Office: Healthy Demand for Space The office occupancy was boosted by strong demand from the return of the office community, flight to quality and expansion by some sectors. Approximately 1.0 million sq ft of new and renewed office leases were signed in FY 2023. Within the Singapore office portfolio, the FY 2023 tenant retention rate was 86.5%, largely due to the renewals of large anchor tenants. CICT continued to attract new tenants from diverse trade sectors. The three largest sectors of demand were 1) Real Estate and Property Services, 2) Financial Services and 3) IT, Media and Telecommunications trade categories. The WALE of office leases signed and commenced in 2023, including office components of Integrated Development, was 3.8 years. The proportion of revenue attributed to these leases was approximately 9.8% of the office portfolio's committed GRI for December 2023. This includes the proportionate interests in CapitaSpring, CapitaSky, 101 - 103 Miller Street and Greenwood Plaza, as well as Main Airport Center. Office: Positive Rent Reversions Singapore office portfolio achieved a positive rent reversion of 9.0% for FY 2023. The average monthly rent for the Singapore office properties, including Funan and The Atrium@Orchard, registered an uptick at S$10.49 per sq ft versus S$10.24 per sq ft a year ago. The rise was due to the higher signing rents achieved in FY 2023, surpassing market rent growth. BUSINESS SECTORS OF NEW LEASES SIGNED IN 2023 New Lease Trade Categories NLA (sq ft) % of Total New Leases Singapore Germany Australia Real Estate and Property Services 62,741 - 29,526 21.2% Financial Services 84,771 - - 19.5% IT, Media and Telecommunications 66,305 - - 15.3% Insurance 9,871 - 29,568 9.1% Services 10,831 - 21,984 7.6% Business Consultancy 31,658 - - 7.3% Manufacturing and Distribution 22,384 5,599 - 6.4% Food and Beverage 23,603 - - 5.4% Maritime and Logistics 3,606 - 10,506 3.2% Legal 11,227 - - 2.6% Energy and Commodities 8,700 - - 2.0% Travel and Hospitality - 1,910 - 0.4% 335,697 7,509 91,584 100% Overview Leadership Performance Framework Other Information ANNUAL REPORT 2023 63
RkJQdWJsaXNoZXIy NTkwNzg=