14 CapitaLand Integrated Commercial Trust At Raffles City Singapore, upgrading works began in November 2025 to uplift office user experience. This includes refurbishing the Level 1 office lobby, creating end-of-trip facilities with dedicated bicycle parking and amenities, and installing wayfinding on all office floors. The upgrade is on track for completion by 4Q 2026. Overall, total property value grew 5.2% YoY to S$27.4 billion as at 31 December 2025. CICT’s portfolio remains Singapore-centric at 94%, with 3% each in Australia and Germany. Net asset value per Unit increased 0.9% to S$2.14, in line with a year ago. From an income perspective, CICT’s FY 2025 NPI yield was 4.6%. Continued momentum into 2026 Continuing the active portfolio reconstitution, CICT started 2026 with a series of value creation initiatives. In January 2026, CICT was awarded the tender for the mixed-use Hougang Central Government Land Sales (GLS) site which it had submitted with partners including CapitaLand Development. CICT will develop and own 100% of the commercial component, deepening our presence in Singapore and expanding our retail footprint in the northeast. The approximately S$1.1 billion development cost translates to about $3,600 psf and an expected yield on cost of over 5%, which compares favourably with recent retail transactions at the low-tomid 4% level. This allows CICT to shape the mall’s design, positioning, and leasing strategy from inception. Also in January 2026, CICT announced the divestment of Bukit Panjang Plaza7 for S$428.0 million at an exit yield of around the mid-4% level. This forms part of CICT’s broader portfolio reconstitution strategy to redeploy capital into growth opportunities or other strategic purposes. From 3Q 2026, Capital Tower, a Grade A office building, will undergo an approximately S$25 million AEI, which will reposition Level 9 into a community space and create a higher-yielding F&B space with a multi-tenanted retail pavilion on Level 1. Works are to complete in 4Q 2027. Growing Responsibly We are committed to growing CICT responsibly to create long-term value for unitholders. Our portfolio remained 100% green‑rated as at end-2025, reflecting our continued focus on carbon emissions reduction and energy efficiency. During the year, three properties upgraded their building certifications. The Atrium@ Orchard became Singapore’s first operational officeretail building to achieve the Building and Construction Authority’s (BCA) Green Mark Platinum (Super Low Energy), while Asia Square Tower 2 also attained the same certification. In addition, Raffles City Singapore was upgraded to Green Mark Platinum from GoldPLUS. These achievements underscore our commitment to sustainable asset management and operational excellence amid increasingly rigorous BCA standards. Disciplined Capital Management We believe adopting a disciplined and proactive capital management approach will enable us to preserve a strong balance sheet. In an environment of evolving interest rate dynamics and macroeconomic uncertainties, we maintained a healthy and resilient balance sheet through prudent financial stewardship. As at 31 December 2025, CICT’s aggregate leverage was 38.6%, while the average cost of debt fell 0.4% YoY to 3.2%. Fixed rate debt accounted for approximately 74% of our total borrowings, providing stability against market volatility. Our debt maturity profile remained wellstaggered, with an average term-to-maturity of 4 years, mitigating refinancing risks in any single year. A more accommodative interest rate environment in Singapore during 2025 supported our capital management efforts. For our last issuance in September 2025, we secured S$300 million 7-year fixed rate notes at 2.25% per annum. We also continue to diversify funding sources, tapping into sustainability linked and green loan facilities and green bonds. As at end-2025, sustainability linked and green loans and bonds accounted for about 63.1% of the total borrowings. CICT maintained its A3 credit rating with a stable outlook by Moody’s and A- by S&P, reflecting the strength of our balance sheet and sound financial governance. Chairman and CEO Message 7 90 out of 91 strata lots held by CICT.
RkJQdWJsaXNoZXIy NTkwNzg=