Feature: the 6 “I”S - Tampines Mall • Junction 8 • Funan Digitalife Mall • IMM Building Maximising

CAPITAMALL TRUST

Inviting malls that give you so much more

inspire report to unitholders 2005 REPORT TO UNITHOLDERS 2005

inspire Creating ... value Feature: The 6 “i”s - Tampines Mall • Junction 8 • Funan DigitaLife Mall • IMM Building Maximising ... returns Ingenious Growth Strategies Plaza Singapura • Bugis Junction • Hougang Plaza Units • Sembawang Shopping Centre Jurong Entertainment Centre Transforming ... experiences Corporate Information

CAPITAMALL TRUST THE MANAGER

REGISTERED ADDRESS REGISTERED ADDRESS EXECUTIVE COMMITTEE HSBC Institutional Trust Services (Singapore) CapitaMall Trust Management Limited Mr Liew Mun Leong Limited 39 Robinson Road Mr Pua Seck Guan 21 Collyer Quay #18-01 Robinson Point Mr Kee Teck Koon #14-01 HSBC Building Singapore 068911 Mr Olivier Lim Tse Ghow Singapore 049320 Phone: +65 6536 1188 Phone: +65 6534 1900 Fax: +65 6536 3884 AUDIT COMMITTEE Fax: +65 6533 1077 Mr Hsuan Owyang DIRECTORS OF THE MANAGER Mr James Glen Service WEBSITE ADDRESS Mr Hsuan Owyang Mr David Wong Chin Huat www.capitamall.com Chairman & Independent Non-Executive Director Mr Olivier Lim Tse Ghow Email: [email protected] Mr Liew Mun Leong CORPORATE DISCLOSURE COMMITTEE Deputy Chairman & Non-Executive Director Trustee Mr Hsuan Owyang HSBC Institutional Trust Services (Singapore) Mr Pua Seck Guan Mr Liew Mun Leong Limited Chief Executive Offi cer & Executive Director Mr Kee Teck Koon 21 Collyer Quay Mr Olivier Lim Tse Ghow #10-01 HSBC Building Mr James Glen Service Singapore 049320 Independent Non-Executive Director COMPANY SECRETARY Phone: +65 6534 1900 Ms Michelle Koh Fax: +65 6533 1077 Mr David Wong Chin Huat Independent Non-Executive Director AUDITOR KPMG Mr S. Chandra Das Certifi ed Public Accountants Non-Executive Director 16 Raffl es Quay Mr Hiew Yoon Khong #22-00 Hong Leong Building Non-Executive Director Singapore 048581 Phone: +65 6213 3388 Mr Kee Teck Koon Fax: +65 6225 0984 Non-Executive Director Partner-In-Charge : Leong Kok Keong (Since fi nancial period ended Mr Olivier Lim Tse Ghow 31 December 2002) Non-Executive Director

UNIT REGISTRAR Lim Associates (Pte) Ltd 10 Collyer Quay #19-08 Ocean Building Singapore 049315 Phone: +65 6536 5355 Fax: +65 6536 1360 CONCEPT, DESIGN AND PRODUCTION BY LEXISBRANDING .COM CONCEPT, INtroduction

CapitaMall Trust (CMT), which was listed in July 2002, is the ﬁ rst Real Estate Investment Trust (REIT) to be listed on Singapore Exchange Securities Trading Limited. As at 31 December 2005, we are the largest REIT by market capitalisation and asset size in Singapore, with a market capitalisation of approximately S$3.1 billion and an asset size of S$3.4 billion.

CMT invests primarily in quality income-producing retail properties in Singapore. Income is mainly derived from rental payments received from a diverse list of over 1,200 leases with local and international retailers. Our portfolio comprises nine quality retail malls which are spread across Singapore in the suburban and central areas. CMT also has a 27.2 percent stake in CapitaRetail Singapore Limited (CRS), a private retail property fund sponsored by CapitaLand Limited, through the Class E bonds issued by CRS. CRS owns three other suburban malls in Singapore.

CMT is a component of various key indices which include the Morgan Stanley Capital International, Inc (MSCI) Index, the FTSE European Public Real Estate Association (EPRA) / National Association of Real Estate Investment Trust (NAREIT) Global Real Estate Index, the Global Property Research (GPR) General Property Shares Index, the GPR 250 Global Property Shares Index, the GPR 250 Global REIT Index and the Straits Times Index.

CMT is managed by an external manager, CapitaMall Trust Management Limited, which is an indirect wholly- owned subsidiary of CapitaLand Limited, one of the largest listed real estate companies in Asia. INdex

INTRODUCTION

Corporate Proﬁ le 01 Vision & Mission 04 Key Achievements in 2005 05

INSIGHTS INTO GROWTH

Track Record of Value Creation • Consistently Outperformed 30 Distribution Per Unit Forecast • Distribution Per Unit Growth Trend 31 • Core Drivers of Distribution Per Unit Growth 31 • Strong Rental Renewal Rates 32 • High Occupancy Rates 32 • Increasing Shoppers’ Trafﬁ c 33 • Our Shoppers Speak 34 • Our Tenants Speak 36

INGENIOUS VALUE CREATION IN CONVERSATION & GROWTH STRATEGIES Letter to Unitholders (English) 12 The 6 “i”s 09 Letter to Unitholders (Chinese) 18 • Integrated Retail Real Financial Highlights 22 Estate Platform Milestones 25 • Intrinsic Organic Growth • Innovative Asset Enhancement Initiatives • Inviting Experiences • Invaluable Investments • Intensive Capital & Risk Management

INSPIRING LEADERSHIP

Trust Structure 40 Corporate Governance 41 Board of Directors 52 The Trust Management Team 56 The Property Management Team 60

2 > inspire INCREASING DOMINANCE INTEGRATING PEOPLE & SOCIETY Portfolio at a glance 92 Tampines Mall 96 Human Resources 64 Junction 8 104 Corporate Social Responsibility 66 Funan DigtaLife Mall 112 IMM Building 120 Plaza Singapura 128 Bugis Junction 136 Hougang Plaza Units/ 144 Sembawang Shopping Centre/ Jurong Entertainment Centre/

IN REVIEW

Market Overview 76 Operations & Financial Review 78 Accounting Policies 89

INVESTOR RELATIONS IN DETAILS

Investor Relations 70 Financial Statements 152 Financial Calendar 71 Unitholders Statistics 191 Comparative Price Trend 72 Additional Information 193 Comparative Yields / CMT Monthly Trading Performance in 2005 73

inspire > 3 Vision & Mission

VISION Creating Value, Maximising Returns, and Transforming Experiences for all Stakeholders

CapitaMall Trust’s vision embraces all our stakeholders. We rely on the continued and combined support of our Unitholders, business partners, tenants, shoppers and employees alike to achieve this vision and, in return, share with them the fruits of our success.

MISSION To deliver stable distributions and sustainable total returns to Unitholders

4 > inspire Achievements in 2005

+27.3% UNIT PRICE APPRECIATION S$770.6 million +33.1% ACQUISITIONS TOTAL RETURNS FOR +14.4% Acquisition of Four Assets worth over S$770.69 UNITHOLDERS million

Capital Appreciation of 27.31 percent and PROPERTY VALUATION Increase in Property Valuation of 14.46 percent Total Returns of 33.12 percent for Unitholders

INCREASED MARKET CAPITALISATION IMPROVEMENTS IN RENTAL RENEWALS +47.6 % Market Capitalisation increased 47.610 percent +12.6% +25.4% to approximately S$3.1 billion PRECEDING RENTAL RATES +6.8% NET ASSET VALUE PER UNIT Adjusted Net Asset Value per Unit S$3.1 billion FORECAST RENTAL RATES increased 25.47 percent Rental Renewals outperformed Preceding Rental Rates by 12.63 percent and Forecast Rental Rates by 6.84 percent. INCREASED ASSET SIZE INCREASED GROSS REVENUE +47.8% +37.2% Asset Size increased 47.88 percent to approximately S$3.4 billion Gross Revenue increased 37.25 percent to nearly S$243 million S$3.4 billion S$243 million

1. Based on the CMT closing unit price of S$1.76 on 31 December 2004 and the closing unit price of S$2.24 on 30 December 2005. 2. Based on total DPU of 10.23 cents for the fi nancial year ended 31 December 2005, the closing unit price of S$1.76 on 31 December 2004 and the closing unit price of S$2.24 on 30 December 2005. 3. Based on the fi rst year rental rate of the new lease versus the last year rental rate of the old lease. 4. Forecast rental rates for the period 1 January 2005 to 30 October 2005 is the basis for forecast shown in CMT Circular dated 20 July 2004 and the forecast rental rates for the period 31 October 2005 to 31 December 2005 is the basis for the forecast shown in the CMT Circular dated 18 October 2005. 5. Based on the gross revenue of S$177.2 million for the fi nancial year 2004 and the gross revenue of S$243.1 million for the fi nancial year 2005. 6. Based on the valuation of Tampines Mall, Junction 8, Funan DigitaLife Mall, IMM Building and Plaza Singapura as at 1 December 2004 and 1 December 2005. 7. Based on adjusted net asset value per Unit of S$1.63 as at 31 December 2005 and S$1.30 as at 31 December 2004. 8. Based on an asset size of S$2.3 billion as at 31 December 2004 and an asset size of S$3.4 billion as at 31 December 2005 9. Valuation of S$580.8 million for Bugis Junction as at 18 July 2005, valuation of S$39.7 million for approximately 92.4 percent of the total share values in Hougang Plaza as at 21 April 2005 and S$4.6 million for approximately 4.3 percent of the total share values in Hougang Plaza as at 15 June 2005, S$79.0 million for Sembawang Shopping Centre as at 28 April 2005 and S$69.1 million for Jurong Entertainment Centre as at 30 June 2005, all of which were determined by CB Richard Ellis (Pte) Ltd using the Capitalisation of Income Approach, Discounted Cash Flow Analysis and Direct Comparison Method. 10. Based on the market capitalisation of S$2.1 billion as at 31 December 2004 and the market capitalisation of S$3.1 billion as at 31 December 2005. inspire > 5 6 > inspire INgenious Growth Strategies

We proactively manage CapitaMall Trust to create value and growth: We have grown our business through yield-accretive acquisitions, innovative asset enhancements and proactive management of our properties. And, we have grown it by being open to new ideas and cultivating our capacity to be imaginative when it comes to unlocking value for our stakeholders. We call our proven value creation cum growth strategies, The 6 ‘i’s.

inspire > 7 Growth Strategies

CapitaMall Trust (CMT) Growth Strategies

The

6 “i”s Growth Strategies

The • INtegrated Retail Real Estate Platform

• INtrinsic Organic Growth

• INnovative Asset Enhancement Initiatives CapitaMall Trust (CMT) Growth Strategies • INviting Experiences “i”s • INvaluable Investments 6 • INtensive Capital & Risk Management Growth Strategies

In addition, we have a professional and experienced team of fund and asset managers who work closely INtegrated Retail and seamlessly with each other to: Real Estate Platform: • Formulate medium and long-term strategies and initiatives to deliver higher sustainable returns We leverage on our strong sponsor, CapitaLand Limited’s, unique integrated • Enhance the shopping experience to attract and increase shoppers’ trafﬁ c retail real estate platform, combining the best of retail real estate management and • Review space usage to optimise income capital management capabilities, which is • Manage and monitor rental arrears to minimise bad one of its kind in Asia. debts • Manage projects to ensure timely completion within budgets INTEGRATED RETAIL REAL ESTATE PLATFORM Net Property Investment • Manage and monitor property expenses to maximise Income Returns RETAIL CAPITAMALL UNITHOLDERS net property income REAL ESTATE TRUST Investment Ownership • Address all key operational issues to ensure REAL ESTATE CAPITAL MANAGEMENT PLATFORM RETAIL MANAGEMENT PLATFORM alignment with the Manager’s strategies

Retail Design & Fund • Manage lease renewals and new leases diligently Property Management Strategic Asset Strategic Development Structuring & Management & Operational Marketing Management Planning & Management Management to minimise rental voids 1Leasing Investment Growth Strategies

INtrinsic Organic Growth: A major component of CMT’s growth has been achieved through: Inherent to our strategy for maximising • Step-up rent which typically provide an organic CMT’s performance is the exploration of growth of 1.0 to 2.0 percent annually new avenues for stable and sustainable • Gross turnover rent, tied to about 0.5 to 1.0 percent revenue growth from our tenants and of our tenants’ sales, which is a useful management malls. tool, and aligns CMT’s interests with those of the tenants

• Non-rental income, from car parks, vending machines, casual leasing, customer service counters and advertisement panel spaces as well as advertising on escalators, link bridges, in lifts and other common areas

• Improved rental rates for lease renewals and new 2 leases Growth Strategies

INnovative Asset

Enhancement Initiatives: Diverse ways to increase the yield and productivity of our retail space include:

Creative asset planning unlocks the • Decantation whereby lower yielding spaces are potential value of CMT’s malls to transformed into higher yielding spaces further propel growth by enriching the • Reconﬁ guration of retail spaces to achieve retail environment and enhancing the higher productivity through sub-division of attractiveness of our malls to shoppers bigger retail units into a number of smaller ones and retailers. • Maximising the use of common areas, such as bridge space, and converting equipment areas into leasable space

• Upgrading amenities, adding play and rest areas, setting design guidelines and standards for shop fronts and creating better shopper circulation which increase the attractiveness of our malls 3 Growth Strategies

INviting Experiences: The increasing shoppers’ trafﬁ c is generated through: • Alignment of tenancy mix with current market trends which ensures a continuing good mix of Staying ahead of consumer trends, we attractive and popular retail outlets in our malls constantly reinvent the retail experience • New retail concepts which generate fresh with innovative shopping, dining and excitement and positive sales leisure combinations which helps to • Enhancing shoppers’ experience with a more maximise the sales of the tenants and pleasant, comfortable and exciting environment by generates growth through improved improving connectivity between ﬂ oors, installing electronic car park guidance systems, upgrading rental income. restroom facilities, baby nursing rooms, children’s playgrounds and alfresco dining areas

• Innovative marketing and promotion events which draw in the crowds

• Attractive shop fronts and visual merchandising 4 design ideas Growth Strategies

INvaluable Investments: • Our investments must satisfy the investment criteria of (a) upfront yield accretion, (b) rental The ability to identify yield-accretive sustainability and (c) potential for value creation. acquisitions and investments to add to • We aim to grow our asset size in Singapore to S$5.0 the portfolio and further enhance their billion to S$6.0 billion by 2008. value is central to CMT’s growth. • Our 27.2 percent investment in CapitaRetail Singapore Limited (CRS), whose portfolio consists of Lot One Shoppers’ Mall, Bukit Panjang Plaza and Rivervale Mall, has produced a minimum coupon rate of 8.2 percent per annum. The valuation of the CRS portfolio has increased from S$540.0 million (as at 1 December 2004) to S$558.0 million (as at 1 December 2005). CapitaMall Trust has the right of 5 ﬁ rst refusal to purchase these properties. Growth Strategies

INtensive Capital and Risk Management:

We review our debt and capital management cum ﬁ nancing policy regularly so as to optimise CMT’s funding structure. We also monitor our exposure to various risk elements by closely adhering to clearly established 6 management policies and procedures. 10 > inspire IN Conversation

We continually seek new acquisitions: Yield-accretive acquisitions. We have a diverse portfolio of valuable assets. And, we aim to add further properties that complement our current assets and contribute to our geographically diverse portfolio. By owning multiple properties in multiple parts of Singapore, we can cater to differing tenancy demands and explore more value-adding opportunities to drive Distribution per Unit growth.

inspire > 11 IN Conversation_ Letter to Unitholders

On behalf of the Board of CapitaMall Trust Management Limited (CMTML), the Manager of CapitaMall Trust (CMT), we present the report of CMT for the year ended 31 December 2005.

2005 has been a remarkable year of achievement for CapitaMall Trust (CMT). With four new acquisitions at a total purchase price of S$770.61 million, the largest quantum of assets purchased in a year since CMT was listed in July 2002, we have grown CMT’s asset size to S$3.4 billion and market capitalisation to S$3.12 billion, further strengthening our position as the largest Real Estate Investment Trust (REIT) by asset size and market capitalisation in Singapore. In addition, we have gained market dominance with an enlarged portfolio of nine malls across Singapore, bringing us a step closer to achieve our target asset size of S$4 billion to S$5 billion locally by 2007.

FINANCIAL PERFORMANCE Singapore’s economy, building from 2004’s solid base and beneﬁ ting from the favourable external environment and the government’s restructuring and upgrading efforts, continued to perform strongly particularly in the second half of the year. Gross Domestic Product (GDP) in 2005 grew 6.43 percent over 2004. Besides the good economic performance, we saw a record high 8.9 million in tourist arrivals, increased retail and catering sales ﬁ gures, positive business sentiments among retailers and high demand for space from local and international retailers.

1. Aggregate purchase price for the acquisition of Bugis Junction (S$580.8 million), Sembawang Shopping Centre (S$78.0 million), Hougang Plaza Units (S$43.8 million) and Jurong Entertainment Centre (S$68.0 million). 2. Based on the CMT closing unit price of S$2.24 on 30 December 2005. 3. Source: Ministry of Trade and Industry.

12 > inspire HSUAN OWYANG PUA SECK GUAN CHAIRMAN CHIEF EXECUTIVE OFFICER

inspire > 13 IN Conversation_ Letter to Unitholders

High Occupancy and Strong Rental Renewal Rates 30 June 2005 (78.8 percent) and 16 August 2005 (4.3 percent). Bugis The overall positive economic sentiments, together with the higher Junction and Jurong Entertainment Centre were acquired for S$580.8 domestic consumer confi dence, continued to sustain the close to 100 million and S$68.0 million, respectively on 31 October 2005. The four percent occupancy rates and strong rental renewal rates at our malls, yield-accretive acquisitions, totalling S$770.6 million, offered further which were 12.64 percent and 6.85 percent better than preceding and geographic diversifi cation benefi ts by allowing CMT to cater to forecast rental rates, respectively. tenancy demands in different parts of Singapore. They also provided CMT with an opportunity to increase our free fl oat and trading Stable Distributions and Attractive Total Returns liquidity. In addition, CMT reduced our total net property income In line with our vision to deliver stable distributions and sustainable derived from any one property to no more than 23.3 percent, down total returns to Unitholders, CMT has continued to outperform our from 30.0 percent for the same period last year (from 31 October 2005 forecasts to deliver a total Distribution per Unit (DPU) of 10.23 cents to 31 December 2005). More importantly, the new assets provided for the fi nancial period ended 31 December 2005. This was 8 percent CMT with a continuous pipeline of value-adding opportunities within above the total DPU payout of 9.48 cents for the fi nancial period ended the portfolio which will drive DPU growth for Unitholders in the next 31 December 2004. For Unitholders who have held CMT units since 1 few years. January 2005, they would have enjoyed a total return of 33.16 percent as at 31 December 2005. For Unitholders who have invested in CMT A strong testament to our ability to proactively manage our assets since our Initial Public Offering (IPO) in July 2002, they would have to deliver enhanced returns was when we successfully unlocked enjoyed a total return of 165.87 percent as at 31 December 2005. the value of Seiyu’s master lease at Bugis Junction, even prior to the completion of the acquisition. The surrender of part of the The sterling performance in 2005 was mainly due to the addition of space under the master lease by Seiyu generated an additional net the four new properties to CMT’s portfolio, the receipt of interest property income of S$3.169 million. As a result, the property yield of income from CMT’s investment in Class E bonds issued by CapitaRetail Bugis Junction increased from 5.010 percent to 5.311 percent in 2005, Singapore Limited and a full-year contribution from Junction 8’s new and from 5.312 percent to 5.613 percent in 2006. Concurrently, CMT’s extension which was completed in December 2004. Higher rental forecast DPU also increased from 10.6414 cents to 10.8115 cents in income on new and renewed leases from other malls and rental 2005, and from 10.8816 cents to 11.0417 cents in 2006. income from newly created retail spaces at Tampines Mall and Funan DigitaLife Mall also contributed to an increase in gross revenue. Another clear endorsement of our proactive management skillset was when Urban Redevelopment Authority (URA) granted CMT KEY DEVELOPMENTS Outline Permission to convert 45,267 sq ft of residential Gross Floor CMT’s DPU has grown 62.58 percent since IPO and yield-accretive Area (GFA) to commercial GFA at Sembawang Shopping Centre, a acquisitions, innovative asset enhancements and active leasing 999-year leasehold commercial cum residential development. We have each contributed 49.0 percent, 20.5 percent and 19.2 percent, had assumed nil contribution from the residential component when respectively, to the DPU growth. These three key components Sembawang Shopping Centre was purchased. continued to play a prominent role in driving DPU growth in 2005. Increased Market Capitalisation, Free Float Yield-Accretive Acquisitions & Proactive Management and Trading Liquidity CMT acquired Sembawang Shopping Centre for S$78.0 million on To part-fi nance the acquisitions, 173.4 million new units were 10 June 2005. This was shortly followed by the acquisition of 96.7 issued in October 2005. CMT’s free fl oat was also increased from percent of the strata area of Hougang Plaza, which was progressively 61.018 percent to 66.019 percent. As a result, CMT’s Unitholder base purchased for a total of S$43.8 million on 20 June 2005 (13.6 percent), was enlarged with the addition of many new institutional investors,

4 Based on the fi rst year rental rate of the new lease versus the last year rental rate of the old lease. 8 Based on annualised distribution per unit forecast of 6.78 cents shown in the CMT Offering Circular dated 28 5 Forecast rental rates for the period 1 January 2005 to 30 October 2005 are the basis for the forecast shown June 2002 and the annualised distribution per unit of 11.02 cents for the period 31 October 2005 to 31 December in the CMT Circular dated 20 July 2004 and the forecast rental rates for the period 31 October 2005 to 31 2005. December 2005 are the basis for the forecast shown in the CMT Circular dated 18 October 2005. 9 Based on the projection in 2006, together with the accompanying assumptions, in th CMT Circular dated 18 6 Based on total DPU of 10.23 cents for the fi nancial year ended 31 December 2005, the closing unit price of October 2005. S$1.76 on 31 December 2004 and the closing unit price of S$2.24 on 30 December 2005. 10 Annualised fi gure based on CMTML’s forecast, together with the accompanying assumptions, for the period 1 7 Based on total actual DPU of 31.12 cents since the listing of CMT on 17 July 2002 and the Initial Public Offering November 2005 to 31 December 2005, as set out in the CMT Unitholders’ Circular dated 16 September 2005. Price of CMT units of S$0.96 and the closing unit price of S$2.24 on 30 December 2005. 11 Annualised fi gure based on CMTML’s forecast, together with the accompanying assumptions, for the period 1 November 2005 to 31 December 2005, as set out in the CMT Circular dated 18 October 2005. 14 > inspire including a substantial number of quality investors from Switzerland 2004, the full impact of the revenue contribution was felt in 2005. and Australia. As at 31 December 2005, CMT’s market capitalisation Revenue year-on-year at Junction 8 was up from S$33.5 million has increased by 47.620 percent to approximately S$3.1 billion. With to S$40.4 million, representing a 20.6 percent increase, and Net CMT’s inclusion in the Straits Times Index in March 2005, along Property Income (NPI) also rose from $21.3 million to S$26.5 million, with our earlier inclusion in other key indices such as the Morgan representing an increase of 24.4 percent. Stanley Capital International, Inc (MSCI) Index, the FTSE European Public Real Estate Association (EPRA) / National Association of Real Other than major asset enhancement works, we are also constantly Estate Investment Trust (NAREIT) Global Real Estate Index, the Global exploring different avenues to enhance the value of our assets. Property Research (GPR) General Property Shares Index, the GPR 250 Through initiatives such as the extension of lease lines at Tampines Global Property Shares Index and the GPR 250 Global REIT Index, Mall and the relocation of Air Handling Units (AHUs) at Junction 8 CMT’s trading liquidity for the full year 2005 improved signifi cantly to to create more retail space, we were able to increase Net Lettable approximately 354 million units. This was an increase of 15 percent Area by 4,855 sq ft which translated to a rental increase per annum over the approximately 308 million units traded for the full year of S$1.1 million. A reduction in operational expenses, through the 2004. bulk purchase of utilities, also contributed to an increase in NPI per annum of S$1.2 million. In 2006, the recovery of 12,000 sq ft of space, Completed Asset Enhancement Initiatives through the relocation of AHUs at Plaza Singapura, is expected to We are constantly reviewing the concepts, tenant mix and layout of provide a rental increase per annum of S$0.9 million. our malls. 2005 was a busy year with one major rebranding exercise and with many asset enhancement initiatives successfully executed Increased Value of Property Portfolio on schedule. With the four acquisitions, CMT’s asset size increased 47.8 percent, from S$2.3 billion (as at 31 December 2004) to S$3.4 billion (as at 31 In May 2005, Funan The IT Mall was rebranded as Funan DigitaLife December 2005). Part of this increase was attributable to the value Mall to better refl ect the tenant mix and the positioning of the mall. creation at the malls which had their valuation increased by 14.421 The rebranding exercise was also tied in with the launch of “Inbox5”, percent from S$2,235.0 million (as at 1 December 2004) to S$2,556.5 a thematic zone on Level 5 with a focus on digital and electronic million (as at 1 December 2005). devices, in June 2005. Over at Tampines Mall, the food kiosk area was reconfi gured which increased the total number of food kiosks Planned Asset Enhancement Initiatives from 13 to 18. The reconfi guration initiative, which was completed CMT’s key growth drivers for the next three years will be from asset in October 2005, incurred a capital expenditure of S$2.9 million, but enhancements undertaken at IMM and Sembawang Shopping created additional net property income of S$0.4 million per annum Centre. and achieved a return on investment of 12.2 percent. With the launch of “Inbox5” at Funan DigitaLife Mall and reconfi guration of IMM Building the food kiosk area at Tampines Mall, coupled with the other asset Asset enhancement works at IMM will commence in fi rst quarter 2006. enhancement initiatives at IMM Building, Plaza Singapura and Jurong The asset enhancement plan involves the decantation of 64,800 sq ft Entertainment Centre, a total of S$2.2 million of rental revenue per of NLA from the secondary corridor spaces at the mall and its transfer annum was created in 2005. In addition, all projects undertaken met to a two-storey retail extension block which will be constructed on our minimum return of investment criteria of 10.0 percent. the existing open-air car park space. The commencement of the work follows the provisional permission obtained from the URA to increase As Junction 8’s new retail extension was completed only in December the allowable commercial GFA from 26.8 percent to 40.0 percent, subject to the payment of a differential premium. The 13.2 percent

12 Based on the projection for 2006, together with the accompanying assumptions, in the CMT Unitholders’ 17 Based on the projection for 2006, together with the accompanying assumptions, in the CMT Circular dated 18 Circular dated 16 September 2005. October 2005. 13 Based on the projection for 2006, together with the accompanying assumptions, in the CMT Circular dated 18 18 As at 31 December 2004. October 2005. 19 As at 31 December 2005. 14 Annualised ﬁ gure based on CMTML’s forecast, together with the accompanying assumptions, for the period 1 20 Based on the market capitalisation of S$2.1 billion as at 31 December 2004 and the market capitalisation of November 2005 to 31 December 2005, as set out in the CMT Circular dated 18 October 2005. S$3.1 billion as at 31 December 2005. 15 Annualised ﬁ gure based on CMTML’s forecast, together with the accompanying assumptions, for the period 1 21 Based on the valuation of Tampines Mall, Junction 8, Funan DigitaLife Mall, IMM Building and Plaza November 2005 to 31 December 2005, as set out in the CMT Circular dated 18 October 2005. Singapura as at 1 December 2004 and 1 December 2005. 16 Based on the projection for 2006, together with the accompanying assumptions, in the CMT Circular dated 18 October 2005. inspire > 15 IN Conversation_ Letter to Unitholders

increase granted by URA effectively translates to approximately fund managers and media, recognises the timeliness, clarity and 188,000 sq ft of additional commercial GFA at the mall. With the comprehensiveness of the information we disclose and our strong increase in commercial GFA, we were able to optimise the asset commitment to good investor relations. We will seek to uphold the enhancement plan and the project is expected to increase net highest level of corporate governance and transparency standards for property income by S$9.3 million per annum. The estimated capital CMT. expenditure is S$92.5 million and the target return of investment is 10.1 percent. The asset enhancement work is expected to be CORPORATE SOCIAL RESPONSIBILITY completed by fi rst quarter 2008. Whilst we considered ways to add value to our Unitholders, we also thought of how we could turn our malls into centre of activities to Sembawang Shopping Centre embrace and benefi t the community. A key milestone was achieved We have developed the asset enhancement plan which incorporates when we handed over 55,000 sq ft of rent-free lettable space at an additional 45,267 sq ft of GFA from the decantation of the Junction 8’s offi ce tower to the National Council of Social Service for residential block. The decanted space from the residential block and their Voluntary Welfare Organisations. Earlier, 70,000 sq ft of gross part of the retail space on Level 4 will be transferred to create more fl oor area was transferred from the offi ce tower to the retail portion prime retail space on three levels of an extension which will be built of Junction 8. The offi ce tower would have had to be demolished to on a plot of land adjoining the mall. The decanted space on Level 4 maintain Junction 8’s original total gross fl oor area. will be converted to an Open Landscape Plaza which will feature a children’s playground and an event space. The project is expected In addition, we have created open landscaped plazas on the rooftops to incur a capital expenditure of S$38.9 million, and is expected to of Tampines Mall and Junction 8 which are excellent locations for increase net property income by S$3.7 million per annum and achieve events and activities, and we have made them available to charitable a return on investment of 9.5 percent. Construction of the extension organisations to further our corporate social responsibility goals. block is expected to commence in end 2006 and is expected to be completed by end 2008. LOOKING FORWARD Strategic Initiative Funan DigitaLife Mall As at 31 December 2005, we have 60.622 percent and 77.622 percent Asset enhancement work has started on the development of a two- of our tenants on step-up rental and Gross Turnover Rent (GTO) storey annex which will add close to 8,000 sq ft of NLA to Funan respectively. As we gradually move towards a new rental structure of DigitaLife Mall. The adjoining annex, which will be constructed at either a base rent plus a percentage of GTO or a percentage of GTO, a capital expenditure of S$5.0 million, is expected to increase net whichever is higher, we will be progressively rolling out the Point of property income by S$0.5 million per annum and provide a return on Sales (POS) system to all malls across the portfolio so as to capture investment of 10.1 percent. The project is expected to be completed tenants’ sales more effi ciently and effectively. We have started to by second quarter 2006. Funan DigitaLife Mall still has approximately pilot the POS system at Junction 8 and achieved over 90 percent 300,000 sq ft of unutilised GFA, and we will actively explore its subscription rate. Deployment of the POS system will also enable us utilisation when the opportunity arises. to capture the revenue upside from GTO rent.

INVESTOR RELATIONS & CORPORATE GOVERNANCE Well-Positioned to Capitalise on Guidelines and Budget CMT was honoured to win the ‘Most Transparent Company’ Award Changes at the Securities Investors Association (Singapore) (SIAS) Investors’ In October 2005, the Monetary Authority of Singapore reﬁ ned its Choice Awards held in October 2005 for the second year running. Property Funds Guidelines to, among other things, strengthen the The prestigious award, for which we were nominated by analysts, corporate governance of REITs and incorporate higher ﬂ exibilities in

22 Excluding Sembawang Shopping Centre which was acquired in June 2005, Hougang Plaza Units which were acquired in June and August 2005 and Jurong Entertainment Centre which was acquired in October 2005.

16 > inspire the investment activities by REITs. The key changes to the guidelines enhance the retail experience for our shoppers. We will also continue include providing clear provisions and stipulations to facilitate the to optimise CMT’s capital structure, actively pursue yield-accretive acquisition of foreign property assets and the partial ownership of acquisitions and improve operational effi ciencies at the malls. property assets by REITs. More importantly, the leverage limit was Barring any unforeseen circumstances, we are confi dent of delivering increased from 35.0 percent to 60.0 percent, subject to the REIT the 2006 forecast DPU of 11.0423 cents per unit. obtaining and disclosing a credit rating by a major rating agency. ACKNOWLEDGEMENTS Clearly, to enhance the competitive advantage of Singapore REITs In July 2005, Mr Lui Chong Chee stepped down from the Board after and to further grow Singapore as the REIT fi nancial centre, the serving for more than 3 years. We would like to thank him for his government announced in its Budget 2006 on 17 February 2006 invaluable contributions. We also welcome our new Director, Mr that tax exemptions granted to Singapore REITs will be extended Olivier Lim, from whose expertise we are confi dent we will benefi t. to include foreign-sourced interest and distributions by foreign trusts paid out of income or gains related to ownership of foreign We would like to thank our Board of Directors, Unitholders, business properties. In addition, Singapore REITs will be able to recover Goods partners, customers, tenants, shoppers and staff for their contributions and Services Tax (GST) on expenses incurred to structure and set up to our performance. With the continued support of all stakeholders, various tiers of Special Purpose Companies (SPCs) to hold overseas CMT aims to continue to create value through proactively managing non-residential properties. GST incurred on acquiring overseas non- our assets so as to maximise returns to Unitholders, and at the same residential properties and operating the SPCs is also recoverable. time, endeavour to provide shoppers with one of the best retail experiences at our malls. CMT, with its competitive cost of capital structure, conservative debt structure and low gearing ratio of 31.7 percent as at 31 December 2005, is well poised to benefi t from the increased gearing limit. Through leveraging on our six established value creation cum growth strategies, termed as the Six “i”s, we will continue to pursue yield accretive acquisitions in Singapore to grow CMT’s asset size to a higher target of S$5.0 billion to S$6.0 billion by 2008. We have now grown to a signifi cant size where we can capitalise on our scale to take on investment and development projects. This option is further facilitated by the government’s latest guideline change which allows REITs to take on development projects up to no more than 10 percent of their deposited assets. Over the medium-term, we will also explore how CMT Unitholders can benefi t from having an exposure in overseas assets so to provide them with a new wing of growth.

