Retail: Lease Expiry Profile As at 31 December 2023, the retail lease expiry profile remained well spread with 23.7% and 28.2% of the leases by committed GRI due for renewal in 2024 and 2025 respectively. Typical retail lease has a three-year duration. For new retail leases signed and commenced in 2023, including retail components of Integrated Development (Funan, Plaza Singapura, The Atrium@ Orchard and Raffles City Singapore), the WALE was 2.7 years and accounted for 25.3% of the retail portfolio GRI for December 2023. Retail: Tenant Sales Tenant sales remained resilient as it continued to surpass 2019 levels. On a per sq ft basis, total tenant sales increased 1.8% YoY in FY 2023, driven by a surge in Singapore tourists arrivals and heightened local consumption. The increase in tenant sales moderated in FY 2023 as a result of the high base in 2022, owing to the easing of safe management measures in late April 2022. Notably, Singapore tourism activity showed steady recovery in 2023, recording a total of 13.6 million international arrivals. However, the resumption of travel also resulted in more outbound travel by Singaporeans, which has impacted consumer spending in our malls. Nonetheless, CICT registered growth in tenant sales in our retail properties. i Based on GRI of committed leases excluding gross turnover rent as at 31 December 2023. Retail: Positive Rent Reversions On an average rent basis, incoming rents registered an increase of 8.5% against average outgoing rents as leases were signed with step-ups during the lease term in FY 2023. Average rents for suburban and downtown malls have recovered with a positive rent reversion of 8.3% and 8.8% respectively for FY 2023. Suburban malls remained resilient, supported by hybrid work arrangements adopted by most companies, while downtown malls benefited from the pandemic recovery, with travel resuming and people returning to office. The overall average retail portfolio gross turnover rent was 7.2% for FY 2023, and within the range of 5% and 14% of the respective mall's retail GRI. CICT’s retail portfolio achieved a healthy tenant retention rate of 82.8% in FY 2023. RENEWED AND NEW RETAIL LEASES FOR FY 2023 Singapore Properties NLA Rent Reversion for FY 2023 No. of Renewals / New Leases Retention Rate (%) Area (sq ft) Percentage of Retail Portfolio (%) Average Incoming Rents vs Average Outgoing Rents Suburban Malls 357 86.6 469,540 10.9 8.3 Downtown Malls 256 76.8 301,950 7.0 8.8 CICT Retail Portfolio 613 82.8 771,490 17.9 8.5 SINGAPORE RETAIL LEASE EXPIRY PROFILEi (%) WALE: 2.0 YEARS 2024 23.7 2025 28.2 2026 28.4 2027 13.3 1.9 2029 and beyond 2028 4.5 Overview Leadership Performance Framework Other Information ANNUAL REPORT 2023 59
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