Notes to the Financial Statements Year ended 31 December 2024 117 Annual Report 2024 These notes form an integral part of the financial statements. The financial statements were authorised for issue by the Manager and the Trustee on 6 March 2025. 1 GENERAL CapitaLand Integrated Commercial Trust (the “Trust”) is a Singapore-domiciled unit trust constituted pursuant to the trust deed dated 29 October 2001 (as amended) (the “Trust Deed”) between CapitaLand Integrated Commercial Trust Management Limited (the “Manager”), and HSBC Institutional Trust Services (Singapore) Limited (the “Trustee”). The Trust Deed is governed by the laws of the Republic of Singapore. The Trustee is under a duty to take into custody and hold the assets of the Trust and its subsidiaries (the “Group”) in trust for the holders (“Unitholders”) of units in the Trust (the “Units”). The Trust was formally admitted to the Official List of the Singapore Exchange Securities Trading Limited (“SGXST”) on 17 July 2002 (“Listing Date”) and was included under the Central Provident Fund (“CPF”) Investment Scheme on 13 September 2002. The principal activity of the Trust is to invest, directly or indirectly, in real estate which is income producing and is used or primarily used for commercial purposes (including retail and/or office purposes), located predominantly in Singapore. The principal activities of the material subsidiaries and joint ventures are to invest in income producing real estate and real estate related assets, which are used or substantially used for commercial purposes, with the primary objective of achieving an attractive level of return from rental income and for long-term capital growth. The consolidated financial statements relate to the Trust and its subsidiaries (the “Group”) and the Group’s interests in its equity-accounted investees. The Group has entered into several service agreements in relation to management of the Group and its property operations. The fee structures of these services are as follows: On 31 May 2023, the Trustee in its capacity as trustee of the Trust entered into a new master property management agreement (the “New PMA”), to appoint CapitaLand Retail Management Pte Ltd (“Retail Property Manager”) and CapitaLand Commercial Management Pte. Ltd. (“Office Property Manager”) to provide property management and marketing services to the Trust and its wholly-owned subsidiaries, for the period of 10 years commencing 1 June 2023 in respect of the properties located in Singapore. The New PMA was approved by the Unitholders during the Extraordinary General Meeting on 19 April 2023. The previous property management agreements between the Trustee with the Retail Property Manager, the Office Property Manager and CapitaLand (RCS) Property Management Pte. Ltd. (collectively, the “Old PMA”) were in turn terminated, as these agreements were superseded by the New PMA. 1.1 Property management fees (i) Pursuant to the New PMA, property management fees to the Retail Property Manager are charged as follows: (a) 2.00% per annum of property income; and (b) 2.00% per annum of the net property income. The property management fees are payable monthly in arrears. (ii) Pursuant to the Old PMA, property management fees to the Retail Property Manager are charged as follows: (a) 2.00% per annum of the gross revenue of the properties; (b) 2.00% per annum of the net property income of the properties; and (c) 0.50% per annum of the net property income of the properties, in lieu of leasing commissions. The property management fees are payable monthly in arrears.
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