Proforma impact assuming +1.0% p.a. increase in interest rate Estimated additional annual Interest expensei +S$21.51 million Estimated DPUii -0.32 cents i Computed on full year basis on floating rate borrowings of CICT Group (excluding proportionate share of joint ventures' borrowings) as at 31 December 2023. ii Based on the number of units in issue as at 31 December 2023. DEBT MATURITY PROFILE AS AT 31 DECEMBER 2023 i Refers to the proportionate share of borrowings (on look through basis) based on CICT Group's 45.0% interest in Glory Office Trust and Glory SR Trust. In summary, as at 31 December 2023, CICT Group's aggregate leverage was 39.9%. Average cost of debt was at 3.4% as at 31 December 2023 compared to 2.7% as at 31 December 2022 mainly due to higher benchmark CICT'S INTEREST IN JOINT VENTURES CICT Group has a 45.0% interest in CapitaSpring held through Glory Office Trust and Glory SR Trust. As at 31 December 2023, the bank borrowings amounted to S$1,203.0 million. CICT Group's 45.0% share thereof was S$541.4 million. CASHFLOWS AND LIQUIDITY CICT Group takes a proactive role in monitoring its cash flow position and requirements to ensure sufficient liquidity and adequate funding is available for distribution to the Unitholders as well as to meet any short-term obligations. As at 31 December 2023, the value of cash and cash equivalents of CICT Group stood at S$140.7 million, a decrease of S$107.7 million compared with S$248.4 million as at 31 December 2022 mainly due to paring down of debts. Medium Term Notes Secured Bank Loans Unsecured Bank Loans 2024 2027 2031 2025 2028 2032 2026 2030 2029 2033 FOREIGN EXCHANGE RISK MANAGEMENT CICT Group manages foreign exchange risks through natural and forward hedges. For CICT Group’s Germany and Australia properties, Euro and Australian dollar denominated borrowings were obtained as a hedge for CICT’s net investment value. In addition, any anticipated net dividends fromthe overseas properties were hedged with forward foreign exchange contracts. ACCOUNTING POLICIES The financial statements have been prepared in accordance with the Statement of Recommended Accounting Practice 7 Reporting Framework for Investment Funds (RAP 7) issued by the Institute of Singapore Chartered Accountants, the applicable requirements of the Code on Collective Investment Schemes issued by theMonetary Authority of Singapore and the provisions of the Trust Deed. RAP 7 requires that the accounting policies adopted generally comply with the principles relating to recognition and measurement of the Singapore Financial Reporting Standards. 16% 13% 13% 14% 11% 15% 9% 3% 3% 3% 1,541 1,308 1,328 1,427 1,076 1,524 915 305 250 258 541I 195 169 347 1,009 616 440 475 100 281 860 770 900 832 299 407 418 460 interest rates. 78% of CICT Group’s borrowings have been hedged in fixed rates to mitigate the exposure to interest rate movements. As at 31 December 2023, about 10.6%or S$999.6million of CICT Group's borrowings (excluding interest in joint ventures) will mature in 2024. CICT has sufficient bank facilities and internal resources to repay the borrowings due in 2024. The Manager will continue to adopt a rigorous and focused approach to capital management. The Manager is also committed to diversifying funding sources and will continue to review its debt profile to reduce refinancing risk. Overview Leadership Performance Framework Other Information ANNUAL REPORT 2023 51
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