2022 2023 SINGAPORE RETAIL PORTFOLIO OCCUPANCY COST (%) FY 2023 TENANT SALESi YOY PERFORMANCE BY TRADE CATEGORIES (%) Top five trade categories contributed > 69% of total retail GRIiii: 1.7% YoY Suburban Mall 7.8% Downtown Mall 9.5% Retail: Resilient Shopper Traffic Overall Singapore portfolio shopper traffic registered an increase of 8.6% YoY on the back of increased tourist arrivals in Singapore, a refreshed and stronger trade mix in the portfolio, and newmarketing initiatives. However, shopper traffic was still below 2019 levels as travel activity gradually recovered in the year. Both suburban and downtown malls registered an upward trend as compared to the previous year, where downtown malls saw a 9.5% increase and suburban malls, a 7.8% increase. Retail: Healthy Occupancy Cost Occupancy cost is defined as a ratio of gross rental income (inclusive of service charge, advertising & promotional charge and gross turnover rent) to tenant sales. CICT's occupancy cost for the Singapore retail properties was 16.3% in FY 2023, a decrease from the occupancy cost of 16.6% for FY 2022. The lower occupancy cost is attributed to a rebalancing of some trade categories in the portfolio and improved tenant sales. CICT is actively monitoring and balancing the occupancy cost ratio, given that retailers are operating in a heightened cost environment with inflationary pressures from high manpower and utility costs. Occupancy cost is also dependent on various factors including trade mix, type of tenants in the portfolio and mall positioning. 16.6 16.3 FY 2023 SHOPPER TRAFFIC (YOY PERFORMANCE) Portfolio Average 8.6% i Singapore tenant sales are based on S$ per sq ft per month. ii Comprises convenience stores, bridal shops, optical shops, film processing shops, florists, magazine stores, pet shops, travel agencies, cobblers/locksmiths, laundromats and clinics. iii Includes gross turnover rent. Leisure& Entertainment 3.3 Shoes &Bags 6.4 Department Store 0.6 Fashion 0.5 Food&Beverage 4.1 Jewellery &Watches -7.1 Beauty &Health 2.5 IT&Telecommunications 3.8 Services ii 5.7 Education 3.3 Electrical & Electronics -0.2 HomeFurnishing -8.6 Books &Stationery 0.4 Supermarket -1.0 SportingGoods -1.4 Overview Leadership Performance Framework Other Information ANNUAL REPORT 2023 61
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