HSUAN OWYANG PUA SECK GUAN 2006 Objectives CHAIRMAN CHIEF EXECUTIVE OFFICER This year, we will be focused on executing the various planned asset enhancement initiatives with minimal impact to existing revenue streams and will continue to explore value creation opportunities at 11 March 2006 our malls. In addition, we will further strengthen the tenancy mix and

23 Based on the projection for 2006, together with the accompanying assumptions, in the CMT Circular 18 October 2005.

inspire > 17 IN Conversation_ᇈᇈ֍໑Ԃ֍໑ԂႼႼᆇྗݭᆇྗݭ

ᇈᇈ"֍໑ԂႼಭ"֍໑ԂႼಭ

୔ᄌಷ֬èთࢰᇇشࣈቀنٺો֍໑֬ٺ ໨૓࣏քѝࡈ઻ྗຈࠕࣈࡈ઻ྗ པиۡԢਛشࣈቀنٺો֍໑ٺ !֬ڸҔᆦఀ୔؎ᆭ ୔ᄌಷा൚ԂႼࡈ઻ྗຈ֍໑֬ᆴ èؚ჆ሸٺࡈ઻ྗຈܼয়Ⴜདྷ ϫܙຈܼ֬য়ࠖ ୔ᄌಷ෷૓෵ཡႼ֬ቀߴ֍໑ԂႼಭদනࢰᇇ ܉ൠ߽ເ୤฻׳ය+5<54֬܋ ܩा൹܋ᄌ൵՘ èሸ໨૓჆୔ᆴٺИ੸ເϫ ୔ᄌ୔ᄌಷ֬ࡈ઻ྗຈИ 187ѓ๮ሮ჆ࡈ઻ྗຈ֬֍໑ԂႼಭࢰᇇࢰᇇ è ᆴٺඇè ಷ෵ཡႼ֬ቀߴИ੸ເϫۨ

჆ࡈ઻ྗຈ๮ሮቍ܆୔֬ࢴԢѝཊᇽး݉୔൥۸ӵः٫ٖ֬၉୔è໨૓ၢ ໨૓ᄤؚࡈ઻ྗຈদන ࡍਛව۸ྔӈ၃çࡈ઻ྗຈ๮ሮ჆+IXQ\I:M\IQT็ލ ਛව۸ྔӈ၃ᆊ൥ࡈ઻ྗຈሸܚສྔჴ൳ ၨ ࠰ᅖ಑෵ಃ֫֬৭༖൳್ၢ-֬ྡྷنè෢ሩ ;QVOIXWZM 4QUQ\MLܚӈ၃൳֬شᄌഏ൮ၢদᄤ၉୔ୄቒս ୔ ୔ᄌຢӵছԐ֬м೽ׂϝᅦ֬಍୔ܑၨྔჴç൮ᆻᅀ ࠪಃ֫჆ࡈ઻ྗຈ֬ሮӈࡕᆻၟᅀᇇܚᆊར൳ ༅݃Ӎᄤྔቆᄆࠪ࿊ᄆܚཋèቀ൳್֬ᅀӐ၀দሸఊ෷ ׀໨૓ቛເྔࡍ௨݆଍ቒս֬٣ܬᇇၨྔჴ࣐၉ҋ܎ ହඛઙࠊ৶݃ڥދቆࣈ൳್ၢࠪ֕ѥୋ݃Ӎۡ۾١૲֬ ໑ၢሮӈ݆଍ࠪ൮ᆻࡀෟèՕ׀֬>ӈ๮ሮྗຈ:-1 ૲֬ቆࣈ൳್èג༅݃Ӎ໨૓ၟಃ֫ Ӎྔᅀന֬ਲ਼൹ܚບ෢ሩ໨૓ႡႼљҊྔࡍ௨֬!۸ ၨྔၨྔჴᇇ୔ֿఴᄤྔࡍ௨չ֥ ൮ӍႱ൤#჆ ᅡنჴ֬ሮӈ݆଍֬଩њᆾಷढ़ևè ୔؎ᇽး ࣈᅀӐਛϫنٺၢদࡈ઻ྗຈ֬ો֍໑ܩा൹܋ሸ൵՘

ར଩çԾྔ֬ሮӈᅀᆻܚ ؾक൳ၴᅀӐྦ֬൳ᆴٺ Ҕ༇ѝཊ !çϫᆴٺࣈᅀӐ੸֬ϫنٺѠ۹ᅤٺࣣ࠽ᇞቍ ࠪ࠙ࠥ֬ᅸቆ֬ڰࠕԫçႼ৭֬ບᄤߓࣩࠪᆦܬ୔֬ໞ ୔ࣈᄤنٺᆴ!èᄤգ࣐ો֍໑ٺࠪϫᆴٺ ࠪ฻ഽյേգൗྔࡍ௨ࣣ֬࠽ࡆ࿊ಃ֫ృࣘ֬ѝཊา ୔֬ݚୄഺӈቀᆻ ֬ᅀӐ١૲ᆊ೟սႀුࡆ࿊Ϲဍܸࡶ֬࢟೫è୔པиѠ൥ᄤ༶Ͻ୔èთ ࣣ࠽ѝ֬ށ֬ᅀӐèԩਛ਌ᆴٺ8ಃ֫ਛϫ,/ ར଩ܼࠪ࠙ࠥ֬য়ܚཊ֥٧֬ੱॡಭඛ၀Ծྔۡչ֥ !ສಭ՘#ਲ਼൹თӼϾ क൳ၴᅀӐྦ֬൳ ਛ೟ϟາܚ ສྔჴ൳ ᄌಷၢ୔ᅀࡍਛçਲ਼൹၃ᆇࣣ֬ഌ౭࿉ۡόؾЮ ࡈ઻ྗຈ჆شဗ༣၃֬཮൹ ֬ !ᆴٺս༷ϫ۝ޱਛܚࡈ઻ྗຈ൳ޱ༅ᇖྖè෢ܚ ૲֬ྺ౷၀ᅀࡍਛèגࠪݚࡄਲ਼൹၃ᆇؚ׀ ٺ׵൥ྡྷܚ൳ۅ ສྔჴؾቀࡕເܚұ૲࠙൳ٺ ᄌ୔çᆴٺᄌಷϫ୔ቆႯ੸ࠪృࣘ֬࿊ቆቆࣈ੸ ࢯ࣐ؔྡྷ࠮ۡ è໨૓ᆴٺಷϫ୔ ᄌ ࠪ ᆴٺᆇྗྖஒۡ֬ւ׵༶໨ ಷϫٵࠪݚୄ཯ٹఞށᄤᆣ฿ࣣ࠽৭ ສྔ ދၨ ສྔჴѠၢٺ୔ᄌಷᆴϫ֬ቆႯ੸ࠪృࣘ֬࿊ቆ ჆ٺ༅݃Ӎಃ֫ਛࣔϫܚ૓֬ ჭ঺ვৈᇖྖèࡈ઻ྗຈ๠ݝᆊދӍ݃ڣਛϩೳܚჴ൳ ٺѠಃ֫ϫٺቆࣈ੸èთჷ༼ࠪხఀ֬ቆࣈ੸པи໨૓ ܚສྔჴ֬क൳ၴᅀӐྦ֬൳ ၨ ࡕເܚࡋѝཊè ව۸ቀ൳۾֬ ᆴٺࠪϫᆴ ׀ჴئ֬ئ۾ར଩નቇྔࡍ௨۹԰֬ቆႯྺ౷Ѱւদ ܩᇠԂ܋ࣈࠪჁಭ֬ቀߴИ য়৭ၴèᆊව۸ར଩၀ಥࡈ઻ྗຈႼ߽ࠖᅀࡍنٺໞ׮֬ ୔ᄌಷᇇࣈࠪԂ࿊֬ቀ ਏࠪ࢓ၥੇ׵ྦèՕບთಇ୔๤ఀنٺໞ׮֬܉ເ൓ࡳ໨૓ເ֍໑ԂႼಭ฻ ᆴཔиࡈ઻ྗຈࢃඒ༶֬ٺ୔ᄌಷ֬ϫ ୔ᄌಷ֬ҔᆦఀߴИ֬Ӽ୽ࡈ઻ྗຈᄤࢰᇇ ᆴࠪၢ༶èٺ၃ࠢ࠮ເ֍໑ԂႼಭւদਛ ರ၉ӈ၃෵ᅤࣱ֬ӈ၃൳್࡯ֵᇇϫ֬ށ۾୔؎ࡆ࿊ಃ֫иხఀ

୔ᄌಷçشࣈቀنٺો֍໑֬ٺ୔ᄌಷҔᆦ୔֬ओࢰᇇۻ ս۝ޱ ສྔჴç ༅ᇖྖܚၨ ສྔჴç೟ϟາӍ݃ڣϩೳܚ൳ ྔჴх൮֍໑ࡕè୔ᄌಷ֬ྔჴх൮֍໑ࡕࠪ ࡕè ֬ܚ ສྔჴ֬ቀ ສྔჴࠪჭ঺ვৈᇖྖ֍໑༷ çࡈشࣈቀنٺ൓ࡄો֍໑֬ٺಷഏ൮ၢদ֬ ᄌ ओࡈ઻ྗຈሸ୔ۻ ྔჴх൮֍໑ࡕè୔ᄌಷࡈ઻ྗຈ֬ओۻ ྔჴх൮֍໑୔ᄌಷ֬൹ࡕࠪنा܋ྔჴ֬൵՘઻ྗຈ֍໑֬! ሮਟদჾ"િ܄ҍè ࡕè ࣈࠪنٺો֍໑ხҰ୔੸ߋ֬ٺ ᄌ ಷཋ൹๠ۨ෵ਠ֬ओࡈ઻ྗຈ୔ۻ ၉୔֬ቆࣈ੸èޱओྔቆᄆ֬൵୔ቆࣈ੸ؚиࣿቆᄆ֬ቒۻ ࣈèنٺો֍໑୔੸ߋ֬ٺ୔ᄌಷ֬୔ᄌಷᇇ ᄌಷ๠ۨ෵ ୔୔ᄌಷ֬ხҰቆࣈ੸ເࡈ઻ྗຈ୔ᄌಷᇇ ୔୔ᄌಷ֬ხҰቆࣈ੸ເࡈ઻ྗຈ୔ᄌಷᇇਠ֬ხҰ၎ओ ᄌ ಷ๠ۨ෵ਠ֬ხҰ၎ओè

18 > inspire ւদԂ࿊֬వ ၟຢӵ֬ሮӈᅀᆻࡀߊލᇞး֬൥ྔӈ၃ເࡈ઻ྗຈ֬๮ሮቍ۾ ࠪӮനࡍၢࡦލ୘çቆ߃ቍۇ༅݃Ӎ֬ܚᄤᅀᆻ߽ࠖ՝ؾգ࣐֍໑ԂႼಭᄤࢫ༶দ࠲୔ৡ֬ો֍ ໨૓҉ؚؕ ୔ᅡाਛ၉۸ᇞս֬௝எᇞࢀར଩ࣈᅀӐè ะèႵ჆໨૓ᄤنٺ໑ ୔ढ़න൥લ੣֬ሮӈᅀᆻࡀߊئ೉ఀຢӵ྿܆ࠪӵ न;MQa]ᄤϩ ၉୔èن܆Ӎᆴఴѓӵ݃ڣϩೳܚ໨૓ᄤຢӵ൳ Ӎ֬ᇽቆᄆ֬ࡕᆻ၉ൠቇၢᆪଃ໨૓ܼ࠙ࠥয়ӈ݃ڣೳ ହඛઙࠊ৶ڥᄌᇞࢀ௝எເ୔ହྗ༖ग़࠶݃Ӎ჆ڥ ٩ఠᇽቆᄆ༶֬ҍ[ߴИ੸֬୆৶è;MQaۡ۾܉၃ၢ฻ ࠪ݃Ӎ֬׮໑èᄤ࣐ྡྷ௝ލ႟ቆ߃ቍ٘׀ށ۾ບࣱሮӈ൳್èႼ ݃Ӎၢѓش֬!ສྔჴ૲࠙ເ໨૓ւদਛٺ ੓๾Ԣၢඛઙࠪ׏ᄌᄤ୔ᅀ எᇞࢀ֬๤൏໨૓၀჆ᆴٺ୔՝ϫӍ֬ӈ၃൳ၴ჆݃ڣࡲ჆Օϩೳ öᇽ฼౼è֕ѥୋ݃Ӎ֬ૌ൑౼ᆴ ሷఝҒເᇽ֬õ1VJW`ٺᅀᇇϫᆴٺ୔՝ϫؾ჆ᆴٺᇇϫ ࣈ၀჆ ࣣݝᇞྔҊനൗ֫ૌ൑ฉ֬ቀඛ՝۸ฉ໑ᅀᇇ ۸ฉنٺèთՕ๤൏ࡈ઻ྗຈ֬ხఀો֍໑ ୔ᄌຢӵ֬ᇞྔҊനࡀߊ෠ᅸᇈਛ!ສ໑è჆ ٺ ୔՝ၢࠪٺ ᅀᇇٺ୔՝ ສྔჴࣱ֬ӈ၃൳ບشè ྔჴ֬ሮЮाᆭಖւদਛો୔ٺ ᅀᇇ ହඛઙࠊ৶݃Ӎ๾Ԣڥᆴ֬๮ሮߴИ੸èٺࠪϫ್ öᇽ฼౼ç֕ѥୋ݃Ӎເૌ൑౼࣐ྡྷᇞྔҊ໨૓ܼ࠙ࠥয়֬୆৶၀ႀࡈ઻ྗຈࠍ֫൮౼ᇞࢀऌ ֬õ1VJW` ჭ঺ვৈᇖྖᅡा֬ሮދ਩൏྿ढ़ᆪؾ֥֫ॣ׮è֙ऌᄔ྿໨૓ϣ!!!୔ നၢࠪᄤ155ս༷çെӳս༷֬(:= ୔ւদਛો୔ສྔჴ֬ቀቆࣈ൳௣ ӈᅀᆻࡀߊᄤ ༅ᇖྖ֬ܚᅡར଩೟ϟາنቆఀ֬ഌႯࡠህᅔ ᆴ֬ቒֵ๮ሮߴИٺઠ ್èՕບ۹ར଩यչ֥໨૓ϫܚ١ԋ֬ህᅔቀࢀሄ૲࠙ሎߗເഌႯቀࢀሄ૲࠙èᄤ ཋເਲ਼è њሠèܑ֬ٺ༅ᇖྖ൏໨૓ࡓ׮ህᅔҍܚ೟ϟາ

୔ᄌຢቛ൥ᄤ܄૲֬גਏࠪ࢓ၥੇ׵ྦ֬฻ۡ Ⴕ჆м೽ׂϝᅦছԐਲ਼൹ܩᇠԂ܋൮ᆻç ୔èм೽ׂϝᅦ֬ӵ൳್ܑཋ֬಍૲ႜའ࣎฿ཊ჆ ܚສ۸ྔ֍໑ቛເ൳ ၨྡྷن୔ᄌ໨૓჆ ᆴٺչϫڝສྔჴᅀສྔჴᅀᇇᆴ ᇶ୔൳್՝ٺਏ၀՝ϫܩᇠԂ܋ሮሀèࡈ઻ྗຈ֬ٺར଩֬ҍ ڝສྔჴᅀ#ࣱӈ၃൳್၀՝ສྔჴᅀᇇ !èႀՕࡈ઻ྗຈ֬֍໑ԂႼಭ֬ᆴٺᅀᇇϫ èᆴٺ๮ሮᆇ֬ࡍ್ؾᅀࡍఊᇖЎচ྿ չϫܙࠖྔئ۾ඛ଩၀෢ሩ ୔ᄌϖᇤ֬ۡුᇐ๮ሮᆇèࢰᇇދদሸ೒൝ئ Ӹບ໨૓၀҉ؕทะ۹ಂ֨ၢ฻܄չսᄆၨྔ ԩਛᇽး֬ሮӈᅀᆻ ᆴٺಷࡈ઻ྗຈ֬൮ᆻᅀࡍਛϫ ୔ᄌЫଳ್ݡ༳൏Иᆾඛၢ ۡሮӈᆻè๠ݝᄤ֕ѥୋ݃Ӎဃബቆਮٚຽࠪϣм೽ׂჴè෢ሩࡈ઻ྗຈ჆ ਲ਼൹३࡞֬ئ۾൝֌৭ሮЮݚࡄ ϝᅦ֬३ఞ԰য়ሔᇉ)0=బၔၢิԢۻࠪ༼ఴЫଳ್ఊ෷ᇽးᆾඛ৯೉ଐ ௣١ ࢃࣱቆਮ૲࠙64)ᅀࡍਛ܆ӈཿ߽-8:)಍ ְࡀߊ໨૓ӵ׀٣ܒ܋+1ᆾඛç.<;-୿ᇤ;5 ᇉܚӈᆾඛç಍ ԋ՝ؾಃ֫ສྔჴ֬ો୔ቆࣈᅀӐè๠ݝսਏ׀ӈ๮ሮྗຈཿ߽6):-1<಍౶٣׀ݚ٣ Ⴏനേ໨૓࡯ֵਛ႖ᄕाᆭࣱӈ၃൳್၀ಃ֫ສ܋ ಍౶ӈ၃ᆾඛç/8:ܩ౶ӈ၃ကࣵ/8:௻๠ӈ၃ ୔ࢃϣെӳս༷֬)0=బӈ๮ሮྗຈᆾඛࡈ઻ྗຈ ྔჴ֬ો୔ᅀӐè໨૓ᄤ׀಍౶٣ᆾඛၢࠪ/8:ܩ ആչսᄆၨ ၔ՝ؾิԢ௣١ԋ֬३࡞ხࡀ՝ؾಃ֫!ສྔჴۆ୔֬಍୔࢓ၥੇ׵ྦಃ֫཈ᇾ჆ ୔಍୔࢓ၥਏ֬սᄆၨ ສ۸ ֬ો୔ቆࣈᅀӐèສ۸֍໑èთ èᆴٺເϫڝ֍໑པиᅀ

୔ᄌಷ֬୔ᄌಷᇇ୔ᄌ ಷ๠ۨ෵ਠ֬ओࡈ઻ྗຈۻ ୔֬ხҰࠪࡓനè୔ᄌ ಷ๠ۨ෵ਠ֬ओࡈ઻ྗຈۻ ! 54ხҰ֬୔੸ߋඛሺࠪࡓനè>+5 ୔ᄌ୔ᄌಷᇇಷ֍໑ԂႼಭ๠ۨ෵ਠ֬୔!ᄌओࡈ઻ྗຈۻ ୔֬ხҰࠪࡓനè୔ᄌ ಷ๠ۨ෵ਠ֬ओࡈ઻ྗຈۻ ಷ֬+5<54ხҰ֬୔੸ߋඛሺࠪࡓനè ୔֬ხҰࠪࡓനè୔ᄌ ಷ๠ۨ෵ਠ֬ओࡈ઻ྗຈۻ ୔ᄌಷ֬୔ᄌಷᇇ୔ᄌ ಷ๠ۨ෵ਠ֬ओࡈ઻ྗຈۻ 54ხҰ֬୔੸ߋඛሺࠪࡓനè>+5 ࢰᇇ୔ᄌಷè ୔֬ხҰࠪࡓനèಷ֍໑ԂႼಭ๠ۨ෵ਠ֬୔!ᄌओࡈ઻ྗຈۻ ! ࢰᇇ୔ᄌಷè ୔֬ხҰࠪࡓനè୔ᄌ ಷ๠ۨ෵ਠ֬ओࡈ઻ྗຈۻ ୔ᄌಷ֬ၨྔჴ֬൮୔ᄌಷ֬ၨྔჴ֬൮ᆻࠪओࢰᇇۻ ୔ᄌಷ֬୔ᄌಷᇇ୔ᄌ ಷ๠ۨ෵ਠ֬ओࡈ઻ྗຈۻ ᆻè 54ხҰ֬୔੸ߋඛሺࠪࡓനè>+5

inspire > 19 IN Conversation_ᇈᇈ֍໑Ԃ֍໑ԂႼႼᆇྗݭᆇྗݭ

ᅀᆻ֬ލӈ၃ቍ ହඛઙࠊ৶݃Ӎହඛઙࠊ৶݃Ӎڥڥ ᆴٺᅀࡍਛϫܚࡈ઻ྗຈ֬ሮӈ݆଍ႀවརӈ၃൳ ඒࢀሄ༅ᅡڿ၉۸਍ұ੓ۡ֬نӸၟ๠ݝा܄ၨྔ ሮӈᅀᆻ୔ᄌಷᅀᇇ࠮՝ၨྔჴࢰᇇ ହඛઙࠊ৶݃Ӎᅀࡍࣔ ௣١ڥඒࢀሄ༅ࢃເڿۅ༅݃Ӎ ाܚᅀӐႼধ჆֬ٺ୔ᄌಷèҍჴࢰᇇ ሮЮᆭԢເ֬܄ඒࢀሄ༅േڿ୔ ԋࣱ֬ቆਮ૲࠙èਪࢫ֬ສྔჴࢰᇇᅀᆻ՝ၨᆴٺಃ֫ϫ ສྔჴࣱ֬ӈ၃൳್ບشສྔჴხਟढ़ւদો୔ ୔ᄌಷèສྔჴࢰᇇၨᄌಷᅀᇇ ࠸शل୔ׂ֬๮ሮߴИ੸èᆊ۸ར଩ხࡀᄤ ࠪ ହඛઙࠊ৶݃ӍഐႼսᄆ௣١ԋ໊֬ൗႯڥè܄ ୌၷᇖ֬ሮӈᅀᆻࡀߊ ൗႯՕٺԐތᄤ໊দ֬೟୔ৡࡈ઻ྗຈ֬ᇽးᅀӐ׵৶ࢃদሸᄤ ቀࢀሄ૲࠙໨૓ࢃᄤ൨֙൏ࠖ࠙ࠥทะ೉ Ӹè ૲࠙è܄༅ᇖྖᅡा֬ሮӈᅀᆻܚ೟ϟາދ155ս༷

1555ս༷5ս༷ ๮ሮᆇܸ༩ࠪఙ၃࡚ܼ ୔ᄌྔࡍ௨ᆪ಑๮ሮᆇཿ߽಻ྤᄤޚ୔ׂ֬၉࠸ᅡ ࡈ઻ྗຈӸׯ჆܄155ս༷֬ሮӈّྔ ୔ࠍ϶ûቒ๰ل1);एϾ֬๮ሮᆇ๮࿑ࢉརᇖৼ࿊ׂ; ௣١ሮӈᅀᆻࡀߊࢃϣս༷ୄ՘ቃ঺३࡞ۅाè ༌ൄçࠕࣈࣣয়ࠪૉ฿฻ଇ֬඀ٺයüࢉè ᆊརႵ܋ԋࣱ֬ቆਮ૲࠙బၔ֥ᄤཊႼ੤ๆ๛ӡӍ३࡞ྜྷࢀ֬਍ ଃ Ӹ֬ᅡाႼধ჆=:)ؚᄔ ಻ॣ׮ਛ໨૓௃੤ྗ༖֬ሠ൏ྦçଃಙ؎ࠪຢᆣྦၢࠪ܄ඒࢀሄ༅èڿұ੓ۡ֬ਲ਼൹ ๮ሮᆇܸ༩֬୴৶è໨૓ࢃࡆ࿊ເࡈ઻ྗຈށე ໨૓ؚ਌ۺᆴٺ ᅀᇇϫᆴٺ྿֬ഌႯቀࢀሄ૲࠙՝ϫ ᆴ ѬԂቒۡ֬ఙ၃࡚ܼࠪ๰ଃ؎њሠèٺè=:)ᄔ྿֬ϫشၵࡕҼڸ਩൏྿ढ़ᆪ຿྽ࢡ֬ ᅀࡍၰ໌ሩս༷ࢃ็ࡍսᄆ ௣١ԋ֬ഌ֬ ఙ၃֬ധ߽ᄺರ ܛႯቀࢀሄ૲࠙è෢ሩഌႯቀࢀሄ૲࠙֬ᅀࡍ໨૓ࢃ୆ ເ໨૓֬֍໑ԂႼಭᅀᆻ֬๤൏໨૓၀ތར଩ხࡀࢃເࣱӈ၃൳್ւ ᄤ໨૓ทะ೉ۅႱߋሮӈᅀᆻࡀߊؾٺԐ ༅݃ӍሎєӵएϾࠊ׵֬ᇖྖၢܚࢃ໨૓֬ތສྔ ॐੵਛ೉দો୔!ສྔჴ֬ᅀӐèხࡀ֬ሮЮाᆭເ! ௣١ԋ֬੓֬܋Ӹხࡀ ߴওധ౼è໨૓ࢃм೽ׂϝᅦϾ܄ᆴèሮӈᅀᆻٺჴؾ๮ሮߴИ੸ხࡀ൥ϫ ৭ڥఊ༶֬ᇄᄂ܉৭য়ൠ߽ڥè ૮ቆࣈቆਮ૲࠙࢓ეݚࡌ܄ᄤ ୔ׂ֬၉࠸श ቍᆵൗႯњᇄਛ໨૓֬၉۸ᇞး֬ৡӸОèࢧᄱ൏໨૓ ௣١ԋቀࢀሄ૲࠙ሎєӵм೽ׂϝᅦ ੓֬܋༅ᇖྖ ࢃϾܚ༅ᇖྖϟາܚ೟೟ϟາ ௣١ԋ ֬ਲ਼൹૲࠙èເਛໂԂм೽ׂϝᅦჷႼ֬ቀࢀሄ૲࠙Ͼ ໨૓ୌ׮ਛ၉۸Ўচ՝ህᅔս༷బၔ֫Ԣ ੓ᄼш྽ЫҾԩè܋ ұ੓ບቀࢀሄ૲࠙֬ሮӈᅀᆻࡀߊèህᅔսׂ༷ࠪش֬ ༅ᇖܚ૲బၔ֫Ԣ֬३࡞ࢃЫሎၔ՝ؾເגਲ਼൹ٺҍ֬ ׋Ⴑ Օບ໨૓ᄤ֕ѥୋ݃Ӎࠪм೽ׂϝᅦ֬໳׫ഏࢀᄶਛ੤׀ئ۾ॽഏᅀࢀ֬೟ұ੓ۡ֬ࢀሄ༅Ծᄶ׀ਪࢫྖ ࣐၉ҋ׀एϾࠊ׵֬ቒࡋӍ܉ࢀӵ၉۸੤ ๆ๝ჺ݃ӍເՒആቍᆵ฻ۆұ੓బၔ֫Ԣ֬३࡞ࢃ૲èׂגᄇ֬ਲ਼൹ ๆ๝ჺ݃Ӎ ୄനؿ๧ႺৈӍࠪࠊ׵Ӎ෵èᆊ۸ར଩֬ხ չ֥໨૓֬ఙ၃ധ߽ᄺರ଩њè ສ ບشࡀሮЮᆭԢເ !ສྔჴѰხਟढ़ւদો୔ ֬๮ሮߴИ੸èᅀࢀࢀሄ༅֬ ჴࣱ֬ӈ၃൳್ࠪ!ྔ è܄୔ֿᅡाѰხࡀᄤ ୔ֿशხࡀᄤ܄േ

ହඛઙࠊڥ୔ᄌಷ֕ѥୋ݃Ӎçм೽ׂϝᅦç୔ᄌಷࠪओࢰᇇۻ ࡕèܠ৶݃Ӎç155ս༷ࠪെӳս༷֬

20 > inspire ར଩ၢছԐࡈ઻ྗຈ֬ሮӈ݆ܚᅡຳఴࣦ ࣐ྡྷक൳ၴᅀӐྦ֬൳ ଩ۡ۾ၨྔჴ֬ၨྔჴᇇҭҭંྦܼয়ࡀߊંྦܼয়ࡀߊ ଍࠮ᄤ ୔ֿఴչ֥ ᅡنࡽᅀ൛ቆࣈࠪቀ႖၃ њè໨૓ཊၟಃ֫཈ᇾ݆֬଍ѰႼ୆৶ᅡा๮ሮࠪڸ୔ᄌಷ໨૓ᆭࢰᇇ ӈ๮ሮྗຈၢ׀ᄔ྿٣۾ቒྔ֬ᆾ֤١ᆓєڰᆴ ར଩èᆦٺࠪϫᆴٺѠᅤϫٺቆࣈ/<7֬ቆ߃ش ᅡར଩ࢃ৭჆ᆊརࡀنᆴ࣐ྡྷٺӘݝၟհሮӈ֬ϫ҉ ٺࡍ/<7ϫڿèᄤ໨૓ᇶࡽሎས၉۸ၢࠕЮቆࣈ ಥࡈ઻ྗຈ֍໑ԂႼಭތ๤൏໨૓ࢃ ߊèᇖఀؾင໨૓၀ࢃทะ೉֬ܙи֬಍ྔቆࣈࢹٺиࠎࢧۡ֬/<7ϫ ᅀӐè֬ۡ۾༅݃Ӎ๾Ԣ཮൹׋87;༩ ՝ݡບሮӈ๮ሮᇖࠍၴࠪཡႼܚᇖ֬۹ࡌލᇶҋເ๮ሮቍ ࡁ੪ቆ߃֬཮൹၃ࠢè໨૓ၟᄤм೽ׂ׀Ⴜཹ۾๫ၢѓ ୔֬଩њ ֬ׯႯ੸è໨૓ ϝᅦ๾Ԣ൲မྦ֬87;༩๫Ѱಃ֫! è ࣉ୔໨૓ࢃᄤಙГཊႼ൳್দჾӼൺቒֵႜའ֬౭ঊ༶ش၀ढ़๠ݝ87;༩๫ࡁ੪/<7ቆࣈᇖ֬൳್ᅀ ሩᇞ჆ᆺྡྷ۹རୌၷᇖ֬ሮӈᅀᆻࡀߊѰࡆ࿊ເ໨૓֬ ༅݃ӍทะԾᄶࡕᆻ߽֬ࠖèՕບ໨૓ࢃ࣐၉ҋࡍܚ ۾Ⴏᆾ֤١ᆓࠪხෟϊ֬є۾ആആႯᆾ֤١ᆓࠪხෟϊ֬є ༅฿မè໨૓၀ܚ֬ށ۾܉ॡ฻ܫ༅ܚࠪເލӈࠕࣈ֬ᆾ ృቆ߃ቍ׀୔ᄌྔࡍ௨ࣈ಼ܼয়ऌྰׯਛ٣ ç࠙ࠥ࿠౷क൳ၴܙ৭Ⴏࡈ઻ྗຈ֬ሮЮࢹٺӈ๮ ࢃࡆ࿊Ԑ׀ӈ๮ሮྗຈ֬ఙ၃࡚ܼࠪເ٣׀١ᆓၢࡍృ٣֤ ༅ᇖྖ֬႖ᄕཹ੸èࡓന҉ܚར଩ࠪ฻ۡܚս֬ਹࠊྦְèᆾ֤١ᆓ֬ᇽ ᅀӐྦ֬൳۾ሮྗຈ֬๮ሮࠊ׵ሆ್ ୔ხҰ֬ხࡵ֬౭ঊ໨૓Ⴜྗྖչ໊֥ތӈ๮ሮྗຈ൳ Ԣཊರ׀ଃಙ֬๏৯݆ࠪ׮ၢգ࣐٣܉฻۾းє ࣈèنٺો֍໑֬ٺ ᇞး۾෵Ⴜಊèٺບݚӈ၃ሮӈࠪཡႼӈ၃ሮӈ֬ҍܚ ӈ׀຿٣ᆴٺ฻ۡᇇϫᆴٺདྷᇌ՝ϫۍ൥۞֬ Ⴏ௦࠰ѰؚՕቛ ଅྍྗ֬ܙࠖܠ๮ሮྗຈ྽ಃ֫၉ࡌᇽး௦ ୔༇Әݝ୔֬4]Q+PWVO+PMM༼ഺ჆ڢൠ߽׳Ԣ௃੤è ເ යቛԢ֬Жݓ܋ྍ෷ເےൠᆶ༇è໨૓Ⴕᇚ׳ᄌྈ༶ ൠ7TQ^QMZ4QU༼ഺ֬ࡍ್པྗ෷׳ӈ๮ሮྗຈࣰ֬ᆡႱ൤Ѱգ࣐ྔࡍ ܑཋè໨૓၀ߒ႙ྔ׀ເਛ฻ۡྔࡍ௨٣ ୔ᄌ ֬ᆰൔࣣࠪမࢃಥ໨૓՝ᇖࠍၴèᄤڰӈ๮ሮྗຈ֬ࣈ಼ᇖྖᆦ׀ᅡӵ٣ن௨ ӈ๮ሮྗຈ׀୔ხෟϊᇖ࿍Ҋྔࡍ௨٣Ҋ֬܋ಷ ܫൠ߽ç֍໑ԂႼಭç၃༇ࠋϻç׳ྍ໨૓֬ے՝ບݚಃ֫֬৭༖ࠪሸບݚྗຈಃܸ֫჆ບݚӈ၃෵Ⴜ ໨૓၀ ॡࠪᆶ჻ؚ໨૓֬၃ࠢ෵ቛԢܑ֬ܫ༅ܚࣈ၀ࢃཡႼ૮ඬႱ߹èՕບྔࡍ ॡçቆ߃çنٺಊ֬൳್ࠎ൳ၴ֬ ӈ๮ሮྗຈढ़ಃߴႀቍᆵࠪന৲۹ұ՘ԂႼݡ ཋèᄤ۹ܸ৺١֬Ԃ࿊ᆭԂ༶ࡈ઻ྗຈࢃ๠ݝܼ࠙ࠥয়׀௨֬٣ ය;8+ؾᅸᇈ֬ाᆭ֬཯ ሮӈࡆ࿊Ծᄶࡕᆻࠪເ֍໑ԂႼಭւদቒս֬ߴИ๤൏܋ບ٫ህᅔӈ၃֬าѠ଩֬ ༅฿မèܚቒႱᇐ֬܉ॡ฻ܫ༅ᇖྖ֬ܚය ࣗ৶ເ໨૓֬܋ݡບ٫ህᅔӈ၃ࣣࠪ႖าѠ଩֬ܚඬ/;<è൳ٵ ඬ၀ढ़ಃߴèٵؾᅸᇈ֬཯

ܙࣰᆡྦӵЮçГ൶֬ᅖ༇ࢹ֬ܙࡈ઻ྗຈ௤ሩሮЮࢹ ᅖи੸ࢃ୆ڼֵ ᆴٺ୔ᄌಷ֬ϫࠪࢰᇇ ᅖདྷᇌᇖࠍၴè๠ݝࣀሀ໨૓Ӳເ੉õQö֬ڼ՝฻ۡ֬ ࡕᆻԾᄶࡠᅀӐҭં໨૓ࢃࡆ࿊ᄤྔࡍ௨֬ܬ੉རໞ

ᇽ༣ᇽ༣ ቀቀґґ

ս༷֍໑۝ޱ֬ܚᄌ൳ ދᄌ୔༅ᇖྖçܚ೟ϟາ֬ܚᄌ൳୔Ўচ჆҉ ୔ᄌಷ ჭ঺ვৈᇖྖè֬ܚ୔ᄌ൳ࠪ ୔֬ხҰࠪࡓനè୔ᄌ ಷ๠ۨ෵ਠ֬ओࡈ઻ྗຈۻ

inspire > 21 IN Conversation_ﬁ nancial highlights

1 JAN 2005 TO 30 OCT 2005 31 OCT 2005 TO 31 DEC 2005 ACTUAL FORECAST1 VARIANCE ACTUAL FORECAST2 VARIANCE

Gross revenue S$191.3 m S$173.9m + 10.0% S$51.8m S$49.3 m + 5.0% Net property income S$121.7m S$113.6m + 7.1% S$32.4m S$32.3 m + 0.2% Distributable income S$101.0 m S$93.7m +7.9% S$25.8m S$25.2 m + 2.9% Distribution per unit (DPU) 8.36¢ 7.76¢ + 7.9% 1.87 ¢ 1.82 ¢ + 2.9% Annualised DPU 10.07 ¢ 9.34¢ + 7.9% 11.02 ¢ 10.71 ¢ + 2.9% Annualised distribution yield 4.42%3 4.10%3 + 7.9% 4.92%4 4.78%4 + 2.9%

FROM 31 DECEMBER 2004 TO 31 DECEMBER 2005 Total Return5 33.1% Distribution Yield 6 5.8% Capital Appreciation 7 27.3%

2.7 CMT CLOSING UNIT PRICE (31 Dec 2004 - 30 Dec 2005) 2.6

2.5 30 December 2005’s closing unit price S$2.24 2.4

2.3

2.2

2.1

2.0

1.9

1.8 31 December 2004’s closing unit price S$1.76 1.7 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05

1. Based on the forecast, together with the accompanying assumptions, shown in the CMT Circular dated 20 July 2004 for the fi nancial year ended 31 December 2005, pro-rated for the period 1 January to 30 October 2005. 2. Based on the forecast, together with the accompanying assumptions, shown in the CMT Circular dated 18 October 2005 (adjusted to include actual for 31 October 2005). 3. Based on the unit closing price unit of S$2.28 as at 28 October 2005, as 30 October 2005 is a non trading day. 4. Based on the unit closing price unit of S$2.24 as at 30 December 2005, as 31 December 2005 is a non trading day. 5. Based on total DPU of 10.23 cents for the fi nancial year ended 31 December 2005, the closing unit price of S$1.76 on 31 December 2004 and the closing unit price of S$2.24 on 30 December 2005. 6. Based on total actual distribution per unit of 10.23 cents for the fi nancial year ended 31 December 2005, and the closing price of SS1.76 on 31 December 2004. 7. Based on the closing unit price of S$2.24 on 30 December 2005 and the closing unit price of S$1.76 on 31 December 2004.

22 > inspire 2005 2004 2003 2002 TRUST & ITS TRUST & ITS AS AT 31 DECEMBER ASSOCIATE 1 ASSOCIATE 1 TRUST TRUST

Portfolio property valuation (million) S$3,365.0 S$2,235.0 S$1,240.0 S$935.0

CMT portfolio committed occupancy rate 2 99.7% 99.8% 99.1% 99.8%

BALANCE SHEET AS AT 31 DECEMBER Total assets (million) S$3,483.6 S$2,361.7 S$1,351.5 S$990.2 Unitholders’ funds (million) S$2,283.9 S$1,622.5 S$972.4 S$761.2 Total borrowings3 (million) S$1,089.2 S$660.0 S$325.0 S$200.0 Market capitalisation 4 (million) S$3,090.5 S$2,117.6 S$1,295.7 S$745.9 Net Asset Value per Unit S$1.66 S$1.35 S$1.07 S$1.03

FINANCIAL RATIOS AS AT 31 DECEMBER Earnings per Unit 9.48¢ 9.85¢ 7.68¢ 6.21¢ Distribution per Unit 10.23¢ 9.48¢ 8.03¢ 6.16¢ Net Tangible Assets per Unit S$1.66 S$1.35 S$1.07 S$1.03 Borrowings to Total Assets 5 31.6% 28.5% 24.7% 20.7% Interest cover (times) 6.0 7.2 8.0 8.5 Management Expense Ratio 6 0.9% 1.1% 1.0% 0.8%

1. With the adoption of FRS 28, the results of Trust and its associate are presented in Years 2004 and 2005. There are no comparative ﬁ gures for Years 2002 and 2003 as the investment in CapitaRetail Singapore Limited (“CRS”) was effective in 2004. 2. Excludes ofﬁ ce and warehouse in IMM Building. 3. Total borrowings is S$1,093.0 million as at 31 December 2005. Fees and costs of S$3.8 million incurred in the S$433.0 million debt raising exercise is amortised over the tenor of the secured loan of seven years. 4. Based on the unit closing price of S$2.24 as at 30 December 2005 (31 December 2004: S$1.76/31 December 2003: S$1.43/31December 2002:S$1.01) 5. Total assets excluding distributable income. 6. Refers to the expenses of the Trust excluding property expenses and interest expense expressed as a percentage of weighted average net assets.

inspire > 23 24 > inspire IN Conversation_milestones

MILESTONES

january march • CMT was included as one of the 50 component • CapitaMall Trust (CMT) commenced quarterly stocks of the Straits Times Index (STI), the primary distributions to Unitholders. Singapore equity market barometer.

• CMT’s distributable income exceeded • CapitaMall Trust Management Limited (the distribution forecast for the period from 2 Manager) of CMT handed over 55,000 sq ft of

August 2004 to 31 December 2004 by 6.4 rent-free lettable space at Junction 8 ofﬁ ce tower percent. to the National Council of Social Service for their Voluntary Welfare Organisations.

inspire > 25 IN Conversation_milestones

april

• CMT’s distributable income exceeded distribution forecast for the period from 1 January 2005 to 31 March 2005 by 7.3 percent.

