the outstanding amounts reflect the nominal amounts of the swapped contracts based on their respective swap rates. iii Includes fixed rate foreign currency bank loans. The proceeds from the two green bonds have been fully utilised to refinance eligible Green Buildings under CICT Green Finance Framework. More information can be found onhttps://www.cict.com.sg/green-finance.html. The total outstanding sustainability-linked/green loan facilities and green bonds was S$4.2 billion as of 31 December 2023, accounting for 41.8% of its total borrowings, including joint ventures' borrowings. CICT Group holds derivative financial instruments to hedge its currency and interest rate risk exposures. The fair value derivative for FY 2023, which was included in the financial statements as financial derivative assets and financial derivative liabilities were S$16.0 million and S$137.1 million respectively. These net financial derivative liabilities of S$121.1 million represented 0.8% of the net assets of CICT Group as at 31 December 2023. The total borrowings of CICT Groupi as at 31 December 2023 are as follows: FUNDING SOURCESi (as at 31 December 2023) Medium Term Notes Unsecured Bank Loans Secured Bank Loans i Excludes share of joint ventures’ borrowings. 43.4% 7.6% 49.0% 50 CAPITALAND INTEGRATED COMMERCIAL TRUST CAPITAL MANAGEMENT
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