• CMT entered into a Sale and Purchase agreement with Hougang Town Central Development Pte Ltd and S28 Holdings Pte Ltd to acquire an aggregate of 92.4 percent of the total share values in Hougang Plaza for approximately S$39.2 million. June • At Junction 8, construction of an open May landscaped plaza, which includes a children’s playground, stage facilities and promotional • CMT entered into a Sale and Purchase space, was completed. agreement with Ang Oon Hue Private Limited to acquire Sembawang • CMT completed the acquisition of Shopping Centre for approximately Sembawang Shopping Centre. S$78.0 million. • CMT completed the acquisition of an • Funan The IT Mall was rebranded as aggregate of 92.4 percent of the total share Funan DigitaLife Mall to better reﬂ ect values in Hougang Plaza. the tenant mix and the positioning of the mall. The rebranding programme • CMT entered into a Sale and Purchase was also tied in with the launch of agreement with Jack’s Place Holdings Pte Inbox5, a thematic zone on Level 5 Ltd to acquire approximately 4.3 percent of with a focus on digital and electronic the total share values in Hougang Plaza for devices. S$4.6 million.

• At Tampines Mall, a designated Beauty Hub area was created by converting common corridor space into leasable space.

• At IMM Building, four glass kiosks were erected on Level 1 to maximise net lettable area.

26 > inspire july november • CMT’s distributable income exceeded • CMT completed the transaction for the distribution forecast for the period from 1 surrender of 74,299 sq ft of net lettable April 2005 to 30 June 2005 by 7.8 percent. area at Bugis Junction.

• CMT entered into a conditional Sale and Purchase agreement with BCH Retail Investment Pte Ltd, an associate of CapitaLand Limited, in respect of the acquisition of Bugis Junction at a purchase october price of S$580.8 million. • At an Extraordinary General Meeting on 6 October 2005, Unitholders passed, inter • CMT entered into a Sale and Purchase alia, an extraordinary resolution to acquire agreement with Shaw Jurong Development Bugis Junction. Pte Ltd to acquire Jurong Entertainment Centre for approximately S$68.0 million. • CMT entered into an agreement with Seiyu (Singapore) Private Limited (now known as BHG (Singapore) Pte. Ltd.) and The Seiyu, August Ltd. for the surrender of 74,299 sq ft of net lettable area at Bugis Junction. • CMT completed the acquisition of approximately 4.3 percent of the total • CMT was granted Outline Permission by the share values in Hougang Plaza. Urban Redevelopment Authority to convert 45,267 sq ft of residential gross ﬂ oor area (GFA) to retail GFA at Sembawang Shopping Centre.

• CMT’s distributable income exceeded distribution forecast for the period from 1 July 2005 to 30 September 2005 by 8.4 percent.

• CMT completed the acquisitions of Bugis Junction and Jurong Entertainment Centre.

• At Tampines Mall, the reconﬁ guration of the food kiosk area on Basement 1 was completed, increasing the total number of september food kiosks from 13 to 18. • CMT won the ‘Most Transparent Company’ Award, REITs category, Securities Investors Association (Singapore) (SIAS) Investors’ december Choice Award for the second year running.

• At Funan DigitaLife Mall, the installation of • At Jurong Entertainment Centre, the new escalators from Basement 3 to Level amalgamation of two retail units to 1 was completed, improving access for create a food court was completed. shoppers from the car park.

inspire > 27 INsights into Growth

We have a track record of creating value and growth for our Unitholders.

28 > inspire inspire > 29 INsights into Growth

TRACK RECORD OF VALUE CREATION

(1) CONSISTENTLY OUTPERFORMED DISTRIBUTION PER UNIT FORECAST • We have consistently outperformed our Distribution per Unit forecasts by between 3.0 percent to 8.0 percent.

ORIGINAL REVISED ACTUAL VARIANCE PERIOD FORECAST FORECAST DPU FROM (ANNUALISED) (ANNUALISED) (ANNUALISED) FORECAST 2002 6.78 ¢ 1 NA 7.34 ¢ 8% 1 January 2003 to 25 June 2003 6.96 ¢ 2 NA 7.51 ¢ 8% 26 June 2003 to 31 December 2003 6.96 ¢ 2 8.04 ¢ 5 8.53 ¢ 6% 1 January 2004 to 1 August 2004 8.14 ¢ 3 8.59 ¢ 6 9.25 ¢ 8% 2 August 2004 to 31 December 2004 8.14 ¢ 3 9.21 ¢ 7 9.80 ¢ 6% 1 January 2005 to 31 March 2005 9.34 ¢ 4 NA 10.02 ¢ 7% 1 April 2005 to 30 June 2005 9.34 ¢ 4 NA 10.07 ¢ 8% 1 July 2005 to 30 October 2005 9.34 ¢ 4 NA 10.12 ¢ 8% 31 October 2005 to 31 December 2005 9.34 ¢ 4 10.71¢ 8 11.02 ¢ 3%9

1. Annualised forecast based on the forecast shown in the CMT Offering Circular dated 28 June 2002. 2. Based on the forecast shown in the CMT Offering Circular dated 28 June 2002. 3. Based on the forecast shown in the CMT Circular dated 11 June 2003. 4. Based on the forecast shown in the CMT Circular dated 20 July 2004. 5. Based on the forecast shown in the CMT Circular dated 11 June 2003, for all the properties, excluding Plaza Singapura, for the period June to December 2003, pro-rated for the period from 26 June to 31 December 2003. 6. Based on the forecast shown in the CMT Circular dated 11 June 2003 (and subsequently updated in the CMT Offer Information Statement dated 9 December 2003) for all the properties, excluding Plaza Singapura, for the ﬁ nancial year ended 31 December 2004, pro-rated for the period from 1 January to 1 August 2004. 7. Based on the forecast shown in the CMT Circular dated 20 July 2004, for all the properties including Plaza Singapura, for the period 1 August to 31 December 2004, pro-rated for the period from 2 August to 31 December 2004. 8. Based on the forecast shown in the CMT Circular dated 18 October 2005 (adjusted to include actual distribution for 31 October 2005). 9. Variance against the revised forecast of 10.71 cents as shown in the CMT Circular dated 18 October 2005 (adjusted to include actual distribution for 31 October 2005).

30 > inspire (2) DISTRIBUTION PER UNIT GROWTH TREND

• Actual Distribution per Unit has grown from 7.341 cents in 2002 to 10.232 cents in 2005.

+ 7.9% 11.04 + 7.9% 10.23 + 18.1% 9.48 + 9.4% 8.03 7.34 FY2006 FY2005 Projected FY2004 Actual DPU(3) FY2003 Actual DPU FY2002 Actual DPU Actual DPU DPU(1)

Notes :

2002 2003 2004 2005 2006

1 Based on annualised distribution per unit. The actual distribution per unit for the period from 17 July 2002 to 31 December 2002 was 3.38 cents. 2 Based on actual distribution per unit from 1 January 2005 to 31 December 2005. 3 Based on the forecast shown in the CMT Circular dated 18 October 2005.

(3) CORE DRIVERS OF DISTRIBUTION PER UNIT GROWTH • We have successfully driven Distribution per Unit growth from 6.78 1 cents to 11.022 cents, with acquisitions (49 .0 percent), asset enhancements/reconﬁ gurations (20.5 percent) and active leasing (19.2 percent) forming the three major components of growth.

11.02 ¢2 Acquisitions3 CRS Investment 49% 3% Asset Enhancements/ Reconﬁ gurations 21%

Upfront Payment of 1 IMM Land Premium 6.78 ¢ 8% Active Leasing 19%

1 Annualised forecast based on the forecast, together with the accompanying assumptions, shown in the CMT Offering Circular dated 28 June 2002. 2 Annualised distribution per unit for the period 31 October 2005 to 31 December 2005. 3 Based on the distribution per unit increase forecasts shown in the CMT Circular dated 11 June 2003, CMT Circular dated 20 July 2004 and CMT Circular dated 18 October 2005, which were eventually achieved.

inspire > 31 INsights into Growth

(4) STRONG RENTAL RENEWAL RATES • We have been able to achieve healthy renewal rates versus forecast and preceding rental rates through our proactive asset planning and leasing strategy.

FROM 1 JANUARY TO 31 DECEMBER 2005 (EXCLUDING NEWLY CREATED UNITS)

NO. OF RENEWALS/ NET LETTABLE AREA INCREASE/(DECREASE) IN CURRENT RENTAL RATES VS.

NEW LEASES AREA (SQ FT) % TOTAL NLA1 FORECAST RENTAL RATES PRECEDING RENTAL RATES

CMT Portfolio for 2005 2 189 401,263 23.2% 6.8%3 12.6% CMT Portfolio for 2004 248 244,408 14.2% 4.0%4 7.3% CMT Portfolio for 2003 325 350,743 15.6% 6.2%5 10.6%

1. As at 31 December 2003, 31 December 2004 and 31 December 2005 respectively. 2. Excluding Hougang Plaza Units, Sembawang Shopping Centre, Bugis Junction and Jurong Entertainment which were acquired in 2005. Only renewal of retail units not budgeted to be affected by asset enhancement works were taken in to account, 149 units originally budgeted to be affected by asset enhancement works at level 2 and level 3 of IMM building were excluded from the the analysis. 3. Forecast rental rates for the period 1 January 2005 to 30 October 2005 is the basis for forecast shown in the CMT Circular dated 20 July 2004 and the forecast rental rates for the period 31 October 2005 to 31 December 2005 is the basis for forecast shown in the CMT Circular dated 18 October 2005. 4. Forecast rental rates for the period 1 January 2004 to 1 August 2004 is the basis for forecast shown in the CMT Circular dated 11 June 2003 and the forecast rental rates for the period 2 August 2004 to 31 December 2004 is the basis for forecast shown in the CMT Circular dated 20 July 2004. 5. Forecast rental rates for the period 1 January 2003 to 25 June 2003 is the basis for forecast shown in the CMT Offering Circular dated 28 June 2002 and the forecast rental rates for the period 26 June 2003 to 31 December 2003 is the basis for forecast shown in the CMT Circular dated 11 June 2003.

(5) HIGH OCCUPANCY RATES • We have achieved consistently high occupancy rates of close to 100.0 percent at all malls within the portfolio.

AS AT AS AT AS AT AS AT AS AT AS AT 30 SEP 04 31 DEC 04 31 MAR 05 30 JUN 05 30 SEPT 05 31 DEC 05

Tampines Mall 99.9% 100.0% 100.0% 100.0% 100.0% 100.0% Junction 8 99.8% 99.8% 100.0% 100.0% 100.0% 100.0% Funan DigitaLife Mall 99.8% 100.0% 98.9% 97.0%2 99.2% 99.4% IMM Building1 99.3% 99.4% 99.8% 99.8% 99.8% 99.0% Plaza Singapura 98.0% 100.0% 100.0% 99.9% 100.0% 100.0% Bugis Junction NA NA NA NA NA 100.0% Others3 NA NA NA 100.0% 100.0% 99.8% CMT Portfolio 99.2% 99.8% 99.6% 99.5% 99.8% 99.7%

1. Information is based on retail space only. 2. Lower occupancy rate due to reconﬁ guration of units on Level 2. 3. Comprising Hougang Plaza Units, Sembawang Shopping Centre and Jurong Entertainment Centre.

32 > inspire (6) INCREASING SHOPPERS’ TRAFFIC

• Through proactive management of our malls, we have successfully increased shoppers’ trafﬁ c by 20.7 1 percent since 2003.

INCREASED SHOPPER’S TRAFFIC BY 20.7% SINCE 2003

2500 Junction 8

2000 Tampines Mall

1500 Plaza Singapura IMM building 1000

Funan DigitaLife Mall

Number of shoppers 500 Jul 04 Jul 05 Sep 04 Mar 05 Sep 05 Jul 02 Nov 04 May 05 Jul 03 Nov 05 Jan 05 Jan 03 Sep 03 Sep 02 Jan 04 Nov 03 Mar 04 Nov 02 Mar 03 May 04 May 03 Shopper Traffic (By Month)

TOTAL NO. OF TOTAL NO. OF TOTAL NO. OF SHOPPERS IN 2003 SHOPPERS IN 2004 SHOPPERS IN 2005 (IN ‘000s) (IN ‘000s) (IN ‘000s)

Tampines Mall 18,927 18,7802 20,488 Junction 8 19,244 15,7862 21,751 Funan DigitaLife Mall 5,642 8,005 9,625 IMM Building 14,088 15,374 15,844 Plaza Singapura 12,270 16,776 16,998 TOTAL 70,171 74,721 84,706

1 Based on a total traffi c of 70,171,000 in 2003 and a total traffi c of 84,706,000 in 2005 at Tampines Mall, Junction 8, Funan DigitaLife Mall, IMM Building and Plaza Singapura. 2 Lower shoppers’ traffi c due to asset enhancement works.

inspire > 33 IN-Touch

“This is our favourite place to meet. We come here for the movies, shopping as well as the great snacks at the basement level. “

Brenda Lin, Ng Xuemin, Ho Wei Heng Bugis Junction

Our shoppers speak

“We live in Thomson but come to Plaza Singapura because it is a great one-stop shopping mall. We like to come here for the fresh food supermarket, shopping and the basement level - our favourite tea destination with its wonderful restaurants.”

Tari, Gladys Ding, Priscilla Ding, James Ding Plaza Singapura

34 > inspire “Tampines Mall is a great one-stop mall where “We live very close to Junction 8 and love there’s something for everyone. The mall has shopping here. The mall has been revamped been transformed radically. I’ve noticed the many tremendously. I particularly like the improved new and exciting snack food and restaurants in retail mix, new restaurants, push carts and the basement which are a great improvement.” improved areas. I think CapitaMall Trust has done a great job.”

Alﬁ e Ng Tampines Mall Christine Chia with her two daughters Junction 8

“We are both expatriates working in IBM “My mum loves shopping at IMM, and we often Singapore. When we ﬁ rst arrived here, we come here for her grocery needs. We’ve noticed quickly learnt that Funan is the best mall for all vast improvements to the shopping mall in the our IT needs. Besides work-related needs, our last few years and there appears to be constant families back home hound us to buy them the upgrades which have greatly enhanced the latest Nintendo and computer games, which is shopping experience.” why we need to keep coming back to the mall.”

Sunita Thaniyan, Indian & Hannah Parker, British Caroline Cheng Funan DigitaLife Mall IMM Building

inspire > 35 IN-Touch

Our tenants speak

“City Chain and Optical 88 are proud to partner CMT. We have an enjoyable working relationship with the CMT management team who is dynamic, professional, understanding and knows the market trend very well. Because the team updates the tenant mix, upgrades their malls, and introduces lots of promotional activities, CMT’s shopping malls are always well-managed, very crowded and appealing to the right target customers. We are conﬁ dent that we would deﬁ nitely move forward together with their projects.”

Mr Kenny Chong , Regional Operations Controller City Chain Stores (S) Pte Ltd Optical 88 (S) Pte Ltd

“We have worked with the management team on many occasions and found them to be professional and creative in their approach. Their willingness to embrace new ideas and concepts is a strong boost to entrepreneurship and business ventures. Indeed, CapitaLand’s expertise in professional retail mall management and its strong emphasis on tenant relationships have been integral to the success of our business.”

Dr George Quek Group Managing Director BreadTalk Group Limited

“I think we have a landlord who is sensitive to the needs of the tenant, makes a deliberate attempt to engage the tenant, understands the speciﬁ c nature of the different retailers, and appreciates that both parties have a common objective in operating a proﬁ table business. This makes for a good and wonderful working relationship.”

Mr Jeffrey Sim, Director Finance, Human Resource & Administration Best Denki (Singapore) Pte Ltd

36 > inspire “The asset enhancements and aggressive marketing campaigns embarked on at the various malls have given shoppers a refreshing and vibrant shopping experience. As a retailer, we have benefi ted from the higher traffi c fl ow and the very conducive retail environment. All credit to the management team!”

Mr Charlie Teo, Chief Operating Ofﬁ cer OSIM International Ltd

“CapitaLand has played an important role in the growth of our business over the past two years. Because the management understands our business and is disciplined in executing asset enhancements, marketing programs and tenancy remixing, we are conﬁ dent of their ability to drive shoppers’ trafﬁ c and are now in most of their malls. We look forward to strengthen our partnership with CapitaLand in the many more years ahead.”

Mr Koh Wee Seng, Chief Executive Ofﬁ cer Aspial Corporation Limited (Aspial, Lee Hwa Jewellery, Goldheart Jewelry and Citigems)

“We are impressed by the retail management skillset of the management. The proactive management of the tenant mix at the malls, various asset enhancement works undertaken, coupled with the strong emphasis in marketing activities, have resulted in shoppers’ trafﬁ c increase. We are most happy with their focus on forging close relations with tenants so as to gain a better understanding of our business. We look forward to working in tandem with the team to grow our business in Asia.”

Mr Mark R. Wesley senior vice president, Real Estate and Store Development Starbucks Coffee International

inspire > 37 38 > inspire INspiring leadership We are organised for leadership: Pro-active leadership. We have an experienced and well-qualiﬁ ed Board of Directors as well as creative and professional management teams who drive the success of both CapitaMall Trust (CMT) and the individual malls. And, we have an effective corporate governance culture to ensure that the assets and liabilities of CMT are managed for the beneﬁ t of all stakeholders.

inspire > 39 INspiring leaders _corporate governance

CAPITAMALL TRUST STRUCTURE

UNITHOLDERS

INVESTMENT IN DISTRIBUTIONS CAPITAMALL TRUST

ASSET MANAGEMENT REPRESENTS INTERESTS SERVICES OF UNITHOLDERS MANAGER TRUSTEE

CAPITAMALL TRUST HSBC INSTITUTIONAL TRUST MANAGEMENT LIMITED SERVICES SINGAPORE LIMITED, THE TRUSTEE OF CAPITAMALL TRUST ASSET MANAGEMENT FEES TRUSTEE’S FEES

OWNERSHIP NET PROPERTY OF ASSETS INCOME

PROPERTY MANAGEMENT CAPITAMALL TRUST SERVICES PORTFOLIO Tampines Mall PROPERTY MANAGER Bugis Junction Junction 8 Jurong Entertainment Centre CAPITALAND RETAIL Funan DigitaLife Mall MANAGEMENT PTE LTD Hougang Plaza Units IMM Building PROPERTY MANAGEMENT Sembawang Shopping Centre Plaza Singapura FEES

40 > inspire Good corporate governance has always been the priority of CapitaMall Trust Management Limited (the Manager), the Manager of CapitaMall Trust (CMT). The Manager recognises that an effective corporate governance culture is critical to the performance of the Manager and, consequently, the success of CMT. As such, corporate governance will remain at the top of the Manager’s agenda.

Pursuant to this agenda, the Manager has adopted a comprehensive • Preparing property plans on an annual basis for review by corporate governance framework that meets best practice principles. the Directors of the Manager which may contain proposals In particular, the Manager has an obligation to act honestly, with and forecasts on net income, capital expenditure, sales and due care and diligence, and in the best interests of Unitholders. This valuations, explanation of major variances to previous forecasts, obligation ties in with the Manager’s prime responsibility in managing written commentary on key issues and underlying assumptions the assets and liabilities of CMT for the beneﬁ t of Unitholders, on rental rates, inﬂ ation, moving annual turnover, occupancy and the Manager will endeavour to continue enhancing returns to costs and any other relevant assumptions. The purpose of these Unitholders. plans is to explain the performance of CMT’s assets.

THE MANAGER OF CMT • Ensuring compliance with the applicable provisions of the The Manager has general powers of management over the assets of Companies Act and the Securities and Futures Act of Singapore, CMT. as well as other relevant legislation, the Listing Manual (the Listing Manual) of Singapore Exchange Securities Trading Limited The Manager’s main responsibility is to manage the assets and (SGX-ST), the Code on Collective Investment Schemes (the CIS liabilities of CMT for the beneﬁ t of Unitholders. The Manager will Code) issued by the Monetary Authority of Singapore (MAS), the manage the assets of CMT with a focus on generating rental income Trust Deed, the tax ruling issued by the Inland Revenue Authority and, if appropriate, increasing CMT’s assets over time so as to of Singapore on the taxation of CMT and its Unitholders and all enhance the returns from the investments of CMT and ultimately the relevant contracts. distributions and total return to Unitholders. • Attending to all regular communications with Unitholders. The primary role of the Manager is to set the strategic direction of CMT and make recommendations to HSBC Institutional Trust Services • Supervising CapitaLand Retail Management Pte Ltd (the Property (Singapore) Limited (the Trustee) as trustee of CMT on the acquisition, Manager), which performs the day-to-day property management divestment or enhancement of the assets of CMT in accordance with functions (including leasing, accounting, marketing, promotion, its stated investment strategy. The research, evaluation and analysis co-ordination, project management and property management) required for this purpose is co-ordinated and carried out by the at the CMT malls namely, Tampines Mall, Junction 8, Funan Manager. The Manager is also responsible for the risk management DigitaLife Mall, IMM Building, Plaza Singapura, Bugis of CMT. Junction, Jurong Entertainment Centre, Hougang Plaza Units and Sembawang Shopping Centre pursuant to the property Other functions and responsibilities of the Manager include: management agreements.

• Using its best endeavours to carry on and conduct its business As CMT is externally managed by the Manager, it has no personnel. in a proper and efﬁ cient manner and to conduct all transactions The Manager appoints experienced and well-qualiﬁ ed management with, or on behalf of, CMT at arm’s length. to handle its day-to-day operations. All Directors and employees of the Manager are remunerated by the Manager, and not by CMT.

inspire > 41 INspiring leaders _corporate governance

CapitaMall Trust Management Limited is appointed as manager BOARD OF DIRECTORS OF THE MANAGER of CMT in accordance with the terms of the Trust Deed dated 29 The Board of Directors of the Manager (the Board) is responsible October 2001 as amended by the First Supplemental Deed dated 26 for the overall management and the corporate governance of the December 2001, the Second Supplemental Deed dated 28 June 2002, Manager and CMT, including establishing goals for management and the Amending and Restating Deed dated 29 April 2003, the Fourth monitoring the achievement of these goals. Supplemental Deed dated 18 August 2003, the Second Amending and Restating Deed dated 9 July 2004, the Sixth Supplemental All Board members participate in matters relating to corporate Deed dated 18 March 2005, the Seventh Supplemental Deed dated governance, business operations and risks, fi nancial performance and 21 July 2005 and the Eighth Supplemental Deed dated 13 October the nomination and review of Directors. The Board has established a 2005 (the Trust Deed). The Trust Deed outlines certain circumstances framework for the management of the Manager and CMT, including a under which the Manager can be retired in favour of a corporation system of internal controls and a business risk management process. approved by the Trustee or be removed by notice given in writing from the Trustee upon the occurrence of certain events, including by The Board meets regularly to discuss and review the Manager’s key a special extraordinary resolution passed at a meeting of Unitholders activities, including its business strategies and policies for CMT. duly convened and held in accordance with the provisions of the Trust Board meetings are scheduled in advance, and are held at least once Deed by a vote representing not less than 75 percent of all Units in every quarter, to deliberate on the strategic policies of CMT, including issue entitled to vote on the matter. any signifi cant acquisitions and disposals, the annual budget, review the performance of the business, review the fi nancial performance Under the Guidelines for Property Funds issued by MAS, an appendix to of the Manager and CMT and approve the release of the quarterly, the Code on Collective Investment Schemes, the Trust Deed is required half-yearly and full-year results. The Board also reviews the risks to to be amended by 20 April 2006 to provide for the following: the assets of CMT and acts upon any comments from the auditors of CMT. Additional Board meetings are held, where necessary, to a) The Manager may be removed by way of a resolution passed by address signifi cant transactions or issues. a simple majority of participants present and voting at a general meeting, with no participant being disenfranchised; and The Board has adopted a set of internal controls which sets out approval limits for capital expenditure, investments and divestments, b) A general meeting may be convened at the request in writing bank borrowings and cheque signatories’ arrangements at Board of not less than 50 participants or participants representing not level, amongst others. Appropriate delegations of authority and less than 10 percent of the issued Units of the property fund. approval sub-limits are also provided at management level to facilitate operational effi ciency.

42 > inspire Changes to regulations, policies and accounting standards are CHAIRMAN AND CHIEF EXECUTIVE OFFICER monitored closely. To keep pace with regulatory changes, where The positions of Chairman and Chief Executive Offi cer are held by two these changes have an important and signifi cant bearing on CMT and people in order to maintain an effective oversight and segregation of its disclosure obligations, the Directors are briefed by management duties. during Board meetings, at specially convened sessions or via circulation of Board papers. Management also provides the Board The Chairman ensures that the members of the Board work together with complete and adequate information in a timely manner through with management with integrity, competency and moral authority, regular updates on fi nancial results, market trends and business and engages management in constructive debate on strategy, developments. business operations and enterprise risks. The Chief Executive Offi cer has full executive responsibilities over the business directions and BOARD COMPOSITION operational decisions of managing CMT. Presently, the Board consists of nine members of which three are Independent Non-Executive Directors. The Chairman of the Board is The majority of the Board members are non-executive with one- Mr Hsuan Owyang. The sole Executive Director is Mr Pua Seck Guan, third of the Board being independent of management. This enables the Chief Executive Offi cer. management to benefi t from their external and objective perspective of issues that are brought before the Board. It also enables the Board The composition of the Board is determined using the following to interact and work with management through a healthy exchange principles: of ideas and views to help shape the strategic process. This, together with a clear separation of the roles of the Chairman and the Chief • The Chairman of the Board should be an Independent Non- Executive Offi cer, provides a healthy professional relationship Executive Director; between the Board and management with clarity of roles and robust • The Board should comprise Directors with a broad range of deliberation on the business activities of CMT. commercial experience, including expertise in funds management, the property industry and in the banking and legal fi elds; and Newly appointed Directors are given briefi ngs by management on the • The Board should comprise at least three Independent Directors. business activities of CMT and its strategic directions.

The composition of the Board is reviewed regularly to ensure that the The Board will take independent professional advice when it deems it Board has the appropriate size and mix of expertise and experience. necessary for the proper and efﬁ cient discharge of its responsibilities. The Company Secretary will give the Board the necessary assistance Four Board meetings were held during the year. The attendance at the and is also responsible for ensuring that Board procedures are Board meetings held in 2005 is set out on page 51. followed and that the applicable laws and regulations are complied with. In addition, the Company Secretary will also attend all Board meetings.

inspire > 43 INspiring leaders _corporate governance

BOARD REMUNERATION EXECUTIVE COMMITTEE The remuneration of Directors is paid by the Manager, and not by The Executive Committee operates under delegated authority from CMT. the Board. The members of the Executive Committee are Mr Liew Mun Leong, Mr Olivier Lim Tse Ghow (with effect from 1/7/2005), The remuneration of Directors for the year ended 31 December 2005 Mr Lui Chong Chee (up till 1/7/2005), Mr Kee Teck Koon and Mr Pua is shown in the table below: Seck Guan. This committee oversees the day-to-day activities of the Manager on behalf of the Board including to: BOARD MEMBERS DIRECTOR’S FEE FOR FY04* DIRECTOR’S FEE FOR FY05* (1) Approve or make recommendations to the Board on new investments, acquisitions, fi nancing offers and banking Hsuan Owyang S$73,000 S$76,000 facilities; Liew Mun Leong - - (2) Approve or make recommendations to the Board on divestments Pua Seck Guan - - and write-offs of property assets/equity stakes; James Glen Service S$35,000 S$38,000 (3) Approve specifi c budgets for capital expenditure for US$8,000 US$6,000 development projects, acquisitions and enhancements/ugrading David Wong Chin Huat S$43,000 S$46,000 of properties; S. Chandra Das S$29,000 S$31,000 (4) Review management reports and operating budgets; Hiew Yoon Khong S$28,000 S$30,000 (5) Award contracts for development projects; Kee Teck Koon - - (6) Recommend changes to the fi nancial limits for investment, etc.; Olivier Lim Tse Ghow - - (7) Report to the Board on decisions made by the Executive (with effect from 1/7/2005) Committee; and Lui Chong Chee (till 1/7/2005) - - (8) Perform such other functions as varied or delegated by the Chay Wai Chuen (till 17/09/2005) - - Board. (Alternate to S. Chandra Das) Two formal Executive Committee meetings were held during the year. The Board has established various committees to assist it in In addition, many informal discussions were held with the Executive discharging its responsibilities. These committees are listed below. Committee members, with decisions made by circular resolutions.

AUDIT COMMITTEE The Audit Committee is appointed by the Board from among the Directors of the Manager and is composed of four members, the majority of whom (including the Chairman of the Audit Committee) * inclusive of attendance fees are Independent Non-Executive Directors. The members of the Audit Committee are Mr Hsuan Owyang, Mr James Glen Service, Mr David

44 > inspire Wong Chin Huat, Mr Lui Chong Chee (up till 1/7/2005) and Mr Olivier • Monitoring the procedures in place to ensure compliance with Lim Tse Ghow (with effect from 1/7/2005). applicable legislation, the Listing Manual and the Property Fund Guidelines. The Audit Committee has a set of terms of reference defi ning its scope of authority which include, in relation to its management of CMT: The Audit Committee plans to meet with the internal and external auditors, without the presence of management, at least once a year. • Monitoring and evaluating the effectiveness of the Manager’s internal control process through reviewing internal and external The Audit Committee is authorised to investigate any matters within audit reports to ensure that where defi ciencies in internal its terms of reference. It is entitled to full access to and co-operation controls have been identifi ed, appropriate and prompt remedial by management and enjoys full discretion to invite any Director or action is taken by management; executive offi cer of the Manager to attend its meetings. The Audit Committee has full access to reasonable resources to enable it to • Reviewing the quality and reliability of information prepared discharge its functions properly. for inclusion in the fi nancial reports and approving the fi nancial statements and the audit report before recommending to the The Audit Committee has also conducted a review of all non-audit Board for approval; services provided by the external auditors and is satisfi ed that the nature and extent of such services will not prejudice the independence • Monitoring the procedures established to regulate Related Party and objectivity of the external auditors. Transactions (as defi ned below), including ensuring compliance with the provisions of the Listing Manual relating to transactions Audit Committee meetings are generally held after the end of every between CMT and an ‘interested person’, and provisions of quarter of every fi nancial year. Four Audit Committee meetings were the Property Funds Guidelines of the CIS Code (Property Funds held during the year. Guidelines) relating to transactions between CMT and an ‘interested party’; CORPORATE DISCLOSURE COMMITTEE The Corporate Disclosure Committee operates under the delegated • Approving the appointment and re-appointment of external authority of the Board. This committee reviews corporate disclosure auditors and reviewing the adequacy of existing audits in matters relating to CMT, including announcements to SGX-ST, and respect of cost, scope and performance; pursues best practices in terms of transparency. The members of this committee are Mr Hsuan Owyang, Mr Liew Mun Leong, Mr Lui Chong • Reviewing the independence and objectivity of the external Chee (up till 1/7/2005), Mr Olivier Lim Tse Ghow (with effect from auditors and non-audit services provided by the external auditors 1/7/2005) and Mr Kee Teck Koon. and confi rming that they would not, in the Audit Committee’s opinion, impair the independence of the auditors; and

inspire > 45 INspiring leaders _corporate governance

INTERNAL CONTROLS its staff. The internal audit function provided by CLIA has incorporated The Manager has put in place a system of internal controls of the auditing standards developed by the IIA into its audit practices procedures and processes to safeguard CMT’s assets, Unitholders’ and meets with the standards set by the IIA. interests and to manage risk. The Board is satisfi ed that the Manager’s internal controls are The internal audit function of the Manager is supported by adequate, based on the reports from the CLIA team and external CapitaLand’s Internal Audit Department (CLIA). CLIA plans its auditors. internal audit schedules in consultation with, but independent of, management and its plan is submitted to the Audit Committee for DEALINGS WITH RELATED PARTIES approval at the beginning of the year. The Audit Committee must also REVIEW OF PROCEDURES FOR RELATED PARTY meet with the CLIA team at least once a year, without the presence TRANSACTIONS of management. In general, the Manager has established internal control procedures to ensure that all future transactions involving the Trustee and a related A majority of the CLIA staff are members of the Singapore branch of party of the Manager (Related Party Transactions) are undertaken on the Institute of Internal Auditors, Inc. (IIA), which has its headquarters an arm’s length basis and on normal commercial terms, which are in the USA. CLIA subscribes to, and is guided by, the Standards for generally no more favourable than those extended to unrelated third the Professional Practice of Internal Auditing developed by the IIA and parties. In respect of such transactions, the Manager would have has incorporated these standards into its audit practices. to demonstrate to the Audit Committee that the transactions would be undertaken on normal commercial terms which include obtaining The standards set by the IIA cover requirements in respect of the valuations from independent valuers (in accordance with the Property following: Funds Guidelines). • Independence, • Professional profi ciency, In addition, the following procedures will be followed: • Scope of work, • Performance of audit work, and (1) Transactions (either individually or as part of a series or if • Management of the Internal Audit Department. aggregated with other transactions involving the same interested party during the same fi nancial year) equal to or exceeding To ensure that the internal audits are performed by competent S$100,000 in value, but below 3.0 percent of CMT’s net tangible professionals, CLIA recruits and employs suitably qualifi ed staff. In assets, will be subject to review by the Audit Committee at order that their technical knowledge remains current and relevant, regular intervals; CLIA identifi es and provides training and development opportunities to

46 > inspire (2) Transactions (either individually or as part of a series or if interested party transactions in the Property Funds Guidelines (as may aggregated with other transactions involving the same interested be amended from time to time) and the provisions of the Listing Manual party during the same fi nancial year) equal to or exceeding 3.0 relating to interested person transactions (as may be amended from percent, but below 5.0 percent of CMT’s net tangible assets, will time to time) as well as other guidelines as may from time to time be be subject to the review and approval of the Audit Committee. prescribed by MAS and SGX-ST or other relevant authority to apply to Such approval shall only be given if the transactions are on arm’s real estate investment trusts. length commercial terms and consistent with similar types of transactions undertaken by the Trustee, with third parties which ROLE OF THE AUDIT COMMITTEE FOR RELATED PARTY are unrelated to the Manager; and TRANSACTIONS All Related Party Transactions are subject to regular periodic reviews (3) Transactions (either individually or as part of a series or if by the Audit Committee. aggregated with other transactions involving the same interested party during the same fi nancial year) equal to or exceeding 5.0 The Manager’s internal control procedures are intended to ensure percent of CMT’s net tangible assets will be reviewed and that Related Party Transactions are conducted at arm’s length and approved by the Audit Committee which may as it deems fi t on normal commercial terms and are not prejudicial to Unitholders’ request advice on the transaction from independent sources or interests. The Manager maintains a register to record all Related Party advisors, including the obtaining of valuations from professional Transactions which are entered into by CMT (and the basis, including valuers. Further, under the Listing Manual and the Property the quotations obtained to support such basis, on which they are Funds Guidelines, such transactions would have to be approved entered into). The Manager then incorporates into its internal audit by the Unitholders of CMT at a meeting of Unitholders. plan a review of all Related Party Transactions entered into by CMT. The Audit Committee reviews the internal audit reports to ascertain Where matters concerning CMT relate to transactions entered into, that the guidelines and procedures established to monitor Related or to be entered into, by the Trustee for and on behalf of CMT with a Party Transactions have been complied with. In addition, the Trustee related party of the Manager, the Trustee is required to ensure that will also review such audit reports to ascertain that the Property such transactions are conducted at arm’s length in accordance with Funds Guidelines have been complied with. the applicable requirements of the Property Funds Guidelines and/or the Listing Manual relating to the transaction in question. Further, the The Audit Committee periodically reviews Related Party Transactions Trustee has the ultimate discretion under the Trust Deed to decide to ensure compliance with the internal control procedures and the whether or not to enter into a transaction involving a related party of relevant provisions of the Listing Manual and the Property Funds the Manager. If the Trustee is to sign any contract with a related party Guidelines. The review includes the examination of the nature of the of the Trustee or the Manager, the Trustee will review that contract transaction and its supporting documents or such other data deemed to ensure that it complies with applicable requirements relating to necessary by the Audit Committee.

inspire > 47 INspiring leaders _corporate governance

If a member of the Audit Committee has an interest in a transaction, appropriate remedies under such an agreement. The Directors he is to abstain from participating in the review and approval process of the Manager will have a duty to ensure that the Manager in relation to that transaction. complies with the aforesaid. Notwithstanding the foregoing, the Manager shall inform the Trustee as soon as it becomes aware The aggregate value of Related Party Transactions (equal to or of any breach of any agreement entered into by the Trustee for exceeding S$100,000 each in value) conducted during the fi nancial and on behalf of CMT with an affi liate of the Manager, and the year are disclosed in this Annual Report (see page 193). Trustee may take such action as it deems necessary to protect the rights of Unitholders and/or which is in the interests of DEALINGS WITH CONFLICTS OF INTEREST Unitholders. Any decision by the Manager not to take action The following procedures have been established to deal with potential against an affi liate of the Manager shall not constitute a waiver confl icts of interest which the Manager (including its Directors, of the Trustee’s right to take such action as it deems fi t against executive offi cers and employees) may encounter in managing CMT: such affi liate. (5) The Board shall include at least two Independent Directors. (1) The Manager will be a dedicated manager to CMT and will not manage any other real estate investment trust or be involved in The Directors of the Manager are under a fi duciary duty to CMT to act any other real property business. in its best interests in relation to decisions affecting CMT when they (2) All executive offi cers of the Manager will be employed by the are voting as members of the Board. In addition, the Directors and Manager. executive offi cers of the Manager are expected to act with integrity (3) All resolutions at meetings of the Board of Directors of the and honesty at all times. Manager in relation to matters concerning CMT must be decided by a majority vote of the Directors, including at least Additionally, the Trustee has been granted a right of fi rst refusal by one Independent Director. CapitaLand Retail Limited (CRTL) over all retail income producing (4) If the Manager is required to decide whether or not to take properties with certain specifi ed characteristics which may in the any action against any person in relation to any breach of any future be identifi ed and targeted for acquisition by CRTL or any of its agreement entered into by the Trustee for and on behalf of CMT subsidiaries. with an affi liate of the Manager, the Manager shall be obliged to consult with a reputable law fi rm (acceptable to the Trustee) Under the Trust Deed, in respect of voting rights where the which shall provide legal advice on the matter. If the said Manager would face a confl ict between its own interest and that law fi rm is of the opinion that the Trustee, on behalf of CMT, of the Unitholders, the Manager shall cause such voting rights to be has a prima facie case against the party allegedly in breach exercised according to the discretion of the Trustee. under such agreements, the Manager is obliged to pursue the

48 > inspire RISK ASSESSMENT AND MANAGEMENT OF BUSINESS RISK The Board generally meets quarterly, or more often if necessary, and Effective risk management is a fundamental part of CMT’s business reviews the ﬁ nancial performance of the Manager and CMT against strategy. Recognising and managing risk is central to the business a previously approved budget. The Board also reviews the risks to and to protecting Unitholders’ interests and value. CMT operates the assets of CMT and acts upon any comments of the auditors of within overall guidelines and speciﬁ c parameters set by the Board. CMT. In assessing business risk, the Board considers the economic Each transaction is comprehensively analysed to understand the environment and the property industry risk. The Board and its risk involved. Responsibility for managing risk lies initially with the Executive Committee reviews and approves all investment decisions. business unit concerned, working within the overall strategy outlined Management meets regularly to review the operations of the Manager by the Board. and CMT and discuss continuous disclosure issues.

The Manager’s focus on risk management recognises that risk The Manager has determined that signifi cant risk for CMT will most management is, prima facie, an issue for management. The risk likely arise when making property investment decisions. Accordingly, management framework supports this focus but provides a structured the Manager has set out procedures to be followed when making context for those personnel to undertake a half-yearly review of the such decisions. In accordance with this policy, the Board requires past performance of, and to profi le the current and future risks facing, comprehensive due diligence to be carried out in relation to the their areas of responsibility. proposed investment and a suitable determination is made as to whether the anticipated return on investment is appropriate having This risk information is consolidated and used as key input into regard to the level of risk. In addition, the Board requires that each the corporate strategy sessions attended by management and the major proposal submitted to the Board for decision is accompanied by Property Manager. Such sessions are held on a quarterly basis to a comprehensive risk assessment and, where required, management’s review CMT’s strategic direction in detail and include specifi c focus proposed mitigation strategies. on the identifi cation of key business and fi nancial risks which could prevent CMT from achieving its objectives. Management is then COMMUNICATIONS WITH UNITHOLDERS required to ensure that appropriate controls are in place to effectively The listing rules of SGX-ST require that a listed entity discloses to the manage those risks, and such risks and controls are monitored by the market matters that could, or might be expected to, have a material Board on a quarterly basis (or on a more frequent basis if necessary). effect on the price of the entity’s securities. In line with CMT’s The internal audit plan is developed in conjunction with the risk disclosure obligations, the Board’s policy is to inform Unitholders of all management programme and is focused on ensuring the operation major developments that impact CMT. During the year, a continuous of internal controls and assessing the effectiveness and effi ciency of disclosure process was in place to ensure that compliance with such the control environment. obligations was constantly adhered to.

inspire > 49 INspiring leaders _corporate governance

CMT believes that it should engage in regular, effective, unbiased was to update potential and current Unitholders on the developments and transparent communication with Unitholders. Communications that have taken place with regard to CMT. CMT also participates in channels with Unitholders are made accessible via: various conferences locally and in the region as part of its efforts to build interest in the REIT market for the region. The Manager will • Report to Unitholders; continue to pursue opportunities to educate and keep retail investors • Notices of, and explanatory memoranda for, extraordinary informed of the latest developments in the REIT industry. general meetings; • Press releases on major developments of the company; Unitholders and potential stakeholders have access to CMT’s website • Disclosures to SGX-ST; for information on CMT’s major developments, descriptions of CMT’s • Other announcements, as appropriate; and properties, announcements and other corporate information. Real- • CMT’s website at www.capitamall.com. time information on CMT’s Unit price is also made available on the site. In addition, members of the public can pose questions on the CMT was included in the Singapore Straits Times Index, the primary ‘Ask Us’ section of the CMT website and have their queries addressed Singapore equity market barometer in March 2005. It is also included accordingly. Also available on the website is an archive of CMT’s in other key indices such as the Morgan Stanley Capital International, announcements, press releases, annual reports and operational Inc (MSCI) Index, the FTSE European Public Real Estate Association details. The latest information is posted on the website as soon as it (EPRA) / National Association of Real Estate Investment Trust (NAREIT) is released to the SGX-ST and the media. Global Real Estate Index, the Global Property Research (GPR) General Property Shares Index, the GPR 250 Global Property Shares Index DEALINGS IN SECURITIES and the GPR 250 Global REIT Index – all of which are widely tracked The Manager has voluntarily issued guidelines to its Directors and and referred to by international fund managers as performance employees which prohibit them from dealing in CMT units while in benchmarks in the selection and monitoring of investments. possession of price-sensitive information and during the two weeks before and up to (and including) the date of announcement of CMT’s The Manager considers meetings with local and foreign fund results (quarterly, half-yearly and full-year). Under these guidelines, managers an integral part of the investor relations’ component of Directors and employees have been directed to refrain from dealing its responsibilities. During the year under review, the Manager in CMT units on short-term considerations. met with institutional investors in Singapore, Malaysia, Hong Kong, Japan, United Kingdom, United States, Middle East, various European countries and Australia. The purpose of these meetings

50 > inspire CAPITAMALL TRUST MANAGEMENT LIMITED The Manager believes that contributions from each Director can be BOARD COMPOSITION AND COMMITTEES reﬂ ected in ways other than attendances at Board and committee The matrix of the Board members’ participation on the various Board meetings. A Director of the Manager would have been appointed committees is as follows. on the principles outlined earlier in this Statement and his ability to contribute to the proper guidance of the Manager in its management of CMT. CORPORATE AUDIT EXECUTIVE DISCLOSURE MEETING ATTENDANCE BOARD MEMBERS COMMITTEE COMMITTEE COMMITTEE AUDIT Hsuan Owyang C C BOARD COMMITTEE Liew Mun Leong C M NO. OF MEETINGS NO. OF MEETINGS Pua Seck Guan M BOARD MEMBERS HELD: 4 HELD: 4 James Glen Service M David Wong Chin Huat M Hsuan Owyang 4 4 S. Chandra Das Liew Mun Leong 3 N.A. Hiew Yoon Khong Pua Seck Guan 4 N.A. Kee Teck Koon M M James Glen Service 3 3 Olivier Lim Tse Ghow M M M David Wong Chin Huat 4 4 (With effect from 1/7/2005) S. Chandra Das 3 N.A. Lui Chong Chee (till 1/7/2005) M M M Hiew Yoon Khong 2 N.A. Chay Wai Chuen (till 17/9/2005) Kee Teck Koon 3 N.A. (Alternate to S. Chandra Das) Olivier Lim Tse Ghow 2 2 (with effect from 1/7/2005) Key: C – Chairman, M - Member Lui Chong Chee (till 1/7/2005) 2 1 Chay Wai Chuen (till 17/9/2005) - N.A. (Alternate to S. Chandra Das)

inspire > 51 INspiring leaders _board of directors

DAVID WONG CHIN HUAT LIEW MUN LEONG JAMES GLEN SERVICE HSUAN OWYANG

52 > inspire S. CHANDRA DAS OLIVIER LIM TSE GHOW PUA SECK GUAN KEE TECK KOON HIEW YOON KHONG

inspire > 53 INspiring leaders _board of directors

MR HSUAN OWYANG AAviationviation AAuthorityuthority ooff SSingaporeingapore ((CAAS),CAAS), aandnd tthehe Limited and CapitaLand Financial Limited (Real CHAIRMAN & INDEPENDENT BBoardoard ooff GGovernorsovernors ooff TTemasekemasek PPolytechnic.olytechnic. MMrr Estate Capital Management - Retail), to which NON-EXECUTIVE DIRECTOR LLiewiew alsoalso servesserves asas a membermember ofof thethe CouncilCouncil positions he was appointed in 2004. Previously, (SINCE 18 OCTOBER 2001) oonn CorporateCorporate DisclosureDisclosure andand Governance,Governance, a he was responsible for developing the property With more than 50 years of experience in both nnationalational bbodyody oonn ccorporateorporate ddisclosureisclosure aandnd fund management business of CapitaLand the public and private sectors, Mr Owyang’s ggovernanceovernance iincludingncluding pprescribingrescribing ooff aaccountingccounting Limited. Before joining CapitaLand Limited, Mr portfolio includes chairmanship of the Housing sstandardstandards inin Singapore.Singapore. WithWith moremore thanthan Pua held senior positions with Lend Lease Asia and Development Board from 1983 to 1998, ttwowo ddecadesecades ooff eexperiencexperience iinn cconstructiononstruction Holding Pte Ltd and Singapore-listed Hotel the Institute of Policy Studies from 1989 to aandnd realreal estateestate inin SingaporeSingapore andand overseas,overseas, Properties Limited. Mr Pua has a Master of 2004 and the East Asian Institute management MMrr LiewLiew participatedparticipated inin a numbernumber ofof publicpublic Science degree in Civil Engineering from the board since 1997. He has also been a ssectorector infrastructuralinfrastructural developmentdevelopment projectsprojects Massachusetts Institute of Technology, USA pro-Chancellor of Nanyang Technological iinn SSingapore,ingapore, iincludingncluding tthehe ddevelopmentevelopment aandnd and a Bachelor of Science degree in Building University since 1995. In recognition of Mr cconstructiononstruction ooff CChangihangi IInternationalnternational AAirport.irport. FForor (First Class Honours) from the National Owyang’s numerous contributions, he was fi vvee years,years, hehe waswas CEOCEO ofof SingaporeSingapore InstituteInstitute University of Singapore. conferred the Distinguished Alumni Award by ooff StandardsStandards andand IndustrialIndustrial ResearchResearch (SISIR),(SISIR), the Harvard Club of Singapore in 1987 and was a statutorystatutory boardboard responsibleresponsible forfor Singapore’sSingapore’s MR JAMES GLEN SERVICE awarded the Meritorious Service Medal by the nnationalational standardsstandards andand industrialindustrial researchresearch andand INDEPENDENT NON-EXECUTIVE DIRECTOR Singapore Government in 1993. ddevelopmentevelopment toto supportsupport thethe manufacturingmanufacturing (SINCE 17 OCTOBER 2001) iindustryndustry inin Singapore.Singapore. Thereafter,Thereafter, hehe headedheaded Mr Service has 20 years of experience in fund MR LIEW MUN LEONG a ppublicublic llistedisted eengineeringngineering aandnd cconstructiononstruction management and property trusts. He is the DEPUTY CHAIRMAN & ccompanyompany inin Singapore.Singapore. FromFrom 19971997 ttoo 11998,998, MMrr Executive Chairman of JG Service Pty Limited, NON-EXECUTIVE DIRECTOR LLiewiew wwasas eelectedlected tthehe PPresidentresident ooff IInternationalnternational a specialist property consulting company. Mr (SINCE 5 JUNE 2002) OOrganisationrganisation forfor StandardisationStandardisation (ISO).(ISO). MrMr LiewLiew Service is also Chairman of ACTEW Corporation MMrr LLiewiew MMunun LeongLeong iiss PresidentPresident & CEOCEO ofof ggraduatedraduated fromfrom thethe UniversityUniversity ofof SingaporeSingapore Limited, among others. Mr Service is a Director CCapitaLandapitaLand Group.Group. HeHe isis alsoalso ChairmanChairman ofof wwithith a ccivilivil eengineeringngineering ddegreeegree iinn 11970970 aandnd iiss a of Challenger Financial Services Group Limited. CCapitaLandapitaLand RResidentialesidential Limited,Limited, CCapitaLandapitaLand rregisteredegistered pprofessionalrofessional civilcivil eengineer.ngineer. He is an independent Non-Executive Director CCommercialommercial & IntegratedIntegrated DevelopmentDevelopment of Australand Holdings Limited, a subsidiary LLimited,imited, CapitaLandCapitaLand RRetailetail LLimited,imited, aandnd DDeputyeputy MR PUA SECK GUAN of CapitaLand Limited, which is listed on the CChairmanhairman ooff CCapitaLandapitaLand FinancialFinancial Limited.Limited. CHIEF EXECUTIVE OFFICER & EXECUTIVE Australian Stock Exchange. Mr Service was CConcurrently,oncurrently, MrMr LiewLiew isis DeputyDeputy ChairmanChairman DIRECTOR (SINCE 17 OCTOBER 2001) awarded the honour of Offi cer in the General ooff TheThe AscottAscott GroupGroup LimitedLimited andand RafflRaffl eses Mr Pua is the Chief Executive Offi cer of Division for the Order of Australia in 2004, a HHoldingsoldings Limited,Limited, subsidiariessubsidiaries ofof CCapitaLandapitaLand CapitaMall Trust Management Limited and Silver Jubilee Medal in 1975 and Canberra llistedisted oonn tthehe SSGX-ST.GX-ST. HHee iiss DDeputyeputy CChairmanhairman has over 16 years of real estate experience Citizen of the Year 2001. Mr Service is a Fellow ooff CapitaMallCapitaMall TrustTrust ManagementManagement Limited,Limited, tthehe in property investment, development and of the Chartered Institute of Secretaries, a Life mmanageranager ooff CapitaMallCapitaMall TTrust,rust, tthehe fi rrstst listedlisted management. Since his appointment in Fellow of the Australian Institute of Building rrealeal eestatestate investmentinvestment trusttrust inin Singapore,Singapore, andand October 2001, he has been responsible for the and a Fellow of the Australian Society of CCapitaCommercialapitaCommercial TTrustrust MManagementanagement Limited.Limited. management of CMT. Concurrently, he is also Certifi ed Practising Accountants. AAss publicpublic service,service, MrMr LiewLiew chairschairs thethe CivilCivil the Chief Executive Offi cer of CapitaLand Retail

54 > inspire MR DAVID WONG CHIN HUAT MR HIEW YOON KHONG Limited from November 2000 to 1 April 2003. INDEPENDENT NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR Between 1996 and 2000 he was the Managing (SINCE 17 JANUARY 2003) (SINCE 1 MARCH 2002) Director and Chief Executive Offi cer of Somerset Mr Wong, a senior partner of Ramdas and Wong, Mr Hiew is currently the Chief Executive Holdings Limited, and also Executive Vice has been a lawyer in private practice with Offi cer of Mapletree Investments Pte Ltd and President at Pidemco Land Limited. Prior to that, more than 30 years’ experience in real estate, the Managing Director, Special Projects of Mr Kee held senior management appointments banking, consumer fi nance and corporate Temasek Holdings (Private) Limited. Prior to with several other organisations. He started law. He currently serves as a member of the these appointments, Mr Hiew held various his career in 1979 with the Singapore Armed Public Service Commission and the Singapore senior positions in the CapitaLand Group. He Forces and the Ministry of Defence where he Labour Foundation and is also the Chairman of joined Pidemco Land Limited as Chief Financial remained until 1991. He holds a Master of Arts Offi cer in 1996 and was Chief Financial Offi cer the Bedok Citizens’ Consultative Committee. in Engineering Science from Oxford University, of CapitaLand Limited following the merger of A Justice of the Peace, he was awarded the UK. Pidemco Land Limited and DBS Land Limited in Public Service Star (BBM) in 1991 and the 2000. In February 2002, he was made the Chief BBM(L) in 2005. Mr Wong holds a Master of MR OLIVIER LIM TSE GHOW Executive Offi cer of CapitaLand Commercial Laws degree from the University of London and NON-EXECUTIVE DIRECTOR and Integrated Development Limited (formerly a Bachelor of Laws degree from the University (SINCE 1 JULY 2005) known as CapitaLand Commercial Limited) as of Singapore. Mr Lim is currently the Chief Financial Offi cer well as CapitaLand Financial Limited. Prior of CapitaLand Group. He is also a Non- to joining CapitaLand Limited, Mr Hiew held MR S CHANDRA DAS Executive Director of CapitaCommercial various positions in the areas of corporate NON-EXECUTIVE DIRECTOR Trust Management Limited. Prior to joining fi nance, management consultancy and project CapitaLand Limited, Mr Lim was Managing (SINCE 5 JUNE 2002) fi nancing over a ten-year period. He holds Mr Das is currently the Managing Director of a Master of Arts in Economics from the Director of the Real Estate Unit, Corporate & NUR Investment & Trading Pte Ltd. He is also University of Warwick, UK and a Bachelor of Capital Market Group of Citibank Singapore. the Chairman of Nera Telecommunications Ltd, Arts degree in Economics from the University He has more than 16 years of experience in Nera Electronics Ltd as well as a director of of Portsmouth, UK. banking and fi nance, spanning diverse areas Yeo Hiap Seng Limited and The Ascott Group such as corporate fi nance, investment banking Limited. He was the Chairman of the Trade MR KEE TECK KOON and real estate fi nancial products and services. Development Board from 1983 to 1986. He NON-EXECUTIVE DIRECTOR Mr Lim holds a First Class Honours degree in served as a Member of Parliament from 1980 (SINCE 2 APRIL 2003) Civil Engineering from the Imperial College of to 1996. Mr Das was awarded the President’s Mr Kee is currently the Vice Chairman of Science, Technology and Medicine, London. Medal by the Singapore Australian Business CapitaLand Commercial and Integrated Council in 2000 and the Distinguished Service Development Limited (formerly known (Star) Award by the National Trades Union as CapitaLand Commercial Limited) and Congress in 2005. He holds a Bachelor of CapitaLand Retail Limited and is also the Arts degree in Economics (Honours) from the Chief Executive Offi cer of CapitaLand Financial University of Singapore and a Certifi cate in Limited. He was the Managing Director and Education from the former Singapore Teachers’ the Chief Executive Offi cer of The Ascott Group Training College.

inspire > 55 INspiring leaders_the trust management team

YAP MAY LI TONG KA-PIN TAN LEI KENG ALAN SEOWELLINA CHIA RICHARD NG PUA SECK GUAN

56 > inspire LIM BENG CHEE TAN TZE WOOI SHARON LIM MICHAEL CHEN JESLINE GOH JOANNA LOW LIM WAN PING

inspire > 57 INspiring leaders_the trust management team

CHIEF EXECUTIVE OFFICER INVESTOR RELATIONS & MR PUA SECK GUAN COMMUNICATIONS MANAGER Refer to description under the section on The MS TONG KA-PIN Board of Directors. Ka-Pin has more than four years of investor relations’ experience. She is responsible DEPUTY CHIEF EXECUTIVE OFFICER for strategic communication with CMT’s (SINCE 30 MARCH 2005) Unitholders, potential investors and key INVESTMENT MANAGER (HEAD) stakeholders through various communication MR LIM BENG CHEE platforms, and for providing CMTML’s Beng Chee has more than six years of real estate management with regular feedback from investment and asset management experience. the investment community. Prior to joining Prior to joining CMTML as an Investment CMTML, she was the Investor Relations Manager, he was part of the team sponsored Manager with United Overseas Bank Limited. by CapitaLand Limited to operate and create She holds a Master of Commerce degree in property funds. He also held the portfolio of Advanced Finance from the University of New Acting Finance Manager from 16 March 2004 South Wales, Australia and a Bachelor of Arts to 17 June 2004. Beng Chee holds a Master of (Economics & Mathematics) degree from the Business Administration (Accountancy) degree National University of Singapore. from the Nanyang Technological University of Singapore and a Bachelor of Arts degree INVESTMENT MANAGERS in Physics (Honours) from the University of The Investment Managers’ main responsibility Oxford, UK. lies in implementing and monitoring CMT’s strategy at a property level. This involves FINANCE MANAGER working hand-in-hand with the Property MS TAN LEI KENG Manager to ensure that the property business Lei Keng was appointed Finance Manager on 18 plans are executed diligently. Other parts June 2004 and is responsible for the sourcing of their role include advising on asset and management of funds for CapitaMall Trust enhancement initiatives within the existing (CMT). She also provides support in areas portfolio and identifying and evaluating of treasury, accounting, compliance and all potential acquisitions or divestments. ﬁ nance-related matters in line with CMT’s investment strategy and its mall portfolio MR RICHARD NG management with a focus on driving revenue Richard was a Manager of Investments and and delivering investment returns for CMT. Asset Management for CapitaLand Commercial Prior to joining CMTML, Lei Keng had extensive and Integrated Development Limited (CCID regional experience in ﬁ nance with locally- - formerly known as CapitaLand Commercial listed as well as American-listed companies. Limited), before joining CMTML. He has over She holds a Master of Business Administration 13 years of real estate experience including degree from the University of South Florida and property investment, asset management, a Bachelor of Accountancy degree from the property development, property management National University of Singapore. and marketing. He holds a Master of Science

CapitaMall Trust Management Limited - CMTML

58 > inspire (Real Estate) degree and a Bachelor of Science MS SHARON LIM Financial Analyst and holds a First Class Honours (Estate Management) degree (Honours) from Sharon has experience in property business Bachelor of Science (Real Estate) degree from the National University of Singapore. development, sales & marketing and asset the National University of Singapore. management activities in Australia, the MS JESLINE GOH Philippines and Singapore. She holds a Jesline has over nine years of experience Master of Business Administration degree FUND ANALYSTS in investment and corporate fi nance. Prior and a Bachelor of Business degree (with The Fund Analysts are responsible for to joining CMTML, she was part of the team distinction) from the Royal Melbourne Institute developing and maintaining fi nancial and asset in CapitaLand Limited that creates new of Technology, Australia. models to analyse the performance of CMT at property funds and evaluates new investment the property level, as well as preparing asset opportunities in real estate and related products. MS ELLINA CHIA reports on the properties. In addition, they Jesline is a Chartered Financial Analyst and Ellina has over nine years of real estate also assist the Investment Managers in the holds a First Class Honours Bachelor’s degree experience in lease administration, investment acquisition of new properties. in Business Administration from the National and asset management. Whilst at CapitaLand University of Singapore. Limited, she was seconded to Lend Lease MR MICHAEL CHEN Japan for 18 months to work on the acquisition Michael has over one year of real estate MR TAN TZE WOOI of non-performing loans. She holds a Bachelor experience and holds a Bachelor of Business Prior to joining CMTML, Tze Wooi was with of Business degree (Honours), specialising Management degree (cum laude) majoring Standard Chartered Bank, responsible for in Marketing, from Nanyang Technological in Finance from the Singapore Management credit research, managing client relationships University of Singapore. University. in corporate banking (real estate), and worked closely with the debt capital markets team and MS YAP MAY LI MR ALAN SEOW other product partners in delivering banking May Li has over three years of real estate Alan holds a Bachelor of Business Management solutions. He also had over four years of experience in structuring and managing private degree, majoring in Finance, from the Singapore experience in KPMG and led engagement teams equity property funds in regional markets, Management University. in carrying out assignments across various evaluation of new acquisitions and asset industries. He is a Chartered Financial Analyst management. Prior to joining CapitaLand and holds a Bachelor of Accountancy degree Limited, May Li had over seven years of (Honours) from the Nanyang Technological experience in fi nancial analysis, project University of Singapore. management, policy planning and business process re-engineering. She is a Chartered MS JOANNA LOW Financial Analyst and holds a Bachelor of Prior to joining CMTML, Joanna served as an Business Administration degree (Honours) from Asset Analyst with Lend Lease Asia Holding Pte the National University of Singapore. Ltd where she was actively involved in analytical work on new investment opportunities. MS LIM WAN PING Joanna holds a Master of Commerce degree Prior to joining CMTML, Wan Ping has close to in Advanced Finance from the University of two years of experience as a Financial Analyst New South Wales, Australia and a Bachelor of with American Express Int’l Inc, and over four Business degree from Queensland University of years of real estate experience in research, Technology. strategic planning and the investigation of overseas investment opportunities with GIC Real Estate Private Limited. She is a Chartered

inspire > 59 INspiring leaders_the property management team

SELENA CHUA CHOW CHEE KHANG LOW KIA SING THERESE CHEW SIMON HO

60 > inspire CHIEF OPERATING OFFICER GROUP MARKETING GROUP MECHANICAL & ELECTRICAL MR SIMON HO COMMUNICATIONS MANAGER DESIGN TECHNICAL SERVICES Simon joined CRMPL in 2004 and has more MS THERESE CHEW MANAGER than 19 years of experience in real estate Therese is responsible for creating and MR CHOW CHEE KHANG investment and management. He is responsible implementing programmes to attract shoppers Chee Khang works closely with CMT’s project for managing the operations of the 16 retail to CMT malls and driving tenants’ sales turnover. and centre managers and oversees the review malls in Singapore as well as the operations of This is largely achieved through innovative of mechanical & electrical services designs, its regional retail portfolio in Japan, Malaysia advertising and promotions, events and public as well as cost and time control in the various and China. He works closely with CRMPL’s relations. She also focuses on delivering asset enhancement initiatives at the malls. He asset management and investment teams to non-leasing income, which has proven to be also develops design guidelines to ensure that ensure that asset plans are executed diligently an area of signifi cant opportunity across the services designs are complied with. He also and that asset returns are optimised. Simon malls. Therese has over 10 years of experience works with the centre managers and operation holds a Master of Real Estate degree as well in the fi eld of marketing communications, in managers to implement the company’s as a Bachelor of Science (Estate Management) Singapore and regionally. She holds a Master facility management policy, including degree (Honours) from the National University of Arts degree in Mass Communications from standard operation procedures, optimisation of Singapore. Oklahoma City University, USA and a Bachelor of equipment, maintenance planning, bulk of Commerce (Marketing) degree from Curtin procurement, technical training and use of GROUP LEASING MANAGER University of Technology, Australia. latest technology products. Chee Khang has MS SELENA CHUA over 17 years of experience in the fi eld of Selena oversees all the leasing activities of GROUP TENANCY DESIGN & mechanical & electrical services in Singapore CMT’s assets, ensuring gross rental income COORDINATION MANAGER and regionally, including Malaysia, Thailand, meets or exceeds the budget and achieving MR LOW KIA SING Indonesia, Hong Kong and China. Prior to optimal occupancy rates. This includes lease Kia Sing’s primary responsibility is the review joining CapitaLand Limited in 1996, he spent six administration, key tenant relationships as well and approval of designs for shop layouts in the years as a Consultant in a leading mechanical as planning and implementation of the leasing shopping malls under CMT. He also develops & electrical consultancy fi rm in Singapore. strategy relating to tenancy mix. Supporting retail design and merchandising guidelines to medium to short-term asset enhancement ensure that high standards of design, layout plans and strategic marketing plans are also and visual merchandising are maintained in the part of her key functions. Selena has more malls, and is involved in the conceptualisation than 11 years of retail leasing and operations of asset enhancement initiatives and feasibility experience. Prior to joining CapitaLand Limited studies. Kia Sing has over fi ve years of in 1999, she was the Leasing Manager of experience in design and architecture. He Scotts Shopping Centre and was also with CB holds a Master’s degree in Architecture and a Richard Ellis (Pte) Ltd’s Retail Department for Bachelor of Arts degree (Architectural Studies) four years. She holds a Bachelor of Science from the National University of Singapore. (Estate Management) degree (Honours) from the National University of Singapore.

CapitaLand Retail Management Pte Ltd - CRMPL

inspire > 61 INtegrating people & society

We are an organisation for the people: All people. We support our managers and employees by developing them to develop our business. And, we support our local communities with charitable, educational and social activities. As an integral part of Singapore’s retail environment, we are the proud hosts of many meaningful events for worthy causes.

62 > inspire inspire > 63 INtegrating people_human resources

Singapore Retailers Association’s Excellent Service Award 2005 Presentation Ceremony At CapitaMall Trust (CMT), we recognise that our competitive advantage depends as much on the people who deliver our results as on the physical attributes of our portfolio of properties. Much of CMT’s achievements in 2005 were due to the contributions of an excellent team of competent and committed talents. Thus, leveraging on CapitaLand Limited’s Human Resource platform, CapitaMall Trust Management Limited (CMTML), the Manager, and CapitaLand Retail Management Pte Ltd (CRMPL), the Property Manager, continue to place great emphasis on investing in our human capital to maintain and enhance their level of competence as well as to provide an environment of continuous learning. We believe that investment in our human capital is central to our ability to continue to sustain our growth and increase value for all our stakeholders.

We are committed to developing our people and offer a diverse range of in-house and external programmes for our managers, executives and non-executives to acquire the relevant centre management knowledge and soft skills to help them excel in their work. We believe that investment ASSISTANT CENTRE MANAGER (ACM) PROGRAMME The ACM programme is designed to prepare Centre Manager in our human capital is Designates to assume centre management functions. It is a systematic training programme focused on effective centre management skills, central to our ability to covering training in a full spectrum of functions such as leasing, marketing and communication operations, fi nance, projects and continue to sustain our human resources. The programme, which spans a period of three to six months, includes an experiential learning component where growth and increase value trainees are provided with on-the-job experience in simulated activities such as fi re drill, building inspection, electrical shutdown, and tenancy fi t-out. Professional guidance in people management, for all our stakeholders. fi nancial management and IT skills form a key part of the agenda. Since its introduction in 2004, six staff have undergone this training. Of the six, two have assumed Centre Manager responsibilities.

64 > ininspire ON-THE-JOB TRAINING (OJT) Since the launch of the OJT program for Customer Service Assistants (CSAs) and Technicians in 2004, more than 90 percent of our CSAs and Technicians have been trained. In addition to the in-house OJT programmes, training by external providers is included in the company’s initiatives to beef up core competencies in customer service for Customer Service Assistants and facilities management for Technicians. External training to boost our customer service standards includes a customised core programme on ‘Creative Ways to Solve Customers’ Problems’. In November 2005, in recognition of their excellent service standards, nine of our CSAs were awarded the Singapore Retailers’ Association’s Excellent Service Award. These awards are a testimony to the success of the OJT programme and afﬁ rm our commitment to enhancing shoppers’ experience at our malls.

STUDY TOURS A study trip to Japan covering Tokyo and Osaka was organised for a group of 14 participants from CRMPL and CMTML. The study trip provided the participants with the opportunity to learn about the retail scene in Japan.

Through a guided tour of select retail malls in both Tokyo and Osaka, participants gained valuable insights on Japanese retail management – from marketing strategies, shop front & interior designs to innovative On the job training shopping experiences and promotions. The participants shared their key learning experiences with their colleagues through a presentation upon their return.

OVERSEAS WORK OPPORTUNITIES As part of CMT’s commitment to harness the best talent and plan their career paths and development, employees are given the opportunity to do overseas assignments. Overseas work experience provides our staff with the opportunity to gain global exposure. It also challenges them to adapt to different countries, cultures and operational settings and allows them to build their global networks.

BUILDING BONDS To foster camaraderie and esprit de corps, various social and recreational events were organised in 2005. Activities such as bowling, soccer, Chinese New Year and year-end parties drew widespread participation. Japan study trip team photo

ininspire > 65 INtegrating society_corporate social responsibility

Wallace & Gomit character at KK Women’s and Children Hospital

At the startof the year, Governmental Organisations (NGOs) or CapitaMall Trust (CMT) responded to the Voluntary Welfare Organisations (VWOs). public appeal to help the victims of the Earlier 70,000 sq ft of Gross Floor Area Bay of Bengal earthquake and tsunami (GFA) from the offi ce tower was converted with our own community project involving for retail usage. The offi ce tower would the sale of special edition Lunar New Year originally have had to be demolished to compact discs at Funan DigitaLife Mall, maintain Junction 8’s original total GFA. The IMM Building, Junction 8, Plaza Singapura new guidelines, however, provided an ideal and Tampines Mall. A total of S$177,000 way for us to reach out to the community. At was raised and subsequently channelled a commemorative ceremony in March 2005, through the Singapore Red Cross Society to graced by Mrs Yu-Foo Yee Shoon, Minister Yayasan Wisma Anak Korban Bencana Alam of State for Community Development, Youth NAD & Sumut Orphanage in Medan, North and Sports, CapitaMall Trust Management Sumatra. The money was used to build a Limited (CMTML), the Manager of CMT was computer laboratory for the residents of the able to give 55,000 sq ft of rent-free space orphanage. at Junction 8’s offi ce tower to the National Council of Social Services for their VWOs. As our portfolio grows, we are continuing to explore new ways to turn our malls In addition, we have recently created open into centres of activity to embrace and landscaped plazas on the rooftops of both benefi t the community. Following the Urban Tampines Mall and Junction 8 which are Redevelopment Authority’s announcement excellent locations for events and activities, in January 2005 of revised guidelines for and we have made the event space available the integration of community facilities in to charitable organisations to further our existing private commercial developments, corporate social responsibility goals. In we identifi ed an opportunity to offer August 2005, The Straits Times held ‘The Winning Team for ‘The School of Rock’ contest space at Junction 8’s offi ce tower to Non- School of Rock’ contest in conjunction with

6666 >> ininspirespire Other than fund raising, we also work with various organisations to promote key campaigns with the aim of improving the quality of life.

their 160th anniversary celebrations at attended school without a proper breakfast, We did not confi ne our community efforts to Junction 8’s open landscaped plaza, with or any pocket money to sustain them during our malls, and at year-end we spread some the aim of promoting Singapore’s talented the school day. The money raised alleviates Christmas cheer by arranging for the movie teen rock bands. the parents’ fi nancial burden of providing cartoon characters, Wallace & Gromit to for their children’s education and, at the cheer up the sick children recuperating In recognition of our strong support for same time, helps children who are already at KK Women’s and Children’s Hospital. the community, we are now approached facing diffi culties in remaining in school to The children’s happy and smiling faces by more NGOs for assistance with their continue their education. certainly told us that our efforts were much community projects. In September, appreciated. Junction 8 and Plaza Singapura helped the In addition to fund-raising, we work with Singapore Corporation of Rehabilitative various organisations to promote key Enterprises by providing roadshow space campaigns which aim to improve the quality for a ‘Sale of Yellow Ribbons’ to enhance of life of their benefi ciaries. From April 2005 community acceptance and support for ex- to June 2005, Tampines Mall offered a push offenders and their families, and to raise cart to the Down Syndrome Association so funds for ex-offenders to facilitate their that their physically challenged members reintegration into society. could interact with the public by selling their wares and, in the process, learn to Customer Service Assistant selling a bear to a Since October 2005, we have worked jointly lead a normal life. In another example, IMM customer. with The Straits Times School Pocket Money Building collaborated with KK Hospital’s KK Fund on an exclusive promotion to sell their Juniors Club in August 2005 to organise a offi cial bears for S$3 each at our customer ‘Best Breastfed Baby’ contest. This event service counters. The Straits Times School aimed to create awareness amongst Pocket Money Fund was created to mothers of the benefi ts of breastfeeding heighten public awareness of the plight their babies, and drew an overwhelming of children from low-income families who number of 600 contestants!

ininspire >> 6767 68 > inspire INvestor Relations

We believe in communication: Frequent and relevant communication. This ensures that all our stakeholders are kept aware of the speciﬁ cs of our performance, proﬁ tability and plans in a timely manner. And, we provide a two-way communication platform for the analysts and media to clarify queries and for management to obtain feedback from the investment and media communities.

inspire > 69 INvestor relations

CapitaMall Trust’s (CMT) strong commitment to good investor relations was once again recognised in September 2005 when, for the second year running, we won the ‘Most Transparent Company’ Award at the Securities Investors Association (Singapore) (SIAS) Investors’ Choice Awards, nominated by analysts, fund managers and media.

Investor relations remains a top priority for CapitaMall Trust Management Limited (CMTML), the Manager of CMT, and the Manager believes in maintaining an open and continuous channel of the number of US and Australian Unitholders on our register. This can communication with the investment and media communities through also be attributed to CMT’s inclusion in the Singapore Straits Times various avenues. In addition to hosting media-cum-analysts’ results Index, the primary Singapore equity market barometer, in March 2005 briefi ngs every six months to update on CMT’s performance and mid and inclusion in other key indices such as the Morgan Stanley Capital to long-term strategies, the management of the Manager devotes International, Inc (MSCI) Index, the FTSE European Public Real Estate a substantial amount of time to regular meetings with local and Association (EPRA) / National Association of Real Estate Investment foreign fund managers at one-on-one or group sessions, conference Trust (NAREIT) Global Real Estate Index, the Global Property Research calls, investor luncheons, corporate days, conferences and overseas (GPR) General Property Shares Index, the GPR 250 Global Property roadshows. Shares Index and the GPR 250 Global REIT Index – all of which are widely tracked and referred to by international fund managers During the year, the management of the Manager met institutional as performance benchmarks in the selection and monitoring of investors from Singapore, Malaysia, Hong Kong, Japan, United investments. Kingdom, United States, Middle East, various European countries and Australia. Mall tours were also conducted for existing and potential UNIT PRICE PERFORMANCE Unitholders who were keen to see the properties in our portfolio CMT’s unit price appreciated signifi cantly during the fi nancial year and to better understand operations at the malls. In addition, retail 2005, from the closing price of S$1.76 on 31 December 2004 to the and institutional Unitholders were kept abreast of key updates closing price of S$2.24 on 30 December 2005. This translated to a gain through email alerts, ‘LIVE’ audio cast on Bloomberg of the media- of 27.3 percent, outperforming the STI which recorded a gain of 13.6 cum-analysts’ results briefi ngs, and information posted on CMT’s percent. CMT’s gain from its unit price appreciation outperformed the website. As the website is usually the fi rst point of contact for most gain achieved by the Singapore Property Equities Index (SESPROP) for overseas investors, the Manager embarked on a major website the fi rst eight months of the fi nancial year 2005, but was marginally revamp to enhance its navigation and to provide investors with a lower for the remaining four months of the year. Rising interest rates more comprehensive set of information. The new CMT website was concerns had dampened investors’ confi dence which resulted in a recently launched in February 2006. weakening in all Singapore Real Estate Investment Trusts (SREITs) prices. The volume weighted average closing price for the year In 2005, CMT’s free fl oat was increased from 61.01 percent to 66.02 was approximately S$2.25, 42.0 percent higher than the volume percent in response to feedback from the investment community weighted average closing price of S$1.58 for fi nancial year 2004. that they would like to see CapitaLand Group’s holdings return to an Trading liquidity also improved signifi cantly in 2005 to approximately earlier level of just over 30.0 percent from close to 40.0 percent. The 354 million units, registering an increase of 15.0 percent over the increase in free fl oat was achieved by the CapitaLand Group electing approximately 308 million units traded in 2004. Overall, CMT’s strong not to subscribe any of the new units issued under the Preferential performance is testament to investors’ confi dence in our desirability Offering during the Equity Fund Raising exercise in October 2005. As as an investment product, which offers opportunities for capital a result, CMT’s Unitholder base was enlarged with the addition of growth on top of attractive and stable distribution income. many new institutional investors, including a substantial number of quality investors from Switzerland and Australia. YIELD AND TOTAL RETURN CMT continued to provide attractive income yield and total return as In addition, as more US and Australian institutional funds obtain compared to other local investment instruments. As at 31 December mandates to invest in Asian REITS, CMT has witnessed a growth in 2005, CMT’s annualised DPU yield was 4.923 percent. This was 171

1 As at 31 December 2004 basis points above the 10-year government bond of 3.21 percent on 2 As at 31 December 2005 the same day. 3 Based on annualised DPU of 11.02 cents for the period from 31 October 2005 to 31 December 2005 and the closing unit price of S$2.24 as at 30 December 2005. 7070 >> ininspirespire For the second year running, we won the ‘Most Transparent Company’ Award at the Securities Investors Association (Singapore) (SIAS) Investors’ Choice Awards, nominated by analysts, fund managers and media.

Unitholders who held CMT units for the period 1 January 2005 to UNITHOLDER ENQUIRIES 31 December 2005 would have received an attractive total return If you have any enquiries or would like to ﬁ nd out more about CMT, please contact: of 33.14 percent, consisting of capital appreciation of 27.3 percent and a distribution yield of 5.8 percent. Unitholders who held CMT The Manager units for the period from the listing of CMT on 17 July 2002 to 31 Ms Tong Ka-Pin December 2005 would have received a total return of 165.85 percent, Investor Relations & Communications Manager Phone: +65 6536 1188 consisting of capital appreciation of 133.4 percent and a distribution Fax: +65 6536 3884 yield of 32.4 percent. Email: [email protected] Website: www.capitamall.com Moving forward, investor relations, to articulate CMT’s growth The Unitholder Registrar strategy to both current and potential Unitholders in Singapore and Lim Associates (Pte) Ltd overseas, will continue to be an integral part of the Manager’s role. 10 Collyer Quay The Manager will also seek to uphold the highest level of corporate #19-08 Ocean Building governance and transparency standards by providing the investment Singapore 049315 Phone: +65 6536 5355 and media community with clear, concise and timely information. Fax: +65 6536 1360 Website: www.boardroomlimited.com

FINANCIAL CALENDAR 2006 – 2007 (TENTATIVE) THE UNITHOLDER DEPOSITORY April 2006 For depository-related matters such as change of details 2006 First-Quarter Results Announcement pertaining to Unitholders’ investment records, please contact:

May 2006 The Central Depository (Pte) Limited 2006 First-Quarter Distribution to Unitholders 4 Shenton Way #02-01 SGX Centre 2 July 2006 Singapore 068807 2006 Second-Quarter Results Announcement Tel: +65 6535 7511 Fax: +65 6535 0775 August 2006 Email: [email protected] 2006 Second-Quarter Distribution to Unitholders Website: www.cdp.com.sg

October 2006 2006 Third-Quarter Results Announcement

November 2006 2006 Third-Quarter Distribution to Unitholders

January 2007

2006 Full-Year Results Announcement 4 Based on total DPU of 10.23 cents for the ﬁ nancial year ended 31 December 2005, the closing unit price of S$1.76 on 31 December 2004 and the closing unit price of S$2.24 on 30 December 2005. 5 Based on total actual DPU of 31.12 cents since the listing of CMT on 17 July 2002, the Initial Public Offering Price of February 2007 CMT units of S$0.96 and the closing unit price of S$2.24 on 30 December 2005. 2006 Final Distribution to Unitholders

ininspirespire >> 7171 INvestor relations

COMPARATIVE PRICE TREND

CMT STRAITS TIMES INDEX SESPROP INDEX

MONTH END CLOSING NORMALISED CLOSING NORMALISED CLOSING NORMALISED UNIT PR INDEX VALUE INDEX VALUE (S$)

Dec-04 1.76 100.00 2,066.14 100.00 517.69 100.00 Jan-05 2.01 114.20 2,096.32 101.46 535.68 103.48 Feb-05 2.02 114.77 2,119.40 102.58 553.08 106.84 Mar-05 2.04 115.91 2,141.43 103.64 537.64 103.85 Apr-05 2.18 123.86 2,125.25 102.86 568.71 109.86 May-05 2.38 135.23 2,161.77 104.63 534.21 103.19 Jun-05 2.38 135.23 2,212.66 107.09 565.93 109.32 Jul-05 2.59 147.16 2,352.56 113.86 647.35 125.05 Aug-05 2.41 136.93 2,275.43 110.13 650.12 125.58 Sep-05 2.35 133.52 2,305.14 111.57 711.74 137.48 Oct-05 2.31 131.25 2,216.77 107.29 697.64 134.76 Nov-05 2.25 127.84 2,300.25 111.33 698.19 134.87 Dec-05 2.24 127.27 2,347.34 113.61 721.20 139.31

SESPROP: Singapore Property Equities

% CHANGE IN UNIT PRICE / INDEX VALUE CMT 150 SESPROP INDEX From 31 Dec 2004 to 30 Dec 2005 STRAITS TIMES INDEX CMT +27.3% STI +13.6% 140 SESPROP +39.3%

130

120

110

100 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05

Source: Bloomberg

72 > inspire COMPARATIVE YIELDS CMT TRADING DATA BY YEAR

Yield (% per annum) 2002* 2003 2004 2005 4.92 5 Unit Price (S$) 4.29 171 basis points Highest 1.06 1.43 1.76 2.66 4 Lowest 0.975 1.00 1.36 1.73 3.21 3.01 Average Closing 1.02 1.17 1.58 2.25 3 2.50 Last Done 1.01 1.43 1.76 2.24 1.96 2 Turnover (million units) 97.5 261.4 307.5 353.7 0.86 1

* CMT commenced trading on 17 July 2002 0

CMT1 10-Yr Govt 5-Yr Govt STI4 SESPROP5 CPF Ordinary S$ 12-Mth Bond2 Bond3 Account6 Fixed Deposit7

Notes 1. Based on the annualised distribution per unit of 11.02 cents for the period 31 October 2005 to 30 December 2005, and the year-end closing price of S$2.24 on 30 December 2005. 2. Singapore Government 10-Year Bond yield as at 30 December 2005. 3. Singapore Government 5-Year Bond yield as at 30 December 2005. 4. Average 12-month gross dividend yield of Straits Times Index stocks as at 30 December 2005. 5. Average 12-month gross dividend yield of Singapore Property Equities Index stocks as at 30 December 2005. 6. Prevailing CPF Ordinary Account savings rate. 7. Average S$12-Month ﬁ xed deposit savings rate as at 31 December 2005.

CMT MONTHLY TRADING PERFORMANCE IN 2005

Month-End Closing Unit Price (S$) Million Units

2.8 50

2.6

2.4 40

2.2 30 2.0

1.8 20 1.6

1.4 10 1.2

1.0 0 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05

CLOSING UNIT PRICE (S$) TURNOVER (Million Units)

Source: Bloomberg , CPF Board & CMTML

ininspirespire >> 7373 74 > inspire IN Review We have enjoyed a successful year: A very successful year. We have capitalised on our strategic geographic diversiﬁ cation and all our malls have prospered. And, we have shown a capacity to evolve in order to meet the changing needs and demands of shoppers and retailers. Through our six proven growth strategies, we aim to hold onto our position as the largest Real Estate Investment Trust by market capitalisation and asset size in Singapore.

inspire > 75 IN review_market overview

SINGAPORE’S ECONOMY IN 2005 Buoyed by the positive The year started on a solemn note with several of Singapore’s closest neighbours struggling to come to terms with the devastation economic mood, the retail caused by the 2004 Boxing Day tsunami. The world also witnessed property sector was in a other adversities during the year, including natural disasters (such as Hurricane Katrina in the US and the earthquake in Kashmir) and healthy state throughout the terrorist attacks in London, Bali and elsewhere. year, with high demand for Fortunately, nonetheless, Asia’s economic progress on the whole remained steadfast, powered by the twin engines of China and space from both local and India as well as encouraging signs of improvement in the Japanese international retailers, and economy. Singapore’s economy, building from 2004’s solid base and beneﬁ ting the entry into the market of from the favourable external environment and the government’s restructuring and upgrading efforts, continued to perform strongly many new brands and retail particularly in the second half of the year. Gross Domestic Product operators. (GDP) expanded by 6.4 percent for the full year, with the individual quarters recording year-on-year growth of 3.4 percent, 5.7 percent, 7.6 percent and 8.7 percent, respectively. The growth was broad- based, experienced across almost all sectors.

Reﬂ ecting the upbeat mood, Singapore’s main stock market barometer, the Straits Times Index, climbed 14 percent to end the year at 2,347 points, just a shade off 1999’s all-time year-end ﬁ nish of 2,480 points.

Retail sales and catering sales in 2005 rose by 12.4 percent and 6.4 percent, respectively, over 2004. This was not surprising given the general increase in wages and wealth that accompanied economic growth, and glowing tourism numbers that saw a record 8.94 million

76 > inspire Barring unforeseen circumstances, we believe that the economy is well on track to meet or even exceed the government’s forecast. This belief emanates from the sterling economic performance in the second half of 2005, which has created strong forward momentum for 2006. Indeed, among businesses and the population at large, there is widespread optimism regarding business conditions and the job market.

Further boosting the positive sentiments, the government’s recent Budget 2006 announcement carried a wide array of pro-business measures. In addition, the government intends to share its budget surpluses with all Singaporeans by way of cash and other bonuses to the tune of S$2.6 billion. Lower wage workers and lower income households are expected to beneﬁ t the most, and this will create positive impact on domestic demand and consumption.

In terms of new retail space supply, based on government data we estimate that in 2006 and 2007 a total of around 1.5-1.6 million sq ft of net lettable area will materialise in the private sector market. visitors to the island (up 7.3 percent from 2004). The annual retailing While the quantum appears sizeable, some 1.0 million sq ft thereof highlight, the Great Singapore Sale (held from 27 May to 24 July will actually be contained within a single development slated for end- 2005), generated record sales of S$5.0 billion compared with S$4.6 2006 – ViVoCity in the HarbourFront area. Accordingly, we believe million in the previous year. that the supply of retail space for the island at large will remain relatively tight, thus lending support to retail occupancies and rents RETAIL PROPERTY SECTOR IN 2005 in general. Buoyed by the positive economic mood, the retail property sector was in a healthy state throughout the year, with high demand for Overall, we believe that economic and business conditions will be space from both local and international retailers, and the entry of very positive this year, barring unforeseen circumstances. As such, many new brands and retail operators into the market. Moreover, we project that the retail property market this year will perform just with a net addition of only some 75,000 sq ft (or 0.35 percent) in the as strong as, or even outperform, 2005. private sector’s stock of retail net lettable area, supply was tight and occupancy and rents held up well. THE REIT INDUSTRY IN 2005 2005 was another year of signifi cant growth for the Singapore REIT According to market sources, prime retail rents rose by between 1 and industry. Mapletree Logistics Trust and Prime REIT (subsequently 3 percent on average during the year, and prime retail malls generally renamed Macquarie MEAG Prime REIT) were listed in July 2005 maintained occupancies at or near 100 percent. and September 2005, respectively. This increased the number of Singapore-listed REITs to seven, further adding to the depth and The year was highlighted by several major government land sales diversity of the market. By year-end, the total market capitalisation of for retail-related developments, including a 360,000-sq ft site in the Singapore REIT sector had reached S$10.7 billion, an increase of Jurong West and the prime 200,000-sq ft Orchard Turn site. Keen more than 50 percent from S$7.0 billion a year ago. competition for these sites by local and international property players bore evidence to the long-term optimism in Singapore’s retail industry In October 2005, the Monetary Authority of Singapore refi ned its and retail property market. Property Fund Guidelines to, among other things, strengthen the corporate governance of REITs and incorporate higher fl exibilities in OUTLOOK FOR 2006 their investment activities. The key changes to the guidelines are: Most Asian economies are expected to continue to do well in 2006, and Singapore will benefi t from this. The current offi cial GDP 1. More stringent and robust criteria for the entry of REIT managers forecast for Singapore is a healthy growth of between 4.01 and 6.01 and the investment by REITs into assets owned by interested percent. Nonetheless, risk factors do exist that may get in the way parties such as the REIT’s sponsor, manager and trustee; of the region’s growth, including the threats of rising oil prices and terrorism. 1 Source: Ministry of Trade and Industry. inspire > 77 IN review_operations & fi nancial review

1. Granting of tax exemption on remittances of foreign-sourced The acquisitions added interest and distributions received by REITs listed in Singapore; and another $9.6 million to the 2. Allowing Singapore-listed REITs to recover Goods and Services Net Property Income of the Tax on expenses incurred in the setting-up of and operations of special-purpose vehicles for the holding of foreign non- residential assets, as well as in the acquisition of foreign non- portfolio for the year ending residential assets by such vehicles.

2005. The Manager will The above are important incentives to encourage cross-border REITs in Singapore and also the acquisition of foreign assets by local REITs. These measures will stand Singapore in good stead in its continual continue to pursue other development as a key regional REIT centre. acquisitions that will be yield- In the regional arena, the eagerly-awaited Hong Kong REIT market fi nally took off in late-2005 with a quick succession of three listings accretive to the portfolio. in the space of little more than a month. Leading the way was the Hong Kong Housing Authority’s LINK REIT which had an IPO market capitalisation of US$2.6 billion, the largest-ever in the world. Another of the Hong Kong listings, GZI REIT, is also noteworthy in that it is the fi rst in the world with an asset portfolio comprising properties in mainland China. Elsewhere in the region, Taiwan also launched its fi rst REIT and Malaysia saw several new listings under its revamped REIT guidelines.

Looking forward, we foresee that both Singapore’s and the region’s REIT markets will continue to grow strongly this year, given the high level of international interest in Asian real estate markets and regional governments’ commitment and efforts to develop their REIT sectors.

OPERATIONS REVIEW

2. Clear provisions and stipulations to facilitate the acquisition of YIELD-ACCRETIVE ACQUISITIONS foreign property assets and the partial ownership of property In 2005, CapitaMall Trust (CMT) acquired four malls: Sembawang assets by REITs; and Shopping Centre (10 June 2005), 96.7 percent of the strata area of Hougang Plaza (progressively on 20 June 2005, 30 June 2005 and 16 3. Greater fl exibility for the capital structure of REITs, and yet August 2005), Jurong Entertainment Centre (31 October 2005) and concurrently more stringent controls on the use of fi nancial Bugis Junction (31 October 2005). engineering measures. More specifi cally, the previous 35 percent borrowing limit (measured against deposited property) Bugis Junction is the largest of the four malls and is located at the has been replaced by a 35 percent leverage limit (measured heart of Singapore’s Arts, Culture, Learning and Entertainment Hub. against deposited property) encompassing both borrowings The mall is directly connected to the Bugis Mass Rapid Transit station and deferred payments. Furthermore, the leverage limit may and is well served by major bus routes. increase up to 60 percent subject to the REIT obtaining and disclosing a credit rating by a major rating agency. The acquisitions added another $9.6 million to the Net Property Income (NPI) of the portfolio for the year ending 2005. CapitaMall More recently in the government’s Budget 2006 announcements in Trust Management Limited (CMTML), the Manager of CMT, will February 2006, two key measures were introduced with the aim of continue to pursue other acquisitions that will be yield-accretive to further developing the local REIT industry: the portfolio.

78 > inspire TAMPINES MALL Number of food kiosks on Basement 1 increased from 13 to 18 following a reconﬁ guration exercise to maximise the space efﬁ ciency.

JUNCTION 8 An open landscape plaza, called Top of the 8, which comes complete with a children’s playground, stage facilities and promotional space was created on Level 3.

JURONG ENTERTAINMENT CENTRE A new food court was created through the amalgamation of two retail units.

PLAZA SINGAPURA FUNAN DIGITALIFE MALL Customer service counter was relocated Thematic zone, called ‘Inbox 5’, with a focus to lower yielding space to make way for on digital and electronic devices was created on Level 5. a new tenant.

inspire > 79 IN review_operations & ﬁ nancial review

KEY ASSET ENHANCEMENT INITIATIVES Singapura, and the amalgamation of two shop units to create a new One of the major asset enhancement works completed in 2005 food court at Jurong Entertainment Centre. In total these works have was the revamp of food kiosks at Basement 1 of Tampines Mall. resulted in approximately S$1.7 million of additional revenue per The number of kiosks was increased from 13 to 18 and the work annum. contributed approximately S$0.4 million per annum of additional revenue to the portfolio. PERFORMANCE REVENUE Junction 8 saw the completion of its Open Landscaped Plaza on Level Gross revenue for the fi nancial year ended 31 December 2005 was 3, which will be used to host more activities and events to attract S$243.1 million, an increase of S$65.9 million or 37.2 percent over people to the mall and increase sales for the retailers. S$177.2 million for the fi nancial year ended 31 December 2004. The higher revenue was mainly due to the full-year contribution from Other asset enhancement works completed in 2005 include the Plaza Singapura of S$61.5 million, against S$23.9 million for the creation of InBox 5 at Funan DigitaLife Mall, four glass kiosks at IMM period from 2 August 2004 to 31 December 2004. Also contributing to Building (IMM), various reconfi guration and relocation works at Plaza the higher gross revenue were new acquisitions, namely Sembawang

GROSS REVENUE BY PROPERTY (FY2005) GROSS REVENUE BY PROPERTY (FY2004)

Tampines Mall 20.8% Tampines Mall 27.2%

Junction 8 16.6% Junction 8 18.9%

Funan DigitaLife Mall 9.3% Funan DigitaLife Mall 12.3%

IMM Building 21.7% IMM Building 28.1%

Plaza Singapura 25.3% Plaza Singapura 13.5%

Bugis Junction 3.5% FY 2005: S$243.1 million FY 2004: S$177.2 million Others1 2.8%

1 Comprising Hougang Plaza Units, Sembawang Shopping Centre and Jurong Entertainment Centre.

GROSS REVENUE BY PROPERTY GROSS REVENUE FOR THE PERIOD 31 OCTOBER TO 31 DECEMBER 2005

1 JANUARY TO 31 OCTOBER TO 30 OCTOBER 2005 31 DECEMBER 2005 ACTUAL VS FORECAST1 ACTUAL VS FORECAST2 S$MIL S$MIL S$MIL S$MIL

Tampines Mall 17.2% Tampines Mall 41.6 40.0 8.9 8.7 Junction 8 13.9% Junction 8 33.2 30.5 7.2 6.7 Funan DigitaLife Mall 7.9% Funan DigitaLife Mall 18.5 18.1 4.1 4.0 IMM Building 43.6 36.2 9.1 8.3 IMM Building 17.6% Plaza Singapura 50.6 49.1 10.9 10.4 Plaza Singapura 21.0% Bugis Junction - - 8.6 8.4 Bugis Junction 16.6% Others3 3.8 - 3.0 2.8 Others1 5.8% Total 191.3 173.9 51.8 49.3

1 Comprising Hougang Plaza Units, Sembawang Shopping Centre and 1. Based on the forecast, together with the accompanying assumptions, shown in the CMT Circular dated 20 July 2004 for the ﬁ nancial Jurong Entertainment Centre. year ended 31 December 2005, pro-rated for the period 1 January 2005 to 30 October 2005. 2. Based on the forecast, together with the accompanying assumptions, shown in the CMT Circular dated 18 October 2005 (adjusted to include actual gross revenue for 31 October 2005). 3. Comprising Hougang Plaza Units, Sembawang Shopping Centre and Jurong Entertainment Centre.

80 > inspire Shopping Centre, Hougang Plaza Units, Jurong Entertainment Centre new properties, increased rental income from the other malls, and and Bugis Junction, increased rental income from the other malls and newly created retail spaces at Junction 8 which were completed in the newly created retail spaces at Junction 8, some of which were December 2004 also contributed to the improved NPI. only completed in December 2004. ASSETS NET PROPERTY INCOME The total assets as at 31 December 2005 for CMT and its associate As a result of the higher gross revenue, NPI for the full year ended 31 were S$3,483.6 million, compared with S$2,361.7 million as at 31 December 2005 was S$154.1 million, an increase of S$39.9 million December 2004. The increase of S$1,121.9 million was mainly due or 34.9 percent over S$114.2 million for the ﬁ nancial year ended to the acquisitions of Sembawang Shopping Centre, Hougang Plaza 31 December 2004. Similarly, this was mainly due to the increase Units, Jurong Entertainment Centre and Bugis Junction, as well as an of S$26.1 million from the full-year contribution of S$43.8 million increase in property valuations for the other properties. from Plaza Singapura compared with S$17.7 million for the period 2 August 2004 to 31 December 2004. Contribution from the four

NET PROPERTY INCOME BY PROPERTY (FY2005) NET PROPERTY INCOME BY PROPERTY (FY2004)

Tampines Mall 22.6% Tampines Mall 29.8%

Junction 8 17.2% Junction 8 18.6%

Funan DigitaLife Mall 8.7% Funan DigitaLife Mall 12.0%

IMM Building 16.8% IMM Building 24.1%

Plaza Singapura 28.4% Plaza Singapura 15.5%

Bugis Junction 3.6% FY 2005: S$154.1 million FY 2004: S$114.2 million Others1 2.7%

1 Comprising Hougang Plaza Units, Sembawang Shopping Centre and Jurong Entertainment Centre.

NET PROPERTY INCOME NET PROPERTY INCOME BY PROPERTY FOR THE PERIOD 31 OCTOBER TO 31 DECEMBER 2005

1 JANUARY TO 31 OCTOBER TO 30 OCTOBER 2005 31 DECEMBER 2005 ACTUAL VS FORECAST1 ACTUAL VS FORECAST2 S$MIL S$MIL S$MIL S$MIL

Tampines Mall 28.8 27.8 6.1 6.0 Tampines Mall 18.8% Junction 8 21.8 20.6 4.7 4.3 Junction 8 14.5% Funan DigitaLife Mall 11.5 10.7 1.8 2.4 Funan DigitaLife Mall 5.6% IMM Building 20.9 18.6 5.0 4.9 Plaza Singapura 36.3 35.9 7.5 7.5 IMM Building 15.4% Bugis Junction - - 5.5 5.5 Plaza Singapura 23.1% Others3 2.4 - 1.8 1.7 Bugis Junction 17.0%

Total 121.7 113.6 32.4 32.3 Others1 5.6%

inspire > 81 IN review_operations & ﬁ nancial review

DISTRIBUTIONS For 2005, CMT made distributions of 10.23 cents which comprised DISTRIBUTION PER UNIT 2.47 cents, 2.51 cents, 3.38 cents and 1.87 cents for the periods 1 January to 31 March 2005, 1 April 2005 to 30 June 2005, 1 July to 10.23 cents 30 October 2005 and 31 October to 31 December 2005, respectively. 9.48 cents In the fi nancial year ended 31 December 2004, CMT distributed 5.41 1.87 cents per unit for the period from 1 January 2004 to 1 August 2004 4.07 and 4.07 cents per unit for the period from 2 August 2004 to 31 3.38 31 Oct 2005 to 31 Dec 2005 December 2004. Overall, the total distribution for the fi nancial year 1 Jul 2005 to 30 Oct 2005 ended 31 December 2005 of 10.23 cents per unit was an increase of 1 Apr 2005 to 30 Jun 2005 8.0 percent over the total distribution for the fi nancial year ended 31 2.51 December 2004 of 9.48 cents per unit. 5.41 1 Jan 2005 to 31 Mar 2005

2 Aug 2004 to 31 Dec 2004 In line with our objective to deliver regular and consistent returns to 2.47 1 Jan 2004 to 1 Aug 2004 Unitholders, CMT commenced distribution payments on a quarterly basis with effect from our ﬁ rst-quarter distribution in the ﬁ nancial 2004 2005 year ended 31 December 2005. This allows Unitholders to receive distributions more regularly.

TOP TEN TENANTS The gross rental income is distributed amongst the different tenants, with BHG (Singapore) Pte Ltd, formerly known as Seiyu (Singapore) Private Limited. making the highest contribution of 4.12 percent. The top ten tenants contributed 22.92 percent of the total gross income for CMT. TRADE EXPIRY AREA % OF GROSS % OF NET TENANT SECTOR DATE 1 (SQ FT) RENTAL LETTABLE INCOME2 AREA3 BHG (Singapore) Pte Ltd, Department store May 10 & April 15 210,715 4.1% 7.2% formerly known as Seiyu (Singapore) Private Limited Cold Storage Singapore Supermarkets / Feb 06, Mar 06, Jul 06, 192,467 4.0% 6.6% (1983) Pte Ltd Services / Aug 06, Sep 06, Oct 06, Warehouse Nov 06, Mar, 07 Jun 07, Jul 07 , Oct 07, Mar 08 & Dec 09 Golden Village Leisure & Feb 08, Nov 09 116,056 2.6% 4.0% Multiplex Pte Ltd Entertainment & Nov 10 Kopitiam4 Food Court Sep 07, Nov 07, Jun 08, 69,751 2.3% 2.4% Aug 08, Nov 08 & Feb 09 Carrefour Singapore Pte Ltd Supermarkets Nov 06 91,666 2.2% 3.2% Best Denki (S) Pte Ltd Electronics / Aug 06, Sep 06, 67,497 1.9% 2.3% Warehouse Feb 07 & Apr 07 NTUC Fairprice Supermarkets / Nov 07, Mar 08 & Apr 09 63,530 1.8% 2.2% Co-operative Ltd Electronics Wing Tai Holdings Limited Fashion / Feb 06, Sep 06, Mar 07, 13,844 1.4% 0.5% Food & Beverage May 07, Jun 07, Jul 07 , Sep 07, Dec 07, Apr 08 & May 08 McDonald’s Food & Beverage Feb 06, Oct 06, Nov 06, 17,642 1.3% 0.6% Restaurants Pte Ltd Jun 07, Nov 07, Sep 08 & Mar 09 Isetan (Singapore) Ltd Department Store Nov 07 49,084 1.3% 1.7%

Ten largest tenants by total Gross Rental Income 22.9% 30.7% Other tenants and vacant units 77.1% 69.3%

1 Some of the tenants above have signed more than one tenancy agreement and this has resulted in more than one tenancy expiry dates for such tenants. 2. Total gross rental income for the month of December 2005. 3. As at 31 December 2005. 4 Kopitiam Investment Pte Ltd, Kopitiam Pte Ltd and S28 Holdings Pte Ltd (which is a wholly owned subsidiary of Kopitiam Investment Pte Ltd). 82 > inspire PORTFOLIO LEASE EXPIRY PROFILE

34.4 32.5 30.4 27.5 LEASE EXPIRY PROFILE 22.0 The lease terms of our tenants are consistent with the market in Singapore, in that the lease term for 15.9 specialty tenants is typically three years and for anchor tenants from fi ve to seven years. The expiry profi le of CMT’s portfolio of malls is well spread out 6.4 6.0 5.2 with approximately 33 percent and 34 percent due 3.2 to expire in 2006 and 2007, respectively based on Net Lettable Area (NLA). Based on the committed 2006 2007 2008 2009 2010 leases as at 31 December 2005, over 82.0 percent 1 % of total NLA as at 31 December 2005 of the forecast total revenue for the fi nancial year ended 31 December 2006 has been locked in. % of total gross rental income for the month of December 2005

1 Based on the forecast, toegther with the accompanying assumptions, shown in the CMT Circular dated 18 Octoberr 2005.

LEASE EXPIRY FOR 2006 BY MALL

NET LETTABLE AREA GROSS RENTAL INCOME NO. OF LEASES SQ. FT. % OF TOTAL1 S$’000 % OF TOTAL2

Tampines Mall 29 42,815 13.3% 722 18.4% Junction 8 50 21,554 8.8% 498 16.6% Funan DigitaLife Mall 61 63,070 23.3% 488 27.2% IMM Building 367 330,198 37.1% 2,049 49.3% Plaza Singapura 91 253,453 51.3% 2,483 51.3% Bugis Junction 79 71,472 17.4% 949 24.7%

Others3 76 162,457 58.9% 660 52.5%

1. As percentage of total net lettable area as at 31 December 2005. 2. As percentage of total gross rental income for the month of December 2005. 3. Comprising Hougang Plaza Units, Sembawang Shopping Centre and Jurong Entertainment Centre.

WEIGHTED AVERAGE EXPIRY

WEIGHTED EXPIRY WEIGHTED EXPIRY (RENTAL INCOME) (NET LETTABLE SPACE AREA) YEARS YEARS

Tampines Mall 2.28 2.36 Junction 8 2.17 2.57 Funan DigitaLife Mall 2.20 2.58 IMM Building 1.15 1.10 Plaza Singapura 1.62 1.58 Bugis Junction 2.91 4.79 Others1 1.29 1.23 Portfolio 1.98 2.16

1 Comprising Hougang Plaza Units, Sembawang Shopping Centre and Jurong Entertainment Centre.

inspire > 83 IN review_operations & ﬁ nancial review

TRADE SECTOR ANALYSIS TRADE SECTOR ANALYSIS The Manager’s active leasing efforts and retail management By Net Lettable Area consciously aim to maintain a well-balanced trade mix in CMT’s malls (As at 31 December 2005) that is not overly reliant on any one particular segment of the trade sector. Food & Beverage (F&B) outlets/food courts continue to be the Food & Beverage/ 15.6% Food Court main contributor to gross rental income as well as the largest user Leisure and Entertainment/ 11.9% of space. The fashion trade is the second largest contributor to the Sports & Fitness gross rental income at 20.8 percent, while occupying only 8.2 percent Supermarkets 11.2% of the NLA. Educational/Services 11.2%

This is very much in line with market forces in Singapore where F&B Department Store 10.5% and fashion continue to drive retail sales. Warehouse 9.1% Electronics 8.6% INCREASED SHOPPER TRAFFIC Fashion 8.2% Both Tampines Mall and Junction 8 recorded in excess of 20 million Home Furnishings 8.1% shoppers in 2005. This was a record-breaking achievement for CMT Books/Gifts & Specialty 3.3% as none of our malls have previously reached these numbers. We /Hobbies/Toys will continue to improve the trade mix, organise interesting events Ofﬁ ce 2.3% and enhance the shopping ambience to further increase the shopper trafﬁ c to our malls.

ADVERTISING AND PROMOTIONS Many of our activities are organised across a number of the malls so as to achieve both synergy and cost efﬁ ciency. By Gross Rental Income (For the month of December 2005) At key festive periods such as Lunar New Year and Christmas, the malls use a single theme, and share promotional mechanics and Food & Beverage/ 22.8% communications. During the June and December school holidays, Food Court we arranged for popular cartoon characters such as Power Rangers, Wallace & Gromit, Thomas the Tank and Baby Looney Tunes to Fashion 20.8% appear at the different malls. Premiums bearing their pictures Educational/Services 16.1% were also produced as gift-with-purchases for our shoppers to take Leisure and Entertainment/ 7.6% home for their children. In addition, during the Mid-Autumn Festival, Sports & Fitness Mooncake Fairs were held in IMM, Junction 8 and Tampines Mall Electronics 7.3% with participation from over 30 hotels, restaurants, cake houses and Supermarkets 7.2% confectioneries. Home Furnishings 6.8%

Department Store 5.7% Activities for other special common occasions are targeted at the Books/Gifts & Specialty 3.3% shoppers in individual malls. In May 2005, for example, we hosted /Hobbies/Toys different competitions in commemoration of Mother’s Day: ‘Most Warehouse 1.6%

Beautiful Mum’ at Junction 8, ‘Most Beautiful Mum-to-be’ at Plaza Ofﬁ ce 0.8% Singapura, ‘Classic Mum’ at IMM, and ‘Mother-&-Child Lookalike’ at Tampines Mall. These pageants and contests drew more than 1,000 entries.

84 > inspire Power Rangers characters colouring contest Most beautiful Mum-to-be contest

Mooncake Fair

Thomas The Train Show

Photo taking at Astro Boy show inspire > 85 IN review_operations & ﬁ nancial review

TENANTS WITH STEP-UP RENT AND GROSS TURNOVER RENT

1 % OF TOTAL PORTFOLIO1 OF TENANTS NO. OF TENANTS IN PORTFOLIO

1000 100% 915

800 714 80% 73.8% 77.6% 711 689 71.5% 2 60.6% 600 60%

400 40%

200 20%

0 0% Tenants with Tenants Paying Tenants with Tenants Paying Step-Up Rent GTO Rent Step-Up Rent GTO Rent

1. Excluding Sembawang Shopping Centre which was acquired in June 2005, Hougang Plaza Units which were acquired in June and August 2005 and Jurong Entertainment Center which was acquired in October 05. as at 31 December 2005 2. Lower percentage due to the acquisition of Bugis Junction in October 2005. Only 8.3% of tenants in Bugis Junction are paying step-up rents as a majority as at 31 December 2004 of the tenants are on the gross turnover rental structure.

SUMMARY OF RENEWALS / NEW LEASES

FROM 1 JANUARY 2005 TO 31 DECEMBER 2005 (EXCLUDING NEWLY CREATED UNITS)

No. of Renewals/ Net Lettable Area Increase in Current Rental Rates vs.

Property New Leases Area (sq ft) % Total NLA Forecast Rental Rates1 Preceding Rental Rates

Tampines Mall 49 70,459 21.8% 5.9% 9.9% Junction 8 23 33,969 13.9% 5.5% 12.4% Funan DigitaLife Mall 36 53,511 19.8% 21.8% 21.2% IMM Building2 17 100,468 25.2% 2.0% 14.1% Plaza Singapura 64 142,856 28.9% 5.9% 11.6% CMT Portfolio for 20053 189 401,263 23.2% 6.8% 12.6%

1. Forecast rental rates for the period 1 January 2005 to 30 October 2005 is the basis for forecast shown in the CMT Circular dated 20 July 2004 and the forecast rental rates for the period 31 October 2005 to 31 December 2005 is the basis for forecast shown in the CMT Circular dated 18 October 2005. 2. Only renewal of retail units not budgeted to be affected by asset enhancement works were taken into account, 149 units originally budgeted to be affected by asset enhancement works at Level 2 and Level 3 were excluded from the analysis. 3. Excluding Hougang Plaza Units, Sembawang Shopping Centre, Bugis Junction and Jurong Entertainment which were acquired in 2005.

86 > inspire RISK MANAGEMENT LIQUIDITY RISK CMT and its associate actively monitor their cash fl ow position to OPERATIONAL RISK ensure that there are suffi cient liquid reserves in terms of cash and CMT and its associate have integrated risk management into the day- credit facilities to meet short-term obligations. to-day activities in all functions. These include planning and control systems, operational guidelines, IT systems and operational, reporting DERIVATIVE FINANCIAL RISK INSTRUMENT and monitoring procedures involving the executive management CMT obtains funding through Silver Maple. There is little or no committee and Board. derivative fi nancial instrument exposure level as the borrowings are secured via commercial mortgage-backed securitisation from Silver INVESTMENT RISK Maple. One of the main sources of growth for CMT and its associate is the acquisition of properties. The risk involved in such investment activities is managed through a rigorous set of investment criteria which includes accretion yield, internal rate of return, growth potential and sustainability, location and specifi cations.

INTEREST RATE RISK With the current global trend of rising interest rates, CMT and its associate proactively seek to minimise the level of interest rate risk by locking in most of our borrowings in fi xed interest rates. As at 31 December 2005, CMT and its associate have locked in 97.4 percent of CMT’s borrowings at fi xed rates and only the remaining 2.6 percent is at fl oating rates.

FOREIGN EXCHANGE RISK As the operations of CMT and its associate are currently based locally in Singapore, there is little or no foreign exchange exposure. CMT and its associate borrow in Singapore dollars from a special purpose vehicle, Silver Maple Investment Corporation Ltd (Silver Maple). Silver Maple issues foreign denominated notes and is able to obtain attractive spread by borrowing from the overseas markets.

CREDIT RISK Credit risk is the potential earnings volatility caused by tenants’ inability and/or unwillingness to fulﬁ l their contractual lease obligations. There is a stringent collection policy in place to ensure that credit risk is minimised, which is managed by the requirement of security deposits, usually in the form of cash or bankers’ guarantees of three months’ rent on average, and a vigilant monitoring system and procedures on debt collection.

inspire > 87 IN review_operations & ﬁ nancial review

FINANCIAL REVIEW CASH MANAGEMENT DEPT CAPITAL INFORMATION CMT and its associate take a proactive role in monitoring their cash and liquid reserves to ensure adequate funding is available AS AT 31 DEC 2005 for distribution to the Unitholders as well as to meet any short-term S$ MILLION liabilities.

DEBT MATURITY PROFILE1 FUNDING AND BORROWINGS Under a facility agreement between Silver Maple and CMT, Silver 4335 Maple granted CMT a total facility of S$1,187.0 million in the ﬁ nancial year ended 31 December 2005, an increase of S$483.0 million over 3353 S$704.0 million granted for the ﬁ nancial year ended 31 December 2004. This comprises a term loan of S$1,065.0 million and a revolving credit facility of S$122.0 million.

2 As at 31 December 2005, CMT has drawn down S$1,065.0 million of 172 the term loan and S$28.0 million of the revolving credit facility. 1254 Total borrowings of CMT stood at S$1,093.0 million as at 31 December

28 2005, an increase of S$433.0 million compared to S$660.0 million as 39.6% at 31 December 2004. The increased borrowings were mainly due to 15.7% 30.6% 11.5% 2.6% the debt fi nancing taken to part-fi nance/re-fi nance the acquisitions of Revolving 2007 2009 2010 2012 Bugis Junction, Hougang Plaza Units, Sembawang Shopping Centre Credit and Jurong Entertainment Centre. Fees and costs of S$3.8 million incurred in the S$433.0 million borrowing was amortised over the KEY STATISTICS tenor of the loan of seven years.

As a result, the gearing of CMT and its associate increased to 31.6 Borrowings to Total Assets 31.6% percent at 31 December 2005 from 28.5 percent as at 31 December 2004.

Borrowings to Total Assets 6.0 times Average cost of borrowing for the ﬁ nancial year ended 31 December 2005 was 3.0 percent per annum.

Average Cost of Debt 3.0% CASH FLOWS AND LIQUIDITY Operating cashfl ow improved for the fi nancial year ended 31 December 2005 by S$152.5 million. This is an increase of S$35.6 million over the Debt Rating “ AAA” operating cashfl ow of S$116.9 million in the preceding fi nancial year. The increase was mainly due to the increased full-year contribution from Plaza Singapura.

1 Based on Notes’ maturity dates. 2 Five year term loan from 26 February 2002. OPERATING ACTIVITIES 3 Five year term loan from 2 August 2004 4 Seven year term loan from 26 June 2003. CMT and its associate demonstrated their strength in initiating pro- 5 Seven year term loan from 31 October 2005. active asset management and leasing strategies, innovative asset enhancement initiatives and yield accretive acquisitions, which resulted in the remarkable improvement of 34.9 percent to the net property income for the ﬁ nancial year ended 31 December 2005.

88 > inspire INVESTING ACTIVITIES CMT and its associate continued with the acquisition strategy and ACCOUNTING POLICIES increased the number of properties in the portfolio from fi ve to nine The fi nancial statements have been prepared in accordance with the with the acquisitions of Sembawang Shopping Centre, Hougang Statement of Recommended Accounting Practice (RAP) 7 ‘Reporting Plaza Units, Jurong Entertainment Centre and Bugis Junction. With Framework for Unit Trusts’ issued by the Institute of Certifi ed Public the new acquisitions and asset enhancement initiatives, CMT and its Accountants of Singapore, and the applicable requirements of the associate were able to improve on their performance over 2004. Code on Collective Investment Schemes (the CIS Code) issued by the Monetary Authority of Singapore (MAS) and the provisions of the FINANCING ACTIVITIES Trust Deed. CMT and its associate constantly monitor the cash position and level of borrowings with the view of enhancing value by locking-in sizable In 2005, CMT adopted the revised RAP 7 ‘Reporting Framework for borrowings at fi xed low interest rates with medium-term tenures. Unit Trusts’ issued in May 2005 and the effects of adopting this revised RAP in 2005 are: With the acquisitions of the four new properties in the fi nancial year ended 31 December 2005, borrowings of S$433 million were raised • The adoption of principles in FRS 28 (revised) ‘Investment in in October 2005 through Silver Maple to: Associates’ resulted in the presentation of the fi nancial position, results, movements in Unitholders’ funds and cash fl ows of CMT (1) Part-fi nance the acquisition of Bugis Junction and Jurong and its associate in the fi nancial statements in addition to those Entertainment Centre; and of CMT. (2) Part re-fi nance the short-term borrowing of S$129.8 million that was taken in the second quarter of 2005 in the acquisitions of • The adoption of principles of FRS 39 ‘Financial Instruments: Sembawang Shopping Centre and Hougang Plaza units. Recognition and Measurement’ resulted in CMT and its associate measuring our derivative fi nancial instruments as In addition, there is suffi cient short-term revolving credit facility assets or liabilities at fair values. Previously, derivative fi nancial available to meet any short-term liquid requirements. instruments were not recorded on the balance sheet. Where a derivative or non-derivative fi nancial instrument is an effective CASH AND CASH EQUIVALENTS hedge in a cash fl ow hedge relationship, the change in fair value As at 31 December 2005, the value of cash and cash equivalents stood of the hedging instrument relating to the effective portion is at S$39.1 million, compared with S$47.2 million as at 31 December recorded in equity. The effect of the adoption of FRS 39 on the 2004, mainly due to the change in the distribution policy to a quarterly results of CMT and its associate for the fi nancial year ended 31 basis in the fi nancial year ended 31 December 2005 from a half-yearly December 2005 is not signifi cant. basis in the fi nancial year ended 31 December 2004.

inspire > 89 INcreasing Dominance We have nine retail malls: Well-situated retail malls. We have leveraged on their close proximity to Mass Rapid Transit and bus routes, large local customer bases and targeted positioning to make them a desirable location for retailers and popular destination for shoppers. And, we have developed a wide network of stable tenant relationships.

90 > inspire inspire > 91 INcreasing dominance_portfolio at a glance

FUNAN TAMPINES DIGITALIFE PROPERTY MALL JUNCTION 8 MALL

ADDRESS 4 Tampines Central 5 9 Bishan Place 109 North Singapore 529510 Singapore 579837 Bridge Road Singapore 179097

NET LETTABLE 322,919 245,191 270,412 AREA (SQ FT) (as at 31 December 2005)

NUMBER OF TENANTS 158 172 183 (as at 31 December 2005)

CAR PARK LOTS 636 305 336 (as at 31 December 2005)

508 804 805 NLA PER CAR PARK LOT (SQ FT) (as at 31 December 2005)

Leasehold tenure of Leasehold tenure of Leasehold tenure of TITLE 99 years with effect 99 years with effect 99 years with effect from 1 September from 1 September from 12 December 1992 1991 1979

S$409.0 million S$295.0 million S$191.0 million PURCHASE PRICE

MARKET VALUATION S$633.0 million S$473.0 million S$247.5 million (as at 1 December 2005)

OCCUPANCY RATE (as at 31 December 2005) 100.0% 100.0% 99.4%

SHOPPER TRAFFIC 20.5 million 21.8 million 9.6 million FOR 2005

MAJOR TENANTS Isetan, Seiyu, Challenger, NTUC Fairprice, Golden NTUC Fairprice, Golden Food Junction, Village, Village, Royal Sporting House, Courts and Best Denki and South Asia Computer Yamaha Music Food Junction and Harvey Norman

9292 >> ininspirespire HOUGANG SEMBAWANG JURONG IMM PLAZA BUGIS PLAZA SHOPPING ENTERTAINMENT BUILDING SINGAPURA JUNCTION UNITS CENTRE CENTRE

2 Jurong East 68 Orchard Road 200 Victoria Street, 1189 Upper Serangoon 604 Sembawang Road, 2 Jurong East Central 1, Street 21, Singapore Singapore 238839 Singapore 188021 Road, Singapore Singapore Singapore 609731 609601 534785 758459

Retail: 398,087 494,134 410,619 67,813 97,130 110,795 Non-Retail: 491,680

Retail: 250 198 218 6 69 32 Non-Retail: 300

1 1,301 (cars) 700 6481 154 Multi-storey carpark: 240 220 111 (lorries/heavy External carpark2 : 239 vehicles) Total : 479

306 706 634 440 203 504

Leasehold tenure of Freehold Leasehold tenure of Leasehold tenure of Leasehold tenure of Leasehold tenure of 30 + 30 years with 99 years with effect 99 years with effect 999 years with effect 99 years with effect effect from 23 from 10 September from 1 March 1991 from 26 March 1885 from 1 March 1991 January 1989 1990

S$247.4 million S$710.0 million S$580.8 million S$43.8million S$78.0 million S$68.0 million

S$400.0 million S$803.0 million S$615.0 million S$44.3 million S$79.6 million S$69.6 million

Retail: 99.0% 100.0% 100.0% 100.0% 100.0% 99.5% Non-Retail: 63.2%

15.8 million 17.0 million NA* NA* NA* NA*

Giant, Carrefour, Seiyu, Food Junction Jack’s Place, Giant, Kopitiam, Taste Kopitam, K Box, Shaw Daiso, Golden Village, Cold Storage, Shaw K-Box, Kopitiam, of Thailand, Satay Club Theatres, Fuji Ice Palace Best Denki, Spotlight , Theatres, Virtual Novena Furnishing and Sakae Sushi and Morris Allen Kopitiam and Yamaha Music and Land and G-value Bagus Best Denki

1 The carpark lots are owned by the management corporation. * not available as the asset 2 This refers to the external carpark, under a temporary occupation licence, located next to Sembawang Shopping Centre. was only acquired in 2005.

ininspire >> 9393 INcreasing dominance_strategically located

MAP OF SINGAPORE Legend

East West Line EW

North South Line NS

North East Line NE

Circle Line CCL

MRT Station

Existing CMT Mall

Newly Acquired Malls N in 2005

SEMBAWANG YISHUN STATION STATION

SEMBAWANG JUNCTION 8 SHOPPING BISHAN CENTRE STATION JURONG HOUGANG ENTERTAINMENT PLAZA CENTRE IMM BUILDING TAMPINES MALL JURONG EAST HOUGANG TAMPINES E W STATION STATION STATION

PLAZA SINGAPURA DHOBY GHAUT STATION BUGIS JUNCTION BUGIS STATION CITY HALL STATION FUNAN DIGITALIFE MALL S

9494 >> ininspirespire Geographical Location CapitaMall Trust’s (CMT) portfolio of nine malls is well spread out across Singapore and these malls are well supported by good population catchment areas. In addition, most of the malls are located either beside or very near to Mass Rapid Transit stations and bus interchanges. Tampines Mall is located in the east of Singapore, Junction 8 in the central/north, Plaza Singapura, Funan DigitaLife Mall and Bugis Junction in the central area, Hougang Plaza Units in the north-east, Sembawang Shopping Centre in the north, and IMM Building and Jurong Entertainment Centre in the west.

With this representation across Singapore, CMT is able to capture all the various segments of the market as well as service the needs of the local population.

inspire > 95 INviting_experiences_tampines mall

Tampines Mall, located in the eastern part of Singapore, is one of Singapore’s leading suburban malls. It is situated in the ﬁ rst of the four regional centres planned in Singapore and strategically located next to the Tampines Mass Rapid Transit (MRT) station and the Tampines bus interchange. Tampines Mall offers a varied and exciting mix of shopping, dining and entertainment under one roof for consumers residing in the high-density residential area of Tampines regional centre and in the eastern and north-eastern regions of Singapore.

The prime suburban mall is well positioned for the middle-income segment of the retail market, and has two basement levels of car park space and a tenant base of more than 150 on ﬁ ve retail levels, including a basement level. With a strong main catchment area of over 766,0001 residents, accounting for approximately 71.0 percent of its customer base, Tampines Mall has an average of over 56,000 shoppers every day.

1 Urbis JHD Singapore Retail Review dated October 2005.

96 > inspire The objective for Tampines Mall is to continually seek to optimise its financial performance and strengthen its market positioning as the leading suburban mall in the east and north-eastern regions, through constantly enhancing the retail shopping experience of its visitors.

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TAMPINES MALL LEASE EXPIRY PROFILE ASSET ENHANCEMENT INITIATIVES A new marketplace was created at Basement 1 in the last quarter of 2005 to offer a wider variety of food for both dining-in and take-away.

38.4% The marketplace has 18 food kiosks cum eateries selling popular local and Asian food. An aquarium kiosk was also created near the

31.2% 32.1% market place and escalator area as a focal point for shoppers to eat 29.2% and rest.

In line with the enhanced retail mix, a new logo was created for Tampines Mall. In addition, the mall was given an external facelift 18.4% with a new refreshing colour and signage. All the directories and 13.3% directional signs will be updated with the new designs within the 11.0% 11.2% ﬁ rst half of 2006. All the lift lobbies were also ﬁ tted with plasma 6.6% 6.0% televisions to entertain waiting shoppers.

2006 2007 2008 2009 2010

% of total gross rental income for the month of December 2005 % of total NLA as at 31 December 2005

TAMPINES MALL PROPERTY INFORMATION

NET LETTABLE AREA 322,919 sq. ft. (as at 31 December 2005) NUMBER OF TENANTS 158 (as at 31 December 2005) CAR PARK LOTS 636 (as at 31 December 2005) TITLE Leasehold tenure of 99 years with effect from 1 September 1992 PURCHASE PRICE S$409.0 million

MARKET VALUATION S$633.0 million (as at 1 December 2005) OCCUPANCY RATE 100.0% (as at 31 December 2005) SHOPPER TRAFFIC 20.5 million FOR 2005

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TENANCY MIX To strengthen and complement the retail mix at the mall, the Beauty Hub on Level 3 was completed, providing one-stop beauty and wellness services for both men and women. The Beauty Hub contributed to an incremental rental revenue of over S$0.3 million per annum on a stabilised basis.

October saw the opening of the new Basement 1 food kiosks which include household names such as Ho Kee Pau and Lee Wee & Brothers’ Foodstuff with their very ﬁ rst outlets in a shopping mall environment. On a stabilised basis, this is estimated to achieve an incremental rental revenue of over S$0.4 million.

PROMOTIONAL AND MARKETING ACTIVITIES In addition to the usual festive and school holiday programmes, 2005 saw a series of thematic sales-driven promotions and events at Tampines Mall.

In April ‘Health and Beauty @ TM’, organised with key tenants such as Guardian, Eu Yan Sang and The Body Shop, offered free derma skin analysis, make-overs, cardio blood pressure tests and health screening to shoppers. The event culminated in Body Shop’s ﬁ rst-ever product launch in a suburban mall, involving beauty demonstrations and a radio show with celebrity DJs like Carrie Chong for Spa Wisdom.

The enormous success of the April event led to roadshows with other established brands including SKII and Shisheido. The latter organised a ‘Women with Conﬁ dence Fair’ exclusively at Tampines Mall which met with an overwhelming response from over 200 women in a recruitment drive of under two weeks. Responding to shoppers’ feedback and tenants’ requests, a second event was held on the Health and Beauty theme in August 2005 featuring Jean Yip’s grand opening of its beauty hub, a new product launch for Bio Essence and Watsons’ introduction of pharmacist services.

At ‘Colours of Food’, held in July 2005 in conjunction with the Singapore Food Festival, 12 booths were segregated into colour zones by their food type. This event generated free publicity in major newspapers and on Channel NewsAsia, and increased shopper trafﬁ c by approximately 19 percent or around 190,000 shoppers.

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TRADE SECTOR ANALYSIS TRADE SECTOR ANALYSIS BY BY GROSS RENTAL INCOME NET LETTABLE AREA (FOR THE MONTH OF DECEMBER 2005) (AS AT 31 DECEMBER 2005)

Food & Beverage/Food Court 29.0% Food & Beverage/Food Court 23.6%

Fashion 25.8% Department Store 15.2%

Educational/Services 14.9% Leisure and Entertainment/ Sports & Fitness 13.3% Department Store 7.5% Educational/Services 12.4%

Leisure and Entertainment/ Sports & Fitness 7.3% Supermarkets 11.0%

Supermarkets 6.0% Fashion 10.7% Books/Gifts & Specialty/ Books/Gifts & Specialty/ TAMPINES MALL CENTRE Hobbies/Toys 8.0% Hobbies/Toys 5.0% MANAGEMENT TEAM (L to R): Fong Lie Ling Home Furnishings 5.7% Home Furnishings 4.3% (Operations Manager from 12 December 2005), Jaclyn Electronics 0.2% Electronics 0.1% Chan (Leasing Manager), Looi Keng (Centre Manager), June Ang (Marcom Manager), Danny Chan (Operations Manager to 11 December 2005)

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INviting_experiences_junction 8

104 > inspire The objective for Junction 8 is to optimise its financial performance and strengthen its market positioning as the leading suburban mall in the central region of Singapore.

inspire > 105 106 > inspire INviting_experiences_junction 8

Junction 8 is located in the high-density residential area of Bishan and is well-served by both Bishan Mass Rapid Transit (MRT) and the JUNCTION 8 LEASE EXPIRY PROFILE Bishan bus interchange. This prime suburban mall incorporates two basement car park levels and ﬁ ve retail storeys. The mall has more than 800,0001 people residing in its main catchment area.

41.1% Positioned for the middle-income and family-oriented segments of 33.5% the retail market, the mall targets residents in surrounding housing estates, ofﬁ ce workers within the vicinity and students from nearby 23.9% schools. However, its excellent accessibility by public transport 19.1%19.4% extends its reach beyond this. With the completion of its asset 16.9% 15.8% 14.4% enhancement works, the new Rafﬂ es Junior College and the planned 8.8% National Library Board in the vicinity, Junction 8 is poised to capture 7.1% even more shoppers and anchor its position as a one-stop shopping, dining and entertainment destination.

2006 2007 2008 2009 2010 1. Urbis JHD Singapore Retail Review report dated October 2005.

% of total gross rental income for the month of December 2005 % of total NLA as at 31 December 2005

JUNCTION 8 PROPERTY INFORMATION

NET LETTABLE AREA 245,191sq. ft. (as at 31 December 2005) NUMBER OF TENANTS 172 (as at 31 December 2005) CAR PARK LOTS 305 (as at 31 December 2005) TITLE Leasehold tenure of 99 years with effect from 1 September 1991

PURCHASE PRICE S$295.0 million

MARKET VALUATION S$473.0 million (as at 1 December 2005) OCCUPANCY RATE 100.0% (as at 31 December 2005) SHOPPER TRAFFIC 21.8 million FOR 2005

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dining

entertainment INviting_experiences_junction 8

TRADE SECTOR ANALYSIS TRADE SECTOR ANALYSIS BY BY GROSS RENTAL INCOME NET LETTABLE AREA ASSET ENHANCEMENT INITIATIVES (FOR THE MONTH OF DECEMBER 2005) (AS AT 31 DECEMBER 2005) A major asset enhancement programme was successfully completed at Junction 8 last year. The Level 3 open plaza was renovated to provide a new, exciting and landscaped venue for events, concerts and lifestyle activities which helps to channel shoppers’ trafﬁ c to the upper ﬂ oors of the mall. The plaza has a back projection screen which can run movie shows and football matches for families and friends. It also boasts a modern Fashion 27.0% Food & Beverage/Food Court 20.6% playground which provides a fun area for Food & Beverage/Food Court 26.4% Leisure and Entertainment children. /Sports & Fitness 14.1% Educational/Services 16.7% Fashion 13.9% Leisure and Entertainment /Sports & Fitness 8.3% Educational/Services 13.4%

Electronics 6.2% Department Store 12.8%

Department Store 5.9% Supermarkets 10.1%

Supermarkets 5.7% Electronics 9.6%

Books/Gifts & Specialty Books/Gifts & Specialty /Hobbies/Toys 3.0% /Hobbies/Toys 4.8%

Home Furnishings 0.8% Home Furnishings 0.7% JUNCTION 8 CENTRE MANAGEMENT TEAM (L to R): Christopher Ang (Marcom Manager), Lisa Wood (Centre Manager), Lena Thean (Leasing Manager), Chee Hiang Chuan (Operations Manager)

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TENANCY MIX 2005 brought a number of new retailing concepts to Junction 8. These included Double Index and Dano in ladies’ fashion, new jewellers Citigems and Soo Kee Jewellery, Primarera on the main walkway and Haagen Dazs on Level 3. In addition, two brand new kiosks, 2.ft Orthotics on Level 3 and Bargain City, opened in the mall’s youth zone.

A number of existing retailers also refreshed their store designs, resulting in a new look for Bistro Delifrance, Bysi, Charles and Keith, Silvera, Goldheart, AR Money Changer and Ero Lingerie.

PROMOTIONAL AND MARKETING ACTIVITIES Aggressive thematic promotions and artistes’ appearances increased trafﬁ c in 2005 to over 21.0 million, with an average of 1.75 million shoppers per month. The open plaza at Level 3 was re-launched as ‘Top of the 8’, after landscaping and the addition of a playground, with artistes’ appearances and tenants’ party. ‘Community Sunday’ also made a comeback for a three-month period as part of the launch campaign with all 35 booths at the ‘Entrepreneur Mark8t’ ﬁ lled with students and budding entrepreneurs.

Other events included the ‘Most Beautiful Mum’ ﬁ nals which attracted 35.0 percent more shoppers than in the previous year, and a new programme called ‘Wacky Waggy Fashion Fun’ in which owners and their dogs promoted the latest fashion during the Great Singapore Sale.

110 > inspire At Christmas, Junction 8 achieved two ‘Firsts’: we were the fi rst to wrap The Straits Times in a Christmas gift-paper-cum-2006- calendar, which was well received by shoppers; and we were the fi rst to collaborate with SBS Transit to extend the operating hours of the buses serving Junction 8 to 2.00 am on 18 December 2005. The latter resulted in the highest-ever traffi c for a single event, with over 100,000 shoppers, a 45.0 percent increase in traffi c. Tenants enjoyed superb increases in sales ranging from 20.0 to 150.0 percent for some.

inspire > 111 INviting_experiences_funan digitalife mall

The objective for Funan DigitaLife Mall is to continue to drive shopper traffic and sales by providing customers with a complete digital and lifestyle offering in a quality shopping environment and staging quality promotions and events so as to position the mall as the premier one-stop destination for all IT and digital needs.

112 > inspire inspire > 113 INviting_experiences_funan digitalife mall

Funan DigitaLife Mall enjoys an ideal location within the Central Business District, close to City Hall Mass Rapid Transit (MRT) station, FUNAN DIGITALIFE MALL LEASE EXPIRY PROFILE Boat Quay and national landmarks such as the new Supreme Court, the Parliament House and the Padang. This, together with its unique 27.2% mix of reputable retailers, makes the mall one of Singapore’s premier 25.7% destinations for Information Technology (IT) and digital products, 23.3% 22.0% 22.3% attracting shoppers from all over Singapore. Tourists are also 19.6% becoming an important part of the mall’s customer base. 17.3% 16.2%

12.5% 12.6% The mall has six retail levels with a food court and supermarket located at Basement 1 and three basement car park levels offering easy access to the mall via escalators or lifts. Given its broad range and reputation for genuine products and quality service, Funan DigitaLife Mall attracts many professionals, managers, executives and business people, along with daily shoppers enjoying the diverse F&B options. The mall, formerly known as Funan The IT Mall, embarked on a 2006 2007 2008 2009 2010 major rebranding exercise in May 2005 repositioning itself as Funan DigitaLife Mall, a hub for digital and lifestyle products. % of total gross rental income for the month of December 2005 % of total NLA as at 31 December 2005

FUNAN DIGITALIFE MALL PROPERTY INFORMATION

NET LETTABLE AREA 270,412 sq. ft. (as at 31 December 2005) NUMBER OF TENANTS 183 (as at 31 December 2005) CAR PARK LOTS 336 (as at 31 December 2005) TITLE Leasehold tenure of 99 years with effect from 12 December 1979

PURCHASE PRICE S$191.0 million

MARKET VALUATION S$247.5 million (as at 1 December 2005) OCCUPANCY RATE 99.4% (as at 31 December 2005) SHOPPER TRAFFIC FOR 2005 9.6 million

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TRADE SECTOR ANALYSIS TRADE SECTOR ANALYSIS BY BY GROSS RENTAL INCOME NET LETTABLE AREA (FOR THE MONTH OF DECEMBER 2005) (AS AT 31 DECEMBER 2005)

Electronics 54.1% Electronics 56.0%

Educational/Services 16.4% Food & Beverage/Food Court 14.5%

Food & Beverage/Food Court 14.9% Educational/Services 14.0%

Books/Gifts & Specialty/ Leisure and Entertainment/ Hobbies/Toys 4.3% Sports & Fitness 4.5%

Leisure and Entertainment/ Books/Gifts & Specialty/ Sports & Fitness 4.1% Hobbies/Toys 4.3%

Fashion 2.6% Supermarkets 3.1%

Supermarkets 1.8% Home Furnishings 2.4%

Home Furnishings 1.8% Fashion 1.2%

FUNAN DIGITALIFE MALL CENTRE MANAGEMENT TEAM (L to R): David Foong (Centre Manager), Roy Sim (Leasing Senior Executive), Roy Lai (Operations Manager) , Julie Tan (Marcom Manager)

116 > inspire 116 > inspire ASSET ENHANCEMENT INITIATIVES In June 2005 the new ‘Inbox5’ thematic zone was launched, offering a wide range of digital items such as mobile phones, MP3 players and gaming products to younger customers and tourists.

Considerable enhancements made to vertical transport and accessibility included new escalators to improve direct access from the car park levels to the mall at Level 1. The air-conditioning at the common mall area is currently being upgraded to improve overall customer comfort levels. This was coupled with the replacement of the atrium skylight to allow better light penetration but less heat transfer. The restrooms throughout the mall also underwent a major upgrade and the new, fully air-conditioned restrooms now include baby care rooms.

TENANCY MIX In line with Funan’s rebranding exercise, new zones and trends were added into the mall to introduce even more IT retailers. New concept showrooms like O2 and Samsung joined the list of existing brands that includes Apple Centre, Canon, Fujitsu, IBM & HP, and new specialised DIY IT shops such as Fuwell & Laser Distributor were introduced to cater to a growing number of younger and DIY IT shoppers.

A thematic zone, ‘Inbox 5’, was created on Level 5, comprising several open-concept shoplets and kiosks with a focus on digital and electronic devices.

To complete the one-stop shopping experience for digital lifestyle shoppers, specialised lifestyle retailers such as OSIM International and Ogawa Health-Care opened in the mall.

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PROMOTIONAL AND MARKETING ACTIVITIES Our new thematic concept zone, Inbox5, opened on 18 June 2005, drawing in the crowds and raising awareness of the mall through media coverage.

Throughout the year, there were many exciting events including ‘World Cyber Games Road Show’, ‘Robo GP’ by Temasek Polytechnic, ‘Techno Quest’ by Nanyang Technological University and ‘Gaming Challenge’. We also collaborated with The New Paper and Straits Times Classiﬁ ed to hold the ‘After 5 Pool League’ and ‘Classiﬁ ed Waiter Race’ respectively.

Our sales promotions such as the ‘Weekly Specials’ Money Back Promotion’ as well as the ‘3-hour Mega Sale’ drew great response from shoppers.

inspire > 119 INviting_experiences_imm building

120 > inspire The objective for IMM Building (IMM) is to optimise its financial performance and strengthen its market positioning as the leading suburban mall in the west and north- west regions of Singapore through continuously enhancing the retail experience of shoppers and visitors.

IMM is located in the high-density residential area of Jurong East and in close proximity to major ofﬁ ce and industrial developments like the International Business Park. The mall is also just 5 minutes’ walk away from Jurong East Mass Rapid Transit (MRT) station and bus interchange. It provides a valuable diversiﬁ cation to other properties in CMT’s portfolio which are located in the central, northern and eastern parts of Singapore.

This unique, suburban, fi ve-storey mixed development houses retail shops, offi ces and warehouses under one roof. It has an open-air car park on the ground fl oor, fi ve levels of covered car park and an open-air car park at roof level. Currently, shoppers enjoy free car parking as well as a free shuttle bus service plying between the mall and Jurong East, Clementi and Boon Lay MRT stations. IMM is positioned as a suburban family mall targeting families and consumers residing and working in the western region of Singapore.

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IMM BUILDING LEASE EXPIRY PROFILE

49.3% ASSET ENHANCEMENT INITIATIVES

45.3% Four glass kiosks were added next to the travellators at Level 1. An overhaul of the existing restrooms is underway and the upgrading 38.8% 37.1% works for the restrooms located next to Giant Hypermarket have already been completed. In addition, the multi-storey car park has been refurbished with a new coat of paint and new light ﬁ ttings, giving it a brighter look. The car park link-ways to the lift lobbies on all levels have also been upgraded.

Plans to construct an extension block and a major revamp of the 5.2% 3.1% entire mall is underway and the asset enhancement work is expected 0.2% 0.1% 0.0% 0.0% to commence in early 2006.

2006 2007 2008 2009 2010

% of total gross rental income for the month of December 2005 % of total NLA as at 31 December 2005

IMM BUILDING PROPERTY INFORMATION

NET LETTABLE AREA Retail: 398,087 sq. ft. (as at 31 December 2005) Non Retail: 491,680 sq. ft. NUMBER OF TENANTS Retail: 250 (as at 31 December 2005) Non- Retail: 300 CAR PARK LOTS 1,301 (Cars), 111 (Lorries (as at 31 December 2005) & Heavy Vehicles) TITLE Leasehold tenure of 30 + 30 years with effect from 23 January 1989

PURCHASE PRICE S$247.4 million

MARKET VALUATION S$400.0 million (as at 1 December 2005) OCCUPANCY RATE 99.0% (Retail only), (as at 31 December 2005) 63.2% (Non-Retail) SHOPPER TRAFFIC 15.8 million FOR 2005

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TENANCY MIX IMM has a wide tenant mix covering furniture, interior design, home furnishings and renovation, bridal, lifestyle, fashion, services and food. Major anchor tenants include Giant Hypermarket, Best Denki, Daiso discount store, Kopitiam and Bagus.

New tenants like Vincent Watch, G-Force Network, Elementz and Beauty Language were brought in when the four new glass kiosks were introduced in May 2005 to improve the trade mix. The food mall on Level 3 was replaced by a Hong Kong style café offering savoury Hong Kong cuisine and dim sum.

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TRADE SECTOR ANALYSIS TRADE SECTOR ANALYSIS BY BY GROSS RENTAL INCOME NET LETTABLE AREA (FOR THE MONTH OF DECEMBER 2005) (AS AT 31 DECEMBER 2005)

Home Furnishings 22.4% Warehouse 35.1%

Food & Beverage/Food Court 18.2% Home Furnishings 16.6%

Educational/Services 14.0% Supermarkets 12.8%

Fashion 12.4% Ofﬁ ce 9.0%

Supermarkets 10.9% Food & Beverage/Food Court 8.9%

Warehouse 8.6% Educational/Services 7.8%

Electronics 5.7% Electronics 4.2%

Ofﬁ ce 4.2% Fashion 3.9%

Books/Gifts & Specialty Books/Gifts & Specialty /Hobbies/Toys 1.9% /Hobbies/Toys 1.2%

Leisure and Entertainment Leisure and Entertainment /Sports & Fitness 1.7% /Sports & Fitness 0.5% IMM BUILDING CENTRE MANAGEMENT TEAM (L to R): Danzel Foo (Marcom Manager), Mustafa Bin Abdul Rahim (Operations Manager), Callie Yah (Centre Manager), Eugenie Yap (Leasing Manager), Jeffrey Teo (Leasing Manger)

126 > inspire PROMOTIONAL AND MARKETING ACTIVITIES In addition to many shows and promotions catering for the residents and offi ce workers in our main catchment area, IMM also organised a few niche direct advertising promotions with tenant participation which resulted in an increase in shopper traffi c. Iconic events, such as the annual 3-hour sale, Mother’s Day, anniversary promotions and festive activities and stage shows, achieved an average 15 percent increase in traffi c and tripled the sales turnovers for some tenants.

In 2005, we also injected new excitement into the shopping experience with thematic events like the Thailand Trade & Cultural Fair, KK Hospital ‘Best Breastfed Baby’ contest and baby fair and interior design and home furnishing promotions which attracted new shoppers from other parts of Singapore.

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Plaza Singapura is one of the largest malls along the Orchard Road shopping belt. This prime freehold property is directly linked at Basement 2 to the Dhoby Ghaut Mass Rapid Transit (MRT) station, which is the interchange between the North-South MRT Line and the North-East MRT Line. The Circle Line, currently under construction, will also be connected to this station. Additionally, Plaza Singapura is in close proximity to the Civic Centre where developments such as the Singapore Management University, Main National Library, National Museum and a new entertainment complex are located.

Plaza Singapura has nine levels (including two basements) and accommodates a hypermarket, a cineplex, two department stores and a variety of retail and Food and Beverage outlets. In addition, it has a multi-storey car park which is easily accessed at every level from Level 2 to Level 7. Its broad-based market positioning as well as a strong focus on basic consumer goods and services differentiate it from other major malls along Orchard Road which tend to have a greater focus on non-essential and higher-end goods and services.

128 > inspire The objective for Plaza Singapura is to optimise its financial performance and strengthen its market positioning as a one- stop shopping, dining and entertainment mall targeting a wide cross-section of the population, including families, working adults and youths.

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ASSET ENHANCEMENT INITIATIVES In 2005, among the major asset enhancement works completed were the subdivision of retail space on Level 6 to cater to F&B and specialty tenants and an increase in net lettable area for retail use from the PLAZA SINGAPURA LEASE EXPIRY PROFILE conversion of non-lettable air-handling unit rooms and relocation of the ﬁ re command centre. Improvement works to the air-conditioning in the restrooms and ventilation of the front plaza were also carried 51.3% 51.3% out.

Asset enhancement plans for 2006 will focus on further optimising 34.6% 34.2% the use of space in the mall, including the conversion of more air- handling unit rooms to retail use. Other plans being evaluated are the enhancement of Basement 2 with the possible introduction of a food- cum-marketplace concept, as well as the re-alignment of corridors at Levels 3 to 4. 7.4% 6.7% 9.6% 4.4% 0.0% 0.0%

2006 2007 2008 2009 2010

% of total gross rental income for the month of December 205 % of total NLA as at 31 December 2005

PLAZA SINGAPURA PROPERTY INFORMATION

NET LETTABLE AREA 494,134 sq. ft. (as at 31 December 2005) NUMBER OF TENANTS 198 (as at 31 December 2005) CAR PARK LOTS 700 (as at 31 December 2005) TITLE Freehold

PURCHASE PRICE S$710.0 million

MARKET VALUATION S$803.0 million (as at 1 December 2005) OCCUPANCY RATE 100.0% (as at 31 December 2005) SHOPPER TRAFFIC 17.0 million FOR 2005

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TENANCY MIX New tenants, such as Nike, Flash & Splash, ebase and I.P. Zone, were introduced to further reinforce the positioning for Basement 1, which is primarily targeted at youth fashion. Amalgamation of some of the shop units on this ﬂ oor was also carried out to extend the shopfront outwards and enhance shop visibility.

To streamline the fl ow of shopper traffi c through the mall, a newly reconfi gured unit was created for Starhub on Basement 2, focusing on retail of telecommunication equipment and related services.

PROMOTIONAL AND MARKETING ACTIVITIES A wide variety of events and promotions were organised for the mall throughout the year to reinforce its positioning as a one-stop shopping and lifestyle destination for all segments of the population.

Character shows and meet-and-greet sessions, such as Wallace & Gromit, Baby Looney Tunes, Astro Boy and Sponge Bob Square Pants, proved to be highly popular with families and young children. The mall also organised events such as ‘New Urban Male Contest’, ‘ST Urban 1st Anniversary Makeover Challenge’ and ‘The Legend of Zorro Fencing Duel’ to cater for working professionals and students.

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TRADE SECTOR ANALYSIS TRADE SECTOR ANALYSIS BY BY GROSS RENTAL INCOME NET LETTABLE AREA (FOR THE MONTH OF DECEMBER 2005) (AS AT 31 DECEMBER 2005)

Fashion 25.2% Supermarkets 18.6%

Educational/Services 21.3% Educational/Services 16.9%

Food & Beverage/ Leisure and Entertainment/ Food Court 17.7% Sports & Fitness 13.9%

Supermarkets 10.4% Food & Beverage/ Food Court 12.9% Leisure and Entertainment/ Sports & Fitness 8.8% Fashion 12.6%

Home Furnishings 6.6% Home Furnishings 10.8%

Electronics 5.1% Electronics 6.1%

Books / Gifts & Specialty/ Department Store 5.0% Hobbies/Toys 3.3% Books / Gifts & Specialty/ Department Store 1.6% Hobbies/Toys 3.2%

PLAZA SINGAPURA CENTRE MANAGEMENT TEAM (L to R): Teresa Teow (Centre Manager), Wong Yeap Wai (Operations Senior Executive), Lim Kim Loon (Leasing Manager), Isabel Kwek (Marcom Manager)

134 > ininspire shoppingentertainment friend musicfood INviting_experiences_bugis junction

136 > inspire The objective for Bugis Junction is to optimise its financial performance and strengthen its market positioning as the leading lifestyle mall, focusing on fashion, dining, entertainment and shopping experience and targeting young adults and Professionals, Managers, Executives and Businessmen (PMEBs).

inspire > 137 138 > inspire INviting_experiences_bugis junction

Located in the heart of Singapore’s civil and cultural district, Positioned as a modern one-stop shopping destination for young Bugis Junction is a popular shopping centre set within a leading adults and PMEBs, Bugis Junction houses 218 specialty shops spread redevelopment project. The mall is conveniently located with direct over one basement and four storeys. With its strategic location at the access to the Bugis Mass Rapid Transit (MRT) train station and is centre of Singapore’s Arts, Culture, Learning and Entertainment Hub, well served by major bus routes. Bugis Junction is expected to beneﬁ t from the increased customer trafﬁ c and buzz created in the vicinity by the opening of the main National Library, the new Singapore Management University city campus and the scheduled opening of LASALLE-SIA College of the Arts in 2007.

BUGIS JUNCTION LEASE EXPIRY PROFILE BUGIS JUNCTION PROPERTY INFORMATION

38.3% NET LETTABLE AREA 410,619 sq. ft. (as at 31 December 2005) NUMBER OF TENANTS 218 26.8% (as at 31 December 2005) 24.7% CAR PARK LOTS 648 (as at 31 December 2005) 17.4% 17.3% TITLE leasehold tenure of 99 years with effect 12.2% from 10 September 1990

PURCHASE PRICE S$580.8 million 0.0% 0.0% 0.0% 0.0% MARKET VALUATION S$615.0 million 2006 2007 2008 2009 2010 (as at 1 December 2005) % of total gross rental income for the month OCCUPANCY RATE 100% of December 2005 (as at 31 December 2005) % of total NLA as at 31 December 2005

inspire > 139 ASSET ENHANCEMENT INITIATIVES In 2005, a strong testament to our ability to create value for our Unitholders was the successful unlocking of the value of Seiyu’s master lease, even before the acquisition of the asset was completed.

We will continue our proactive efforts to enhance Bugis Junction in 2006 by focusing on two key aspects: optimising the use of retail space in the mall and enhancing customers’ shopping experience. Planned work includes the reconfi guration of the areas taken back from Seiyu to create more specialty retail units and maximise the rental value. In addition, we are considering the conversion of some common areas into leaseable units and the rejuvenation of the food & beverage outlets at Malabar Block to tap the increased traffi c fl ow from the opening of the National Library next door. We also plan to provide additional escalators to enhance connectivity to the upper levels, improve the air-conditioning system, upgrade restrooms and install a car park guidance system.

TENANCY MIX Bugis Junction has a large and diversiﬁ ed tenant base comprising 218 leases as at 31 December 2005. The tenant mix includes popular brand names such as Seiyu, Shaw Theatres, Kinokuniya Bookstore and Cold Storage.

Continuing efforts will be made to further improve the current retail offering through introduction of better brand names and tenant-mix to strengthen Bugis Junction’s market position.

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PROMOTIONAL AND MARKETING ACTIVITIES Attractive lucky draws, free gifts, festive booths and a great line-up of performances heralded the start of the Christmas celebrations at Bugis Junction on 19 November 2005. As well as our own lucky draw, shoppers had a chance of winning Nissan March cars and were treated to performances from the Safri Boyz, Swiss Dream Circus and The Comedy of James G, while roving carol singers took the festive mood right into the premises of tenants.

Vendors for our Christmas Gift Fair and pushcarts along our air- conditioned streets were specially selected for the quality of their festive goods, and a structure in the fountain area at Bugis Square was designed both as a Christmas decoration and a gift booth.

Other exciting and well-publicised events such as MediaCorp’s ‘Super Host’ press conference, ‘Aeon Flux’ movie promotion and AXN’s ‘Kung Fu Hustle’ promotion drew very good crowds.

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TRADE SECTOR ANALYSIS TRADE SECTOR ANALYSIS BY BY GROSS RENTAL INCOME NET LETTABLE AREA (FOR THE MONTH OF DECEMBER 2005) (AS AT 31 DECEMBER 2005)

Fashion 27.0 % Department Store 43.5%

Food & Beverage / Food Court 25.1% Food & Beverage / Food Court 17.7%

Leisure and Entertainment/ Department Store 19.7% Sports & Fitness 13.6%

Educational/Services 12.5% Fashion 10.9%

Leisure and Entertainment/ Educational/Services 7.2% Sports & Fitness 9.2% BUGIS JUNCTION CENTRE Books/Gifts & Specialty/ Books/Gifts & Specialty/ MANAGEMENT TEAM (L to R): Charissa Hobbies/Toys 3.6% Hobbies/Toys 3.4% Wong (Leasing Manager), Margaret Khoo (Centre Supermarkets 3.4% Supermarkets 2.5% Manager), Samantha Tay (Leasing Manager), Pang

Electronics 0.4% Electronics 0.3% Chee Seng (Operation Manger), Phillip Phua (Marcom Manager)

inspire > 143 HOUGANG PLAZA is a three-storey retail property strategically located in Hougang Central in close proximity to the Hougang Mass Rapid Transit (MRT) station and bus interchange and with a basement car park of 154 parking spaces. CMT owns 96.7 percent of the 70,095 sq ft strata area of the property which is on a leasehold tenure of 99 years. Positioned as a neighbourhood mall for the community, catering to the basic shopping needs and entertainment of residents in the area, it has a population of over 156,000 within the main trading area i.e. 2 km radius from the mall.

SEMBAWANG SHOPPING CENTRE is located along Sembawang Road and is within close proximity of Sembawang and Yishun MRT stations. The shopping component, with net lettable area of 97,130 sq ft, consists of ﬁ ve ﬂ oors, including one basement level. The centre is positioned as a one-stop family-oriented necessity mall catering to the local residents. It is anchored by Giant Hypermart, and other major tenants include Kopitiam Foodcourt, Taste of Thailand, Satay Club and Sakae Sushi.

JURONG ENTERTAINMENT CENTRE is a ﬁ ve- storey entertainment centre in the heart of Jurong East Town Centre, next to the Jurong East MRT station and bus interchange as well as the Jurong East National Library. With four levels of retail and entertainment space and one level of basement car park, the centre boasts an ice-skating rink, a six-cinema cineplex, a family karaoke club, a games arcade, a brand new food court and all the major fast food outlets. Jurong Entertainment Centre is positioned as a hip destination for shopping, dining and entertainment targeting youths and residents in the west of Singapore.

144 > inspire INviting_experiences_new acquisitions

jurong hougang plaza entertainment centre HOUGANG PLAZA UNITS SEMBAWANG SHOPPING CENTRE JURONG ENTERTAINMENT CENTRE PROPERTY INFORMATION PROPERTY INFORMATION PROPERTY INFORMATION

NET LETTABLE AREA 67,813 sq. ft. NET LETTABLE AREA 97,130 sq. ft. NET LETTABLE AREA 110,795 sq. ft. (as at 31 December 2005) (as at 31 December 2005) (as at 31 December 2005) NUMBER OF TENANTS 6 NUMBER OF TENANTS 69 NUMBER OF TENANTS 32 (as at 31 December 2005) (as at 31 December 2005) (as at 31 December 2005) CAR PARK LOTS 1541 CAR PARK LOTS Multi-storey carpark: CAR PARK LOTS 220 (as at 31 December 2005) (as at 31 December 2005) 240 (as at 31 December 2005) TITLE Leashold tenure of External carpark2 : 239 TITLE Leashold tenure of 99 years with effect Total : 479 99 years with effect from 1 March 1991 TITLE Leashold tenure of from 1 March 1991 999 years with effect PURCHASE PRICE S$43.8 million from 26 March 1885 PURCHASE PRICE S$68.0 million

MARKET VALUATION S$44.3 million PURCHASE PRICE S$78.0 million MARKET VALUATION S$69.6 million (as at 1 December 2005) (as at 1 December 2005) MARKET VALUATION S$79.6 million OCCUPANCY RATE 100.0% (as at 1 December 2005) OCCUPANCY RATE 99.5% (as at 31 December 2005) (as at 31 December 2005) OCCUPANCY RATE 100.0% (as at 31 December 2005)

1. The carpark lots are owned by the management corporation. 2. This refers to the external carpark, under a temporary occupation license, located next to Sembawang Shopping Centre.

inspire > 145 INviting_experiences_new acquisitions

ASSET ENHANCEMENT INITIATIVES We will be exploring various options to asset enhance At Jurong Entertainment Centre, two units were Hougang Plaza Units through potential reconfi gurations amalgamated and converted into a food court, and tenancy remixing at the mall. previously not available in the centre, to offer more variety of food at affordable prices. The interior of Major improvement works carried out at Sembawang the mall as well as the Basement 1 car park were Shopping Centre since June 2005 include conversion brightened with a fresh coat of paint and lighting was of the cash card parking system to Electronic Parking replaced. At the same time, the two washrooms on System (EPS) to provide seamless vehicular fl ow. Level 2 were upgraded. There are further plans in 2006 Upgrading of the façade and shop reconfi guration are to carry out more asset enhancement works to improve targeted to commence in end 2006. Other initiatives both the external building façade and internal shop will be undertaken to enhance the value of the mall confi guration and create a more conducive shopping and increase retail space through decantation of non- experience. commercial space and retail space on Level 4. The decanted area will be transferred onto Basement 1 and Levels 1, 2 and 3. An open landscape plaza will also be created on the rooftop.

TRADE SECTOR ANALYSIS HOUGANG PLAZA UNITS, SEMBAWANG SHOPPING Fashion 34.8% BY GROSS RENTAL INCOME CENTRE AND JURONG ENTERTAINMENT CENTRE (FOR THE MONTH OF DECEMBER 2005) Food & Beverage/Food Court 22.8% LEASE EXPIRY PROFILE Supermarkets 15.4%

58.9% Leisure and Entertainment/ 11.9% 52.5% Sports & Fitness

Books/Gifts & Specialty/ 7.9% Hobbies/Toys

Home Furnishings 5.5%

Department Store 0.9% 24.5% 23.0% 19.1% Educational/Services 0.8%

10.8% 7.0% 3.9% 0.0% 0.0% TRADE SECTOR ANALYSIS BY Fashion 38.0% NET LETTABLE AREA (AS AT 31 DECEMBER 2005) Food & Beverage/Food Court 21.8% 2006 2007 2008 2009 2010 Leisure and Entertainment/ 14.7% Sports & Fitness

Supermarkets 9.9% % of total gross rental income for the month of December 2005 Home Furnishings 8.7% % of total NLA as at 31 December 2005 Books/Gifts & Specialty/ 5.9% Hobbies/Toys

Department Store 0.6%

Educational/Services 0.4%

146 > inspire The objective for Hougang Plaza Units is to improve the rental yield of the property through tenancy remix and asset enhancement.

The objective for Sembawang Shopping Centre is to differentiate itself in the northern heartlands through enhancement works to improve the aesthetics, efﬁ ciency and functionality of the mall and strengthening of the tenancy mix.

The objective for Jurong Entertainment Centre is to re-brand and re-position itself as a hip entertainment hub providing a wide variety of food and entertainment activities for youths and young adults.

inspire > 147 INviting_experiences_new acquisitions

TENANCY MIX PROMOTIONAL AND MARKETING ACTIVITIES Jurong Entertainment Centre houses the only ice-skating rink in To reinforce and strengthen the positioning of Jurong Entertainment Singapore, Fuji Ice Palace, Shaw Theatres, K-box and all the major Centre as a hip entertainment and shopping destination, aggressive fast food outlets. In November 2005, a new food court was introduced joint promotions were implemented with TV stations, movie at Level 2 and this has further enhanced traffi c fl ow in the centre. distributors and record companies. These included such iconic events as ‘JEC Best of Friends’, ‘Gaming vs Reality’ and a ‘Body-Arts’ Current major tenants at Hougang Plaza include Kopitiam, G-Value painting competition which appealed to youngsters from the nearby supermarket, Novena Furnishing Centre , K-Box and Jack’s Place. secondary schools and polytechnic institution as well as residents from the West. F&B is critical to Sembawang Shopping Centre, and, within days of its acquisition, Kopitiam Foodcourt was confi rmed as a tenant and now In addition, during the year, pushcarts and promotion space vendors occupies 9,100 sq ft on Level 4. The introduction of an established were brought in to add variety to the tenant mix. food court chain in the centre has resulted in signifi cant improvement in shopper traffi c. In line with the proposed enhancement works, the In 2006, our tenants can look forward to more sales-effective events tenancy mix will be further enhanced and strengthened in 2006. targeted at youth, while shoppers can look forward to even more entertaining and fun iconic and thematic events.

148 > inspire HOUGANG PLAZA CENTRE JURONG ENTERTAINMENT MANAGEMENT TEAM (L to R): CENTRE MANAGEMENT TEAM Looi Keng (Centre Manager), Jaclyn Chan (L to R): Mustafa Bin Abdul Rahim (Leasing Manager), Eddie Lim (Operations (Operations Manager), Jeffrey Teo (Leasing Manager), June Ang (Marcom Manager) Manager), Callie Yah (Centre Manager), Danzel Foo (Marcom Manager),

SEMBAWANG CENTRE MANAGEMENT TEAM (L to R): Ricky Ho (Centre Manager), Sharon Cheng (Marcom Manager), Ivy Ang (Leasing Manager), Anthony Chua (Operations Manager)

inspire > 149 150 > inspire IN Detail We provide the details: To the smallest detail. We believe that all our stakeholders should know as much about our business as possible so that they can understand better the beneﬁ ts of their involvement with this investment vehicle. And, we are convinced that this will win their continued support and commitment to our long-term success.

inspire > 151 FINANCIAL STATEMENTS

Report of the Trustee 153 Statements by the Manager 154 Auditors’ Report to the Unitholders of CapitaMall Trust and its associate 155 Balance Sheets 156 Statements of Total Return 157 Distribution Statements 158 Statements of Movements in Unitholders’ Funds 159 Portfolio Statements 160 Statements of Cash Flows 165 Notes to the Financial Statements 167 Report of the Trustee

HSBC Institutional Trust Services (Singapore) Limited (the “Trustee”) is under a duty to take into custody and hold the assets of CapitaMall Trust (the “Trust”) in trust for the unitholders. In accordance with the Securities and Futures Act, Chapter 289 of Singapore, its subsidiary legislation and the Code on Collective Investment Schemes (collectively referred to as the “laws and regulations”), the Trustee shall monitor the activities of CapitaMall Trust Management Limited (the “Manager”) for compliance with the limitations imposed on the investment and borrowing powers as set out in the trust deed dated 29 October 2001 (as amended) (the “Trust Deed”) in each annual accounting period and report thereon to Unitholders in an annual report which shall contain the matters prescribed by the laws and regulations as well as the recommendations of the Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of the Certiﬁ ed Public Accountants of Singapore and the Trust Deed.

To the best knowledge of the Trustee, the Manager has, in all material respects, managed the Trust during the period covered by these ﬁ nancial statements, set out on pages 156 to 190, comprising the Balance Sheet, Statement of Total Return, Distribution Statement, Statement of Movements in Unitholders’ Funds, Portfolio Statement, Statement of Cash Flows and Notes to the Financial Statements, in accordance with the limitations imposed on the investment and borrowing powers set out in the Trust Deed, laws and regulations and otherwise in accordance with the provisions of the Trust Deed.

For and on behalf of the Trustee, HSBC Institutional Trust Services (Singapore) Limited

Arjun Bambawale Director

Singapore 22 February 2006

inspire > 153 Statement by the Manager

In the opinion of the directors of CapitaMall Trust Management Limited, the accompanying fi nancial statements set out on pages 156 to 190 comprising the Balance Sheets, Statements of Total Return, Distribution Statements, Statements of Movements in Unitholders’ Funds, Portfolio Statements, Statements of Cash Flows and Notes to the Financial Statements of CapitaMall Trust and its associate (the “Trust and its associate”) and of the Trust are drawn up so as to present fairly, in all material respects, the fi nancial position of the Trust and its associate and of the Trust as at 31 December 2005, and the total return, distributable income, cash fl ows and movements in Unitholders’ funds of the Trust and its associate and of the Trust for the fi nancial year ended 31 December 2005 in accordance with the recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of Certifi ed Public Accountants of Singapore and the provisions of the Trust Deed. At the date of this statement, there are reasonable grounds to believe that the Trust and its associate and the Trust will be able to meet their fi nancial obligations as and when they materialise.

For and on behalf of the Manager, CapitaMall Trust Management Limited

Pua Seck Guan Director

Singapore 22 February 2006

154 > inspire Auditors’ Report to the Unitholders of CapitaMall Trust and its associate (Constituted under a Trust Deed dated 29 October 2001 (as amended) in the Republic of Singapore)

We have audited the fi nancial statements of CapitaMall Trust (the “Trust”) and its associate (the “Trust and its associate”) and the fi nancial statements of the Trust as set out on pages 156 to 190, comprising the Balance Sheets, Statements of Total Return, Distribution Statements, Statements of Movements in Unitholders’ Funds, Portfolio Statements, Statements of Cash Flows and Notes to the Financial Statements. These fi nancial statements of the Trust and its associate and of the Trust are the responsibility of the Manager and the Trustee of the Trust. Our responsibility is to express an opinion on these fi nancial statements based on our audit.

We conducted our audit in accordance with Singapore Standards on Auditing. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the fi nancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fi nancial statements. An audit also includes assessing the accounting principles used and signifi cant estimates made by the Manager, as well as evaluating the overall fi nancial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the fi nancial statements of the Trust and its associate and the fi nancial statements of the Trust present fairly, in all material respects, the fi nancial position of the Trust and its associate and of the Trust as at 31 December 2005, and the total return, cash fl ows and movements in Unitholders’ funds of the Trust and its associate and of the Trust for the year ended 31 December 2005 in accordance with the recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of Certifi ed Public Accountants of Singapore.

KPMG Certiﬁ ed Public Accountants

Singapore 22 February 2006

inspire > 155 Balance Sheets As at 31 December 2005

Trust and its associate Trust Note 2005 2004 2005 2004 S$’000 S$’000 S$’000 S$’000 Non-current assets Plant and equipment 3 547 389 547 389 Investment properties 4 3,365,000 2,234,950 3,365,000 2,234,950 Interest in an associate 5 64,928 69,825 58,000 58,000 3,430,475 2,305,164 3,423,547 2,293,339

Current assets Trade and other receivables 6 13,942 9,311 13,942 9,311 Cash and cash equivalents 7 39,147 47,191 39,147 47,191 53,089 56,502 53,089 56,502

Current liabilities Trade and other payables 8 55,543 40,043 55,543 40,043 Current portion of security deposits 22,209 12,520 22,209 12,520 Provision for taxation 367 367 367 367 78,119 52,930 78,119 52,930

Net current (liabilities)/assets (25,030) 3,572 (25,030) 3,572

Non-current liabilities Interest-bearing loans and borrowings 9 1,089,232 660,000 1,089,232 660,000 Non-current portion of security deposits 32,308 26,258 32,308 26,258 1,121,540 686,258 1,121,540 686,258

Net assets 2,283,905 1,622,478 2,276,977 1,610,653

Represented by:

Unitholders’ funds 2,283,905 1,622,478 2,276,977 1,610,653

Units in issue (’000) 10 1,379,698 1,203,200 1,379,698 1,203,200

S$ S$ S$ S$

Net asset value per unit 1.66 1.35 1.65 1.34

The accompanying notes form an integral part of these ﬁ nancial statements. 156 > inspire Statements of Total Return Year ended 31 December 2005

Trust and its associate Trust Note 2005 2004 2005 2004 S$’000 S$’000 S$’000 S$’000

Gross revenue 11 243,087 177,239 243,087 177,239 Property expenses 12 (89,006) (63,029) (89,006) (63,029) Net property income 154,081 114,210 154,081 114,210

Interest income 13 219 26 4,975 4,990 Interest expense (23,991) (16,676) (23,991) (16,676) Asset management fees 14 (14,948) (11,312) (14,948) (11,312) Professional fees (797) (541) (797) (541) Trustee’s fees (828) (553) (828) (553) Audit fees (160) (160) (160) (160) Other charges (963) (442) (963) (442) Net income before share of proﬁ t of associate 112,613 84,552 117,369 89,516 Share of proﬁ t of associate 4,400 16,789 – – Net income 117,013 101,341 117,369 89,516

Net appreciation on revaluation of investment properties 293,284 159,669 293,284 159,669 Total return for the year before income tax 410,297 261,010 410,653 249,185 Income tax expense 15 – – – – Total return for the year 410,297 261,010 410,653 249,185

Earnings per unit (cents) 16

Basic 9.48 9.85 9.50 8.70

Diluted 9.48 9.85 9.50 8.70

The accompanying notes form an integral part of these ﬁ nancial statements.

inspire > 157 Distribution Statements Year ended 31 December 2005

Trust and its associate Trust 2005 2004 2005 2004 S$’000 S$’000 S$’000 S$’000

Income available for distribution to Unitholders at beginning of year 49,133 38,098 49,133 38,098 Net income 112,613 84,552 117,369 89,516 Net tax adjustments (Note A) 9,413 8,589 9,413 8,589 Interest income from associate 4,756 4,964 – – 126,782 98,105 126,782 98,105 Income available for distribution to Unitholders 175,915 136,203 175,915 136,203

Distribution to Unitholders:

Distribution of 4.41 cents per unit for period from 26/6/2003 to 31/12/2003 – (37,973) – (37,973) Distribution of 5.41 cents per unit for period from 1/1/2004 to 1/8/2004 – (49,097) – (49,097) Distribution of 4.07 cents per unit for period from 2/8/2004 to 31/12/2004 (48,971) – (48,971) – Distribution of 2.47 cents per unit for period from 1/1/2005 to 31/3/2005 (29,745) – (29,745) – Distribution of 2.51 cents per unit for period from 1/4/2005 to 30/6/2005 (30,245) – (30,245) – Distribution of 3.38 cents per unit for period from 1/7/2005 to 30/10/2005 (40,750) – (40,750) – (149,711) (87,070) (149,711) (87,070) Income available for distribution to Unitholders at end of the year 26,204 49,133 26,204 49,133

Note A – Net tax adjustments comprise:

Non-tax deductible/ (chargeable) items - asset management fees paid/payable in units 7,007 5,735 7,007 5,735 - trustee’s fees 828 553 828 553 - write-off of assets 1,559 635 1,559 635 - other items 1,655 2,359 1,655 2,359 Tax deductible item - capital allowances/ balancing allowances (1,636) (693) (1,636) (693) Net tax adjustments 9,413 8,589 9,413 8,589

The accompanying notes form an integral part of these ﬁ nancial statements.

158 > inspire Statements of Movements in Unitholders’ Funds Year ended 31 December 2005

Trust and its associate Trust 2005 2004 2005 2004 S$’000 S$’000 S$’000 S$’000

Net assets at beginning of the year, as previously reported 1,622,478 972,443 1,610,653 972,443 Effect of change in accounting policy (Note 17) (2,052) – – – Net assets at beginning of the year, restated 1,620,426 972,443 1,610,653 972,443

Operations Net income 117,013 101,341 117,369 89,516 Net appreciation on revaluation of investment properties 293,284 159,669 293,284 159,669 Net increase in net assets resulting from operations 410,297 261,010 410,653 249,185

Hedging reserve

Effective portion of changes in fair value of cash ﬂ ow hedges (2,489) – – –

Unitholder’s transactions

Creation of units - contributions on placements and public offering 406,895 238,140 406,895 238,140 - partial satisfaction of purchase consideration on investment property acquired – 238,140 – 238,140 - asset management fees paid/payable in units 8,853 4,888 8,853 4,888 Issue expenses (Note 18) (10,366) (5,073) (10,366) (5,073) Distribution to Unitholders (149,711) (87,070) (149,711) (87,070) Net increase in net assets resulting from Unitholders’ transactions 255,671 389,025 255,671 389,025 Net assets at end of the year 2,283,905 1,622,478 2,276,977 1,610,653

The accompanying notes form an integral part of these ﬁ nancial statements.

inspire > 159 tal 400,000 352,000 17.5 21.7

2 2 Jurong East Street 21 Commercial 79.1 74.9 1 43 years 1 Leasehold 999 years 879 years 604 Sembawang Road, Commercial 100.0 – 79,600 – 3.5 – 5 Leasehold 99 years 85 years 1189 Upper Serangoon Commercial 100.0 – 44,300 – 2.0 – 4 Freehold – – 68 Orchard Road, Commercial 99.6 100.0 803,000 736,950 35.2 45.4 3 Balance carried forward 2,680,400 2,234,950 117.4 137.8 117.4 2,234,950 2,680,400 forward carried Singapore Balance nancial statements. The accompanying notes form an integral part of these ﬁ Portfolio Statements As at 31 December 2005 and its associate Trust Description of Property Investment properties in Singapore of Tenure of Term Remaining Location Existing Use Occupancy Rates At Valuation/Cost Percentage of To Singapore Singapore Road, Hougang Plaza Units Sembawang Shopping Centre % % S$’000 S$’000 % Singapore % Mall Tampines Singapore Junction 8 Leasehold Funan DigitaLife Mall 2005 2004 2004 Land 99 years (formerly known as Funan The IT Mall) 86 years Singapore Lease IMM Building Leasehold Central 5, Leasehold 4 Tampines Commercial of Lease Term 99 years 99 years 100.0 Plaza Singapura 73 years 85 years 100.0 109 North Bridge Road, 9 Bishan Place, Commercial Leasehold 633,000 98.7 60 years Commercial 548,000 100.0 99.9 27.7 247,500 99.5 202,000 473,000 Singapore as at 31 December 33.8 396,000 10.8 20.7 12.5 24.4 Net Assets

160 > inspire tal 3,365,000 2,234,950 147.3 137.8 147.3 2,234,950 3,365,000 (1,146,023) (682,297) (50.1) (42.1) (50.1) (682,297) (1,146,023) 64,928 69,825 2.8 4.3 2.8 69,825 64,928

Leasehold 99 years 85 years 2 Jurong East Central 1, Commercial 99.3 – 69,600 – 3.0 – 6 Leasehold 99 years 84 years Street, 200 Victoria Commercial 100.0 – 615,000 – 26.9 – 7 2,283,905 1,622,478 100.0 100.0 100.0 1,622,478 2,283,905 Singapore Bugis Junction Portfolio Statements As at 31 December 2005 (cont’d) and its associate Trust Description of Property Investment properties in Singapore of Tenure of Term Remaining Location Existing Use Occupancy Rates At Valuation/Cost Percentage of To Balance carried forward 2,680,400 2,234,950 117.4 137.8 117.4 2,234,950 2,680,400 forward carried Balance Jurong Entertainment Centre Singapore Investment properties, at valuation % % S$’000 S$’000 % % % S$’000 S$’000 % % 142.1 2005 2004 2004 Land 150.1 2,304,775 Lease Interest in an associate (Note 5) 3,429,928 of Lease Term Other assets and liabilities (net) Net assets as at 31 December nancial statements. The accompanying notes form an integral part of these ﬁ Net Assets

inspire > 161 tal 400,000 352,000 17.6 21.9 2 2 Jurong East Street 21, Commercial 79.1 74.9 1 43 years 43 1

Leasehold 999 years 879 years 604 Sembawang Commercial 100.0 – 79,600 – 3.5 – 5 Leasehold 99 years 85 years 1189 Upper Serangoon Commercial 100.0 – 44,300 – 1.9 – 4 Freehold – – 68 Orchard Road, Commercial 99.6 100.0 803,000 736,950 35.3 45.8 3 138.8 117.8 2,234,950 2,680,400 forward Singapore carried Road, Balance nancial statements. The accompanying notes form an integral part of these ﬁ Portfolio Statements As at 31 December 2005 Trust Description of Property Investment properties in Singapore of Tenure of Term Remaining Location Existing Use Singapore Occupancy Rates At Valuation/Cost Hougang Plaza Units Percentage of To (formerly known as Singapore Singapore as Singapore Mall Tampines Singapore known Junction 8 Funan DigitaLife Mall Leasehold (formerly 99 years Funan The IT Mall) 86 years IMM Building Leasehold Leasehold Singapore Central 5, 4 Tampines 99 years 99 years Commercial 100.0 73 years 85 years Road, 109 North Bridge Road, 9 Bishan Place, 100.0 Commercial Leasehold 98.7 633,000 60 years Commercial Sembawang Shopping Centre 100.0 548,000 99.9 99.5 247,500 27.8 473,000 202,000 34.0 396,000 10.9 20.8 12.5 24.6 % % S$’000 S$’000 % % % S$’000 S$’000 % % 2005 2004 2004 Land Singapore Lease of Lease Term Plaza Singapura as at 31 December Net Assets

162 > inspire tal ing tenants and licensees at the Surrender Premises remises, which comprise #B1-01, part of #01-01 and gs Pte Ltd, on 20 June 2005 (13.6%), 30 (78.8%) and 16 August (4.3%), respectively. 04: 99.4%). encing from 7 April 1995. Under the Agreement to Surrender, the existing tenancy and licence agreements in favour of exist encing from 7 April 1995. Under the Agreement to Surrender, ”) and The Seiyu, Ltd., in respect of the surrender of the Surrender Premises by Seiyu Singapore to the Trust. The Surrender P ”) and The Seiyu, Ltd., in respect of the surrender Surrender Premises by Seiyu Singapore to Trust. 3,365,000 2,234,950 147.8 138.8 147.8 2,234,950 3,365,000 (1,146,023) (682,297) (50.3) (42.4) (50.3) (682,297) (1,146,023) 58,000 58,000 2.5 3.6 2.5 58,000 58,000

Leasehold 99 years 85 years 2 Jurong East Central 1, Commercial 99.3 – 69,600 – 3.1 – 6 Leasehold 99 years 84 years Street, 200 Victoria Commercial 100.0 – 615,000 – 26.9 – 7 2,276,977 1,610,653 100.0 100.0 100.0 1,610,653 2,276,977 will be novated by Seiyu Singapore to the Trust on 1 November 2005. will be novated by Seiyu Singapore to the Trust of the 4th storey, forms part of the premises at Bugis Junction currently leased by Seiyu Singapore for a term 20 years comm of the 4th storey, Singapore Bugis Junction Portfolio Statements As at 31 December 2005 (cont’d) Trust Description of Property Investment properties in Singapore of Tenure of Term Remaining Location Existing Use Occupancy Rates At Valuation/Cost 1 2 Upfront land premium of S$55.7 million for a lease term 45 years was paid in January 2004. ce and warehouse is 99.5% (20 Figure based on occupancy of entire building. Occupancy rate at 31 December 2005 excluding ofﬁ Percentage of To nancial statements. The accompanying notes form an integral part of these ﬁ Balance carried forward 2,680,400 2,234,950 117.8 138.8 117.8 2,234,950 2,680,400 forward carried Balance Jurong Entertainment Centre Singapore Investment properties, at valuation % % S$’000 S$’000 % % % S$’000 S$’000 % % 142.4 2005 2004 2004 Land 150.3 2,292,950 Lease Interest in an associate (Note 5) 3,423,000 of Lease Term Other assets and liabilities (net) Net assets 3 4 on 2 August 2004. Plaza Singapura was acquired from (Private) Limited, a related party of the Manager, Place Holdin 5 Central Development Pte Ltd, S28 Holdings Ltd and Jack’s Hougang Plaza Units were acquired from Town 6 Sembawang Shopping Centre was acquired from Ang Oon Hue Private Limited, on 10 June 2005. 7 Jurong Entertainment Centre was acquired from Shaw Development Pte Ltd, on 31 October 2005. on 31 October 2005. Bugis Junction was acquired from BCH Retail Investment Pte Ltd, a related party of the Manager, entered into the Agreement to Surrender with Seiyu (Singapore) Private Limited (“Seiyu Singapore On 17 October 2005, the Trust as at 31 December Net Assets

inspire > 163 Richard Ellis Pte Ltd. The valuations were based on the capitalisation and discounted priate professional qualifi cations and recent experience in the location category of priate professional qualifi as Funan The IT Mall), IMM Building, Plaza Singapura, Hougang Units, Sembawang Mall), IMM Building, Plaza Singapura, Hougang Units, Sembawang Shopping Centre, as at 31 December 2004 were based on independent valuations undertaken by Knight Frank nitial non-cancellable period of three years. Subsequent renewals are negotiated with the Statement of Total Return of the Trust. Statement of Total opted were S$633,000,000, S$473,000,000, S$247,500,000, S$400,000,000, S$803,000,000, Portfolio Statements As at 31 December 2005 (cont’d) lessee. Contingent rents recognised in the Statement of Total Return of the Trust amounted to S$5,811,000 (2004: S$3,900,000). Return of the Trust lessee. Contingent rents recognised in the Statement of Total nancial statements. The accompanying notes form an integral part of these fi Shopping Centre, Jurong Entertainment Centre and Bugis Junction, respectively. The increase in valuation has been taken to the Shopping Centre, Jurong Entertainment Centre and Bugis Junction, respectively. Mall, Junction 8, Funan DigitaLife Mall (formerly known as The IT Mall) and IMM Building The carrying amounts of Tampines Pte Ltd while the carrying amount of Plaza Singapura as at 31 December 2004 was based on independent valuation undertaken by CB ow approaches. cash fl the leases contain an i Investment properties comprise commercial that are leased to external customers. Generally, Jurong Entertainment Centre and Bugis Junction were undertaken by CB Richard Ellis Pte Ltd. The independent valuers have appro ow approaches. The valuations ad the property being valued. The valuations were based on capitalisation and discounted cash fl Mall, Junction 8, Funan DigitaLife Mall (formerly known S$44,300,000, S$79,600,000, S$69,600,000 and S$615,000,000 for Tampines On 1 December 2005, independent valuations of Tampines Mall, Junction 8, Funan DigitaLife Mall (formerly known as The IT On 1 December 2005, independent valuations of Tampines 164 > inspire Statements of Cash Flows Year ended 31 December 2005

Trust and its associate Trust 2005 2004 2005 2004 S$’000 S$’000 S$’000 S$’000 Operating activities

Net income 117,013 101,341 117,369 89,516 Adjustments for: Interest income (219) (26) (4,975) (4,990) Interest expense 23,991 16,676 23,991 16,676 Write-off of assets 1,559 635 1,559 635 Allowance for doubtful receivables 11 1 11 1 Depreciation and amortisation 540 399 540 399 Share of proﬁ t of associate (4,400) (16,789) – – Asset management fees paid/payable in units 7,007 5,735 7,007 5,735 Operating income before working capital changes 145,502 107,972 145,502 107,972 Changes in working capital: Trade and other receivables (3,954) (3,248) (3,954) (3,248) Trade and other payables 8,291 8,973 8,291 8,973 Security deposits 2,661 3,188 2,661 3,188 Cash ﬂ ows from operating activities 152,500 116,885 152,500 116,885

Investing activities Interest received 4,970 2,596 4,970 2,596 Payment of land premium on investment property – (55,703) – (55,703) Net cash outﬂ ow on purchase of investment properties (including acquisition charges) (see Note A below) (786,066) (491,406) (786,066) (491,406) Capital expenditure on investment properties (37,345) (38,592) (37,345) (38,592) Purchase of plant and equipment (312) (264) (312) (264) Cash ﬂ ows from investing activities (818,753) (583,369) (818,753) (583,369)

Balance carried forward (666,253) (466,484) (666,253) (466,484)

The accompanying notes form an integral part of these ﬁ nancial statements.

inspire > 165 Statements of Cash Flows Year ended 31 December 2005 (cont’d)

Trust and its associate Trust Note 2005 2004 2005 2004 S$’000 S$’000 S$’000 S$’000

Balance brought forward (666,253) (466,484) (666,253) (466,484)

Financing activities Proceeds from interest-bearing loans and borrowings 573,000 335,000 573,000 335,000 Repayment of short-term borrowings (140,000) – (140,000) – Proceeds from issue of units 406,895 238,140 406,895 238,140 Payment of issue and fi nancing expenses (11,168) (6,925) (11,168) (6,925) Distribution to Unitholders (149,711) (87,070) (149,711) (87,070) Interest paid (20,807) (14,873) (20,807) (14,873) Cash fl ows from fi nancing activities 658,209 464,272 658,209 464,272

Net decrease in cash and cash equivalents (8,044) (2,212) (8,044) (2,212) Cash and cash equivalents at beginning of the year 7 47,191 49,403 47,191 49,403 Cash and cash equivalents at end of the year 7 39,147 47,191 39,147 47,191

Note:

(A) Net Cash Outﬂ ow on Purchase of Investment Properties (including acquisition charges)

Net cash outﬂ ow on purchase of investment properties (including acquisition charges) is set out below:

2005 2004 S$’000 S$’000

Investment properties (including acquisition charges) 796,312 735,652 Cash 12,954 5,908 Other assets 1,066 143 Trade and other payables 1,642 (341) Security deposits (12,954) (5,908) Net identiﬁ able assets and liabilities acquired 799,020 735,454 Purchase consideration paid in units – (238,140) Cash consideration paid 799,020 497,314 Cash acquired (12,954) (5,908) Net cash outﬂ ow 786,066 491,406

(B) Signiﬁ cant Non-Cash Transactions

During the ﬁ nancial year, there were the following signiﬁ cant non-cash transactions:

(i) 3,969,705 (2004: 3,136,582) units were issued or will be issued as payment for the asset management fees payable in units, amounting to a value of S$8,853,000 (2004: S$4,888,000).

(ii) 147,000,000 units at S$1.62 each, amounting to S$238,140,000, were issued in 2004 as part satisfaction of the purchase consideration on an investment property, Plaza Singapura, acquired during 2004.

The accompanying notes form an integral part of these ﬁ nancial statements.

166 > inspire Notes to the Financial Statements

These notes form an integral part of the ﬁ nancial statements.

The ﬁ nancial statements were authorised for issue by the Manager and the Trustee on 22 February 2006.

1 General

CapitaMall 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 CapitaMall 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 in trust for the holders (“Unitholders”) of units in the Trust (the “Units’).

The Trust was formally admitted to the Ofﬁ cial List of the Singapore Exchange Securities Trading Limited (“SGX-ST”) 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 in income producing real estate in Singapore, which is used or substantially used for retail purposes with the primary objective of achieving an attractive level of return from rental income and for long-term capital growth.

The consolidated ﬁ nancial statements relate to the Trust and its associate (referred to as the “Trust and its associate”).

The Trust has entered into several service agreements in relation to management of the Trust and its property operations. The fee structures of these services are as follows:

Property management fees

Under the Property Management Agreements, property management fees 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

The property management fees are payable quarterly in arrears.

Asset management fees

Pursuant to the Trust Deed, the asset management fees shall not exceed 0.70% per annum of the Deposited Property or such higher percentage as may be ﬁ xed by an Extraordinary Resolution at a meeting of Unitholders. Deposited Property refers to all the assets of the Trust, including all its authorised investments for the time being held or deemed to be held upon the trusts of the Trust Deed.

The asset management fees comprise a base component of 0.25% per annum of Property Value and a performance component of 2.85% per annum of gross revenue of the Trust for each ﬁ nancial year. The base component shall be paid to the Manager out of the Deposited Property. Property Value means the aggregate of the value of investment properties.

The performance component is:

(a) (for the 60-month period from the Listing Date) paid in the form of units to be issued to the Manager in respect of Tampines Mall, Junction 8, Funan DigitaLife Mall, Plaza Singapura, Hougang Plaza Units, Sembawang Shopping Centre, Jurong Entertainment Centre and Bugis Junction; in the form of cash in respect of IMM Building; and either in the form of cash or in the form of units (as the Manager may elect, such election to be irrevocable and made prior to the ﬁ rst payment of the performance component immediately following the acquisition of the relevant property) in respect of any other property to be acquired by the Trust; and

inspire > 167 Notes to the Financial Statements

(b) (after 60 months following the Listing Date) paid in cash.

When the performance component is paid in the form of units, the Manager shall be entitled to receive such number of units as may be purchased for the relevant amount of the management fee at:

(a) (in respect of Tampines Mall, Junction 8 and Funan DigitaLife Mall) an issue price of S$0.96 per unit, unless the market price (as deﬁ ned in the Trust Deed) at the time of issue exceeds S$2.00 or more per unit, in which event, the units will be issued at a 25% discount from that market price; and

(b) (in respect of Plaza Singapura, Hougang Plaza Units, Sembawang Shopping Centre, Jurong Entertainment Centre, Bugis Junction and any other property to be acquired by the Trust) the market price (as deﬁ ned in the Trust Deed).

The asset management fees are payable quarterly in arrears.

Trustee’s fees

Pursuant to the Trust Deed, the Trustee’s fees shall not exceed 0.10% per annum of the Deposited Property (subject to a minimum sum of S$6,000 per month) payable out of the Deposited Property of the Trust. The Trustee is also entitled to reimbursement of expenses incurred in the performance of its duties under the Trust Deed.

Based on the current agreement between the Manager and Trustee, the Trustee’s fees are agreed to be 0.03% per annum of the Deposited Property (subject to a minimum sum of S$6,000 per month).

The Trustee’s fees are payable quarterly in arrears.

2 Summary of Signiﬁ cant Accounting Policies

2.1 Basis of Preparation

The ﬁ nancial statements have been prepared in accordance with the Statement of Recommended Accounting Practice (“RAP”) 7 “Reporting Framework for Unit Trusts” issued by the Institute of Certiﬁ ed Public Accountants of Singapore, and the applicable requirements of the Code on Collective Investment Schemes (the “CIS Code”) issued by the Monetary Authority of Singapore (“MAS”) and the provisions of the Trust Deed.

The ﬁ nancial statements, which are expressed in Singapore dollars and rounded to the nearest thousand, are prepared on the historical cost basis, except that investment properties are stated at valuation.

In 2005, the Trust and its associate adopted the revised RAP 7 “Reporting Framework for Unit Trusts” issued in May 2005. The effect of adopting this revised RAP 2005 is set out in note 17.

Items included in the fi nancial statements of the Trust are measured using the currency that best refl ects the economic substance of the underlying events and circumstances relevant to the Trust (the “functional currency”). The fi nancial statements of the Trust and its associate and the Trust are presented in Singapore dollars, which is the functional currency of the Trust.

The preparation of ﬁ nancial statements in conformity with RAP 7 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying amounts of assets and liabilities that are not readily apparent from other sources.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.

168 > inspire Notes to the Financial Statements

2 Summary of Signiﬁ cant Accounting Policies (cont’d)

2.2 Plant and Equipment

Plant and equipment are stated at cost less accumulated depreciation and impairment losses. Depreciation is provided on a straight-line basis so as to write off items of plant and equipment, and major components that are accounted for separately, over their estimated useful lives as follows:

Furniture, ﬁ ttings and equipment - 2 to 5 years

Gains or losses arising from the retirement or disposal of plant and equipment are determined as the difference between the estimated net disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Total Return on the date of retirement or disposal.

2.3 Investment Properties

Investment properties are accounted for as non-current assets and are stated at initial cost on acquisition, and at valuation thereafter. Valuation is determined in accordance with the Trust Deed, which requires the investment properties to be valued by independent registered valuers in the following events:

• in such manner and frequency required under the CIS Code issued by MAS; and

• at least once in each period of 12 months following the acquisition of each parcel of real estate property.

Any increase or decrease on revaluation is credited or charged to the Statement of Total Return as a net revaluation surplus or deﬁ cit in the value of the investment properties.

Subsequent expenditure relating to investment properties that has already been recognised is added to the carrying amount of the asset when it is probable that future economic beneﬁ ts, in excess of originally assessed standard of performance of the existing asset, will ﬂ ow to the Trust and its associate. All other subsequent expenditure is recognised as an expense in the period in which it is incurred.

When an investment property is disposed of, the resulting gain or loss recognised in the Statement of Total Return is the difference between net disposal proceeds and the carrying amount of the property.

Investment properties are not depreciated. The properties are subject to continued maintenance and regularly revalued on the basis set out above. For taxation purposes, the Trust and its associate may claim capital allowances on assets that qualify as plant and machinery under the Income Tax Act.

Acquisition of investment properties is accounted for as acquisition of non-current assets.

2.4 Interest in an Associate

Associates are companies in which the Trust has signifi cant infl uence, but not control, over the fi nancial and operating policies. Investment in associates is stated in the Trust’s balance sheet at cost, less impairment losses. In the fi nancial statements of the Trust and its associate, the interest in an associate is accounted for using the equity method of accounting.

inspire > 169 Notes to the Financial Statements

2 Summary of Signiﬁ cant Accounting Policies (cont’d)

2.5 Trade and Other Receivables

Trade and other receivables are stated at their cost less allowance for doubtful receivables.

2.6 Cash and Cash Equivalents

Cash and cash equivalents comprise cash balances and bank deposits.

2.7 Impairment

The carrying amounts of the Trust and its associate’s assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated at each balance sheet date.

An impairment loss is recognised in the Statement of Total Return whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. An impairment loss in respect of investment properties carried at revalued amount is recognised in the same way as a revaluation decrease on the basis set out in Note 2.3.

Calculation of recoverable amount

The recoverable amounts of the Trust and its associate’s receivables carried at amortised costs are calculated as the present value of estimated future cash ﬂ ows discounted at the original effective interest rate. Receivables with a short duration are not discounted.

The recoverable amount of other assets is the greater of their net selling price and value in use. In assessing value in use, the estimated future cash fl ows are discounted to their present value using a pre-tax discount rate that refl ects current market assessments of the time value of money and the risks specifi c to the asset. For an asset that does not generate largely independent cash infl ows, the recoverable amount is determined for the cash-generating unit to which the asset belongs.

Reversals of impairment loss

An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount.

An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation, if no impairment loss had been recognised.

2.8 Trade and Other Payables

Trade and other payables are stated at cost.

2.9 Interest-Bearing Liabilities

Interest-bearing liabilities are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest-bearing liabilities are stated at amortised cost with any difference between cost and redemption value being recognised in the Statement of Total Return over the period of the borrowings on an effective interest basis.

170 > inspire Notes to the Financial Statements

2 Summary of Signiﬁ cant Accounting Policies (cont’d)

2.10 Taxation

Taxation on the return for the year comprises current and deferred tax. Income tax is recognised in the Statement of Total Return except to the extent that it relates to items directly related to Unitholders’ funds, in which case it is recognised in Unitholders’ funds.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the balance sheet date.

Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the tax base of assets and liabilities and their carrying amounts in the ﬁ nancial statements. The temporary differences on initial recognition of assets or liabilities that affect neither accounting nor taxable proﬁ t are not provided for. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date.

A deferred tax asset is recognised only to the extent that it is probable that future taxable proﬁ ts will be available against which the unused tax losses and credits can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax beneﬁ t will be realised.

The Inland Revenue Authority of Singapore (the “IRAS”) has issued a tax ruling on the income tax treatment of the Trust. Subject to meeting the terms and conditions of the tax ruling, the Trustee is not subject to tax on the taxable income of the Trust. Instead, the distributions made by the Trust out of such taxable income are subject to tax in the hands of Unitholders, unless they are exempt from tax on the Trust’s distributions. This treatment is known as the tax transparency treatment.

Individuals and qualifying Unitholders, i.e. companies incorporated and tax resident in Singapore, Singapore branches of foreign companies that have obtained waiver from the IRAS from tax deducted at source in respect of the distributions from the Trust, and bodies of persons registered or constituted in Singapore, are entitled to gross distributions from the Trust. For distributions made to foreign non-dividual Unitholders, the Trustee is required to withhold tax at the rate of 10%. For other types of Unitholders, the Trustee is required to withhold tax at the prevailing corporate tax rate on the distributions made by the Trust. Such other types of Unitholders are subject to tax on the regrossed amounts of the distributions received but may claim a credit for the tax deducted at source by the Trustee.

The Trust has a distribution policy where it is required to distribute at least 90% of its taxable income, other than gains from the sale of real estate properties that are determined by the IRAS to be trading gains. For the taxable income that is not distributed, referred to as retained taxable income, tax will be assessed on the Trustee. Where such retained taxable income is subsequently distributed, the Trustee need not deduct tax at source.

2.11 Issue Expenses

Issue expenses relate to expenses incurred in the issuance of additional units in the Trust. The expenses are deducted directly against Unitholders’ funds.

inspire > 171 Notes to the Financial Statements

2 Summary of Signiﬁ cant Accounting Policies (cont’d)

2.12 Revenue Recognition

Rental income from operating leases

Rental income receivable under operating leases is recognised in the Statement of Total Return on a straight-line basis over the term of the lease, except where an alternative basis is more representative of the pattern of beneﬁ ts to be derived from the leased assets. Lease incentives granted are recognised as an integral part of the total rental to be received. Contingent rentals, which include gross turnover rental, are recognised as income in the accounting period on a receipt basis. No contingent rentals are recognised if there are uncertainties due to the possible return of amounts received.

Interest income

Interest income from bank deposits is accrued on a time-apportioned basis.

2.13 Expenses

Property expenses

Property expenses consist of quit rents, property taxes and other property outgoings in relation to investment properties where such expenses are the responsibility of the Trust.

Included in the property expenses are the property management fees.

Asset management fees

Asset management fees are recognised on an accrual basis using the applicable formula, stipulated in Note 1. Where applicable, upon issuance of the units, the asset management fees are adjusted based on the market value of the actual number of units issued on date of issuance of the units to the Manager.

Trustee’s fees

The Trustee’s fees are recognised on an accrual basis.

Interest expenses

Interest expenses are recognised in the period in which they are incurred on an accrual basis.

2.14 Segment Reporting

A segment is a distinguishable component of the Trust and its associate that is engaged either in providing products or services (business segment), or in providing products or services within a particular economic environment (geographical segment), which is subject to risks and rewards that are different from those of other segments.

172 > inspire Notes to the Financial Statements

3 Plant and Equipment Trust and its associate and Trust

Furniture, ﬁ ttings and equipment S$’000 Cost

At 1 January 2004 258 Additions 264 At 31 December 2004 522

At 1 January 2005 522 Additions 312 At 31 December 2005 834

Accumulated depreciation

At 1 January 2004 30 Charge for the year 103 At 31 December 2004 133

At 1 January 2005 133 Charge for the year 154 At 31 December 2005 287

Carrying amount

At 1 January 2004 228 At 31 December 2004 389

At 1 January 2005 389 At 31 December 2005 547

4 Investment Properties Trust and its associate and Trust 2005 2004 S$’000 S$’000

At 1 January 2,234,950 1,240,000 Acquisition of investment properties 796,312 735,652 Land premium paid – 55,703 Capital expenditure capitalised 42,013 44,561 Write-off of assets (1,559) (635) 3,071,716 2,075,281 Revaluation differences recognised in Statement of Total Return 293,284 159,669 At 31 December 3,365,000 2,234,950

The investment properties have been mortgaged as security for credit facilities granted by Silver Maple Investment Corporation Ltd (Note 9) to the Trust. inspire > 173 Notes to the Financial Statements

5 Interest in an Associate Trust and its associate Trust 2005 2004 2005 2004 S$’000 S$’000 S$’000 S$’000 Cost

Unquoted - CapitaRetail Singapore Limited 1: - S$58 million 10% Secured Fixed Rate Class E Bonds due 2009 (Class E Bonds) 58,000 58,000 58,000 58,000 - 232 Redeemable Preference Shares issued in connection with Class E Bonds * * * * 58,000 58,000 58,000 58,000

Share of post – acquisition proﬁ t and reserve 6,928 11,825 – – 64,928 69,825 58,000 58,000

* Less than S$1,000.

1 Audited by KPMG Singapore

The Trust has invested S$58,000,000 in the Class E Bonds and 232 attached Redeemable Preference Shares issued by CapitaRetail Singapore Limited (CRSL), representing 27.2% of the Class E Bonds and Redeemable Preference Shares, respectively.

CRSL is a Singapore incorporated company and has its place of business in Singapore. The principal activity of CRSL is that of an investment holding company. CRSL is a special purpose vehicle, whose main objects are to own all the issued units in CapitaRetail BPP Trust (CRBPPT), CapitaRetail Lot One Trust (CRLOT) and CapitaRetail Rivervale Trust (CRRT) and to issue the bonds and the redeemable preference shares as well as to extend mortgage loans to CRBPPT, CRLOT and CRRT. CRBPPT, CRLOT and CRRT in turn own Bukit Panjang Plaza, Lot One Shoppers’ Mall and Rivervale Mall respectively.

The bonds and redeemable preference shares issued by CRSL are as follows:

(i) €67,500,000 Secured Floating Rate Final Class A Bonds due 2009 (Class A Bonds);

(ii) €13,500,000 Secured Floating Rate Final Class B Bonds due 2009 (Class B Bonds);

(iii) S$33,000,000 Secured Fixed Rate Final Class C Bonds due 2009 (Class C Bonds);

(iv) S$83,000,000 Secured Fixed Rate Final Class D Bonds due 2009 (Class D Bonds); and

(v) S$213,000,000 Secured Fixed Rate Class E Bonds due 2009 (Class E Bonds), together with 852 Redeemable Preference Shares of S$0.10 each.

The salient terms of the Class E Bonds are as follows:

(i) Class E Bonds bear interest at the ﬁ xed rate of 10% per annum, payable semi-annually in arrears. In the event of failure to pay 10% per annum interest on Class E Bonds, the rights of holders of Class E Bonds to unpaid interest will be extinguished and such failure does not constitute an event of default;

(ii) the payment of interest on Class E Bonds is subordinated to other classes of the Bonds (Class A to Class D); and

(iii) the redemption of Class E Bonds is subordinated to other classes of the Bonds (Class A to Class D).

174 > inspire Notes to the Financial Statements

5 Interest in an Associate (cont’d)

The Redeemable Preference Shares issued in connection with Class E Bonds have limited voting rights under certain prescribed circumstances (other than those conferred by law). The holders of Redeemable Preference Shares shall be entitled to, amongst others, the following:

(i) “Special Preferential Dividend” based on the sale price of the units or property (as the case may be) less liabilities of CRSL and expenses when any properties or units in the property trusts (namely, CRBPPT, CRLOT and CRRT) are sold; and

(ii) each preference share shall be redeemed by CRSL on redemption date as deﬁ ned. The redemption amount shall be based on the aggregate of the par value of redeemable preference shares, outstanding special preferential dividend, net asset value of CRSL and any insurance proceeds less expenses.

The ﬁ nancial information of the associate is as follows:

2005 2004 S$’000 S$’000 Assets and Liabilities Total assets 583,070 571,118

Total liabilities 557,628 527,691

Results Revenue 48,690 49,150

Loss after taxation (2,436) (668)

6 Trade and Other Receivables Trust and its associate and Trust 2005 2004 S$’000 S$’000

Trade receivables 7,535 4,437 Allowance for doubtful receivables – (61) Net trade receivables 7,535 4,376 Deposits 2,430 1,409 Prepayments 215 300 Interest receivable 2,404 2,398 Other receivables 1,358 828 13,942 9,311

7 Cash and Cash Equivalents Trust and its associate and Trust 2005 2004 S$’000 S$’000

Cash at bank and in hand 34,128 47,191 Fixed deposits with ﬁ nancial institutions 5,019 – 39,147 47,191

inspire > 175 Notes to the Financial Statements

8 Trade and Other Payables Trust and its associate and Trust 2005 2004 S$’000 S$’000

Trade payables and accrued operating expenses 40,731 27,847 Amounts due to related parties (trade) 8,141 9,181 Deposits and advances 3,792 2,954 Interest payables 2,879 61 55,543 40,043

Included in amounts due to related parties is an amount due to the Manager of S$2,364,000 (2004: S$3,613,000) and an amount due to the property manager of S$4,813,000 (2004: S$1,167,000). Included in trade payables and accrued operating expenses was an amount due to the Trustee of S$262,000 (2004:S$175,000).

9 Interest-Bearing Loans and Borrowings Trust and its associate and Trust 2005 2004 S$’000 S$’000

Term loans 1,061,232 632,000 Revolving credit facility 28,000 28,000 1,089,232 660,000

Maturity of loans and borrowings - After 1 year but within 5 years 172,000 172,000 - After 5 years 917,232 488,000 1,089,232 660,000

The term loans and revolving credit facility were granted by a special purpose company, Silver Maple Investment Corporation Ltd (Silver Maple). Under the facility agreement between Silver Maple and the Trustee, Silver Maple has granted the Trust a total facility of S$1,187 million (2004: S$704 million), made up of S$1,065 million (2004: S$632 million) term loan and S$122 million (2004: S$72 million) revolving credit facility.

The total facility drawn down by the Trust as at 31 December 2005 was S$1,093 million (2004: S$660 million), consisting of:

(i) S$433 million (2004: S$ Nil) term loan at a ﬁ xed interest rate of 3.13% (2004: Nil %) per annum, fully repayable on 30 April 2014. Under the facility agreement, the Trust has the option to prepay in full on 31 October 2012. In the event that the Trust opts not to fully settle the term loan on 31 October 2012, the interest rate of 1.00% (2004: Nil %) above the Singapore Interbank Offered Rate (SIBOR) repriced every three months, will be applicable for the period from 31 October 2012 to 30 April 2014;

(ii) S$172 million (2004: S$172 million) term loan at a ﬁ xed interest rate of 3.91% (2004: 3.91%) per annum, fully repayable on 26 August 2008. Under the facility agreement, the Trust has the option to prepay in full on 26 February 2007. In the event the Trust opts not to fully settle the term loan on 26 February 2007, the interest rate of 2.62% (2004: 2.62%) above SIBOR repriced every three months, will be applicable for the period from 26 February 2007 to 26 August 2008;

(iii) S$125 million (2004: S$125 million) term loan at a ﬁ xed interest rate of 2.764% (2004: 2.764%) per annum, fully repayable on 26 December 2011. Under the facility agreement, the Trust has the option to prepay in full on 26 June 2010. In the event the Trust opts not to fully settle the term loan on 26 June 2010, the interest rate of 2.914% (2004: 2.914%) above the SIBOR repriced every three months, will be applicable for the period from 26 June 2010 to 26 December 2011;

176 > inspire Notes to the Financial Statements

9 Interest-Bearing Loans and Borrowings(cont’d)

(iv) S$335 million (2004: S$335 million) term loan at a ﬁ xed interest rate of 2.804% (2004: 2.804%) per annum for the period ending on 2 August 2007, and at the swap rate applicable at the draw-down date (as deﬁ ned in the facility agreement) plus 0.435% per annum for the period from 2 August 2007 to 2 August 2009, provided that such rate does not exceed 8.935% per annum and shall not fall below 2.905% per annum. The term loan is fully repayable on 2 February 2011. Under the facility agreement, the Trust has the option to prepay in full on 2 August 2009. In the event the Trust opts not to fully settle the term loan on 2 August 2009, the interest rate of 0.87% above the SIBOR repriced every three months, will be applicable for the period from 2 August 2009 to 2 February 2011; and

(v) S$28 million (2004: S$28 million) revolving credit facility at ﬂ oating interest rate of 0.43% (2004: 0.43%) above the SIBOR for a period of either one, three or six months and fully repayable on 26 December 2011 (2004: 26 December 2011). Under the facility agreement, the Trust has the option to prepay in full on 26 June 2010. In the event the Trust opts not to fully settle the revolving credit facility on 26 June 2010, the interest rate of 2.43% (2004: 2.43%) above the SIBOR repriced every three months, will be applicable for the period from 26 June 2010 to 26 December 2011.

As security for credit facilities granted by Silver Maple to the Trust, the Trust has granted in favour of Silver Maple the following:

(i) a mortgage over each of the properties;

(ii) an assignment and charge of the rental proceeds and tenancy agreements of units in the properties;

(iii) an assignment of the insurance policies relating to the properties;

(iv) an assignment of the agreements relating to the management of the properties; and

(v) a charge creating a ﬁ xed and ﬂ oating charge over certain assets of the Trust relating to the properties.

Under the terms of the Silver Maple loan facility agreement, the Trust undertakes that:

(i) it shall not borrow or raise any monies if upon the effecting of such borrowing or raising the amount thereof would in the aggregate exceed such percentage of all assets of the Trust or other restriction or limit as may be imposed on the Trust from time to time by the Property Funds Guidelines of the Code on Collective Investment Schemes (the Property Funds Guidelines) issued by MAS and other relevant authorities; and

(ii) it shall maintain the debt service ratio at greater than 2.0.

Silver Maple has secured a S$2 billion (2004: S$1 billion) Medium Term Note Programme due 2008 (MTN Programme). Under this MTN Programme, Silver Maple may, subject to compliance with all relevant laws, regulations and directives, from time to time issue ﬁ xed or ﬂ oating interest rate notes (the Notes). The maximum aggregate principal amount of the Notes to be issued shall be S$2 billion. The Notes will be secured by the Notes Debenture.

To fund the loans to the Trust of S$1,065 million (2004: S$632 million) ﬁ xed rate term loan and S$28 million (2004: S$28 million) ﬂ oating rate revolving credit, Silver Maple has raised funds through the following:

(i) US$255.5 million (2004: US$ Nil) Floating Rate Notes at ﬂ oating interest rate of 0.24% (2004: Nil %) above the US dollar London Interbank Offered Rate (LIBOR) repriced every three months, for the period from 31 October 2005 to 31 October 2012. In the event that the Floating Rate Notes are not redeemed by Silver Maple on 31 October 2012, interest will accrue at the rate of 1.0% (2004: Nil %) above the US dollar LIBOR repriced every three months, for the period from 31 October 2012 to date of redemption on 30 April 2014;

inspire > 177 Notes to the Financial Statements

9 Interest-Bearing Loans and Borrowings(cont’d)

(ii) S$172 million (2004: S$172 million) Fixed Rate Notes at ﬁ xed interest rate of 3.86% (2004: 3.86%) per annum for the period from 26 February 2002 (date of ﬁ rst issue of Fixed Rate Notes) to 26 February 2007. In the event that the Fixed Rate Notes are not redeemed by Silver Maple on 26 February 2007, interest will accrue at the rate of 2.52% (2004: 2.52%) above the SIBOR repriced every three months, for the period from 26 February 2007 to date of redemption on 26 August 2008;

(iii) US$72.1 million (2004: US$72.1 million) Floating Rate Notes at ﬂ oating interest rate of 0.62% (2004: 0.62%) above the US dollar LIBOR repriced every three months, for the period from 26 June 2003 to 26 June 2010. In the event that the Floating Rate Notes are not redeemed by Silver Maple on 26 June 2010, interest will accrue at the rate of 2.30% (2004: 2.30%) above the US dollar LIBOR repriced every three months, for the period from 26 June 2010 to date of redemption on 26 December 2011;

(iv) US$195.5 million (2004: US$195.5 million) Floating Rate Notes at ﬂ oating interest rate of 0.32% (2004: 0.32%) above the US dollar LIBOR repriced every three months, for the period from 2 August 2004 to 2 February 2011. In the event that the Floating Rate Notes are not redeemed by Silver Maple on 2 August 2009, interest will accrue at the rate of 0.80% (2004: 0.80%) above the US dollar LIBOR repriced every three months, for the period from 2 August 2009 to date of redemption on 2 February 2011; and

(v) S$28 million (2004: S$28 million) Floating Rate Notes at ﬂ oating interest rate of 0.43% (2004: 0.43%) above the SIBOR, due and renewable on either one, three or six months’ duration until ﬁ nal redemption on 26 June 2010. In the event the Trust opts not to fully settle on 26 June 2010, the interest rate of 2.11% (2004: 2.11%) above the SIBOR repriced every three months, will be applicable for the period from 26 June 2010 to 26 December 2011.

10 Units in Issue Trust 2005 2004 ‘000 ’000 Units in issue: At 1 January 1,203,200 906,063 Units created: - placement of units during the year - on 31 October 2005 173,400 – - on 2 August 2004 – 147,000 - partial satisfaction of purchase consideration on investment property acquired – 147,000 - asset management fees paid in units 3,098 3,137 As 31 December 2005 1,379,698 1,203,200

Units to be issued: - assets management fees payable in units 871 – Total issued and issuable units at 31 December 2005 1,380,569 1,203,200

On 31 October 2005, the Trust issued 29,746,224 units and 143,653,776 units at S$2.33 and S$2.35 per unit respectively for cash:

- to part ﬁ nance the acquisition of Bugis Junction;

- to part reﬁ nance the S$123 million bridge loan taken to ﬁ nance the acquisitions of Hougang Plaza Units and Sembawang Shopping Centre;

- to part refi nance the S$6.8 million bridge loan taken to fi nance the payment of a deposit of 10% of the purchase consideration and part fi nance the balance of the purchase consideration on Jurong Entertainment Centre; and

- for the Trust’s working capital purposes.

178 > inspire Notes to the Financial Statements

10 Units in Issue (cont’d)

On 2 August 2004, the Trust issued 147,000,000 units at an issue price of S$1.62 per unit for cash to partly ﬁ nance the purchase consideration for Plaza Singapura. In addition, the Trust issued 147,000,000 units at an issue price of S$1.62 per unit to the vendor of Plaza Singapura as partial satisfaction of the purchase consideration on Plaza Singapura.

Each unit in the Trust represents an undivided interest in the Trust. The rights and interests of Unitholders are contained in the Trust Deed and include the right to:

• Receive income and other distributions attributable to the units held;

• Participate in the termination of the Trust by receiving a share of all net cash proceeds derived from the realisation of the assets of the Trust less any liabilities, in accordance with their proportionate interests in the Trust. However, a Unitholder has no equitable or proprietary interest in the underlying assets of the Trust and is not entitled to the transfer to it of any assets (or part thereof) or of any estate or interest in any asset (or part thereof) of the Trust; and

• Attend all Unitholders’ meetings. The Trustee or the Manager may (and the Manager shall at the request in writing of not less than 50 Unitholders or one-tenth in number of the Unitholders, whichever is lesser) at any time convene a meeting of Unitholders in accordance with the provisions of the Trust Deed.

The restrictions of a Unitholder include the following:

• A Unitholder’s right is limited to the right to require due administration of the Trust in accordance with the provisions of the Trust Deed; and

• A Unitholder has no right to request the Manager to redeem his units while the units are listed on SGX-ST.

A Unitholder’s liability is limited to the amount paid or payable for any units in the Trust. The provisions of the Trust Deed provide that no Unitholders will be personally liable for indemnifying the Trustee or any creditor of the Trustee in the event that liabilities of the Trust exceed its assets.

11 Gross Revenue Trust and its associate and Trust 2005 2004 S$’000 S$’000

Gross rental income 223,468 162,836 Car park income 7,580 5,669 Others 12,039 8,734 243,087 177,239

inspire > 179 Notes to the Financial Statements

12 Property Expenses Trust and its associate and Trust 2005 2004 S$’000 S$’000

Land rental 247 326 Property tax 22,406 15,688 Utilities 13,610 10,094 Property management fees 8,937 6,565 Property management reimbursements 9,579 6,824 Advertising and promotion 11,036 8,499 Maintenance 19,548 12,504 Others 3,643 2,529 89,006 63,029

13 Interest Income Trust and its associate Trust 2005 2004 2005 2004 S$’000 S$’000 S$’000 S$’000 Interest income - associated company – – 4,756 4,964 - ﬁ nancial institution 219 26 219 26 219 26 4,975 4,990

14 Asset Management Fees – Trust and its associate and Trust

Included in the asset management fees is an aggregate of 2,913,755 (2004: 3,474,538) units in the Trust that have been or will be issued to the Manager as payment of the performance component of management fees.

15 Income Tax Expense Trust and its associate Trust 2005 2004 2005 2004 S$’000 S$’000 S$’000 S$’000 Reconciliation of effective tax rate

Net income before tax 117,013 101,341 117,369 89,516

Income tax using Singapore tax rate of 20% 23,403 20,268 23,474 17,903 Non-tax deductible items 1,882 1,718 1,882 1,718 Income not subject to tax 71 (2,365) – – Tax transparency (25,356) (19,621) (25,356) (19,621) – – – –

180 > inspire Notes to the Financial Statements

16 Earnings Per Unit

Basic earnings per unit is based on:

Trust and its associate Trust 2005 2004 2005 2004 S$’000 S$’000 S$’000 S$’000

Net income before tax 117,013 101,341 117,369 89,516 Less: Income tax attributable to net income – – – – Net income after tax 117,013 101,341 117,369 89,516

Trust Number of Units ’000 ’000

Weighted average number of units - outstanding during the year 1,203,200 906,063 - placement of units 29,454 60,648 - issued as satisfaction of purchase consideration on investment property acquired – 60,648 - issued and issuable as payment of asset management fees paid in units 1,797 1,611 1,234,451 1,028,970

Diluted earnings per unit is the same as the basic earnings per unit as there are no signiﬁ cant dilutive instruments in issue during the year.

17 Changes in Accounting Policies

The accounting policies set out in note 2 have been applied in preparing the ﬁ nancial statements for the year ended 31 December 2005.

The adoption of principles in FRS 28 (revised) Investment in Associates resulted in the presentation of the fi nancial position, results, movements in Unitholders’ funds and cash fl ows of the Trust and its associate in the fi nancial statements in addition to those of the Trust.

The adoption of principles of FRS 39 Financial Instruments: Recognition and Measurement resulted in the Trust and its associate measuring its derivative fi nancial instruments as assets or liabilities at fair values. Previously, derivative fi nancial instruments were not recorded on the balance sheet. Where a derivative or non-derivative fi nancial instrument is an effective hedge in a cash fl ow hedge relationship, the change in fair value of the hedging instrument relating to the effective portion is recorded in equity.

The adoption of principles of FRS 39 resulted in the Trust and its associate recognising all its derivative ﬁ nancial instruments as assets or liabilities at fair value and decreasing the opening balance at 1 January 2005 of the hedging reserve by S$2,052,000. The 2004 comparatives have not been restated.

The change in accounting policies arising from adopting principles of FRS 39 has the following impact on the total return for the year:

Trust and its associate 2005 2004 S$’000 S$’000

Total return for the year before changes in accounting policies 410,781 261,010 Effects of adopting principles of FRS 39 - Share of swap losses of associate (484) – Total return for the year 410,297 261,010 inspire > 181 Notes to the Financial Statements

18 Issue Expenses Trust and its associate 2005 2004 S$’000 S$’000

Underwriting and selling commissions 8,150 4,503 Professional fees 439 338 Miscellaneous expenses 1,777 232 10,366 5,073

These expenses are deducted directly against the Unitholders’ funds. Included in the professional fees are non-audit fees paid and payable to auditors of the Trust amounting to S$128,000 (2004: S$118,000) for acting as independent reporting accountants and scrutineers and with respect to the issuance and placement of additional units in the Trust.

19 Signiﬁ cant Related Party Transactions – Trust and its associate and Trust

For the purposes of these fi nancial statements, parties are considered to be related to the Trust and its associate if the Trust and its associate has the ability, directly or indirectly, to control the party or exercise signifi cant infl uence over the party in making fi nancial and operating decisions, or vice versa, or where the Trust and its associate and the party are subject to common signifi cant infl uence. Related parties may be individuals or other entities. The Manager of the Trust is an indirect wholly-owned subsidiary of a substantial Unitholder of the Trust.

In the normal course of the operations of the Trust, asset management fees and trustee’s fees have been paid or are payable to the Manager and Trustee respectively.

During the fi nancial year, other than those disclosed elsewhere in the fi nancial statements, there were the following signifi cant related party transactions, which were carried out in the normal course of business on arm’s length commercial terms:

2005 2004 S$’000 S$’000

Asset enhancement works and consultancy fees to a related company of the Manager of the Trust 1,123 17,067 Property management fees and reimbursables to a related company of the Manager of the Trust 18,517 13,389 Rental and related income from related companies of the Manager of the Trust 4,991 2,986 Underwriting, advisory and acquisition fees to the Manager of the Trust and related companies of the Manager of the Trust 9,206 3,550

20 Financial Instruments

Financial risk management objectives and policies

Exposure to credit, interest rate and liquidity risks arises in the normal course of the Trust and its associate’s business. The Trust and its associate have written policies and guidelines, which set out its overall business strategies and its general risk management philosophy.

Credit risk

Credit risk is the potential ﬁ nancial loss resulting from the failure of a customer or a counterparty to settle its ﬁ nancial and contractual obligations to the Trust and its associate, as and when they fall due.

182 > inspire Notes to the Financial Statements

20 Financial Instruments (cont’d)

The Manager of the Trust and its associate has established credit limits for customers and monitors their balances on an ongoing basis. Credit evaluations are performed by the Manager of the Trust and its associate before lease agreements are entered into with customers. Cash and ﬁ xed deposits are placed with ﬁ nancial institutions which are regulated.

At 31 December 2005 and 2004, there were no signiﬁ cant concentrations of credit risk. The maximum exposure to credit risk is represented by the carrying value of each ﬁ nancial asset on the balance sheet.

Interest rate risk

The Trust and its associate’s exposure to changes in interest rates relates primarily to interest-earning ﬁ nancial assets and interest- bearing ﬁ nancial liabilities. Interest rate risk of the Trust and its associate is managed by the Manager of the Trust and the associate respectively, on an ongoing basis with the primary objective of limiting the extent to which net interest expense could be affected by adverse movements in interest rates.

Liquidity risk

The Manager of the Trust monitors and maintains a level of cash and cash equivalents deemed adequate by management to ﬁ nance its operations. In addition, the Manager also monitors and observes the CIS code issued by the MAS concerning limits on total borrowings.

Sensitivity analysis

In managing the interest rate risk, the Trust and its associate aims to reduce the impact of short-term ﬂ uctuations on its earnings.

As at 31 December 2005, it was estimated that a general increase in one percentage point in interest rates would reduce the Trust and its associate earnings by approximately S$280,000 (2004: S$280,000).

Effective interest rates and repricing analysis

In respect of interest-earning ﬁ nancial assets and interest-bearing ﬁ nancial liabilities, the following table indicates their effective interest rates as at 31 December 2005 and 2004 and the periods at which they reprice.

inspire > 183 Notes to the Financial Statements

20 Financial Instruments (cont’d)

Trust and its associate and Trust

Fixed interest rate maturing Note Effective Floating 1 to 5 After 5 interest rate interest years years Total % S$’000 S$’000 S$’000 S$’000 2005

Financial Liabilities

Term loan 9 3.11 – (172,000) (889,232) (1,061,232) Revolving credit facility 9 2.56 (28,000) – – (28,000) (28,000) (172,000) (889,232) (1,089,232)

2004

Financial Liabilities

Term loan 9 3.10 – (172,000) (460,000) (632,000) Revolving credit facility 9 1.94 (28,000) – – (28,000) (28,000) (172,000) (460,000) (660,000)

Fair value

Fair value is calculated based on the present value of expected future cash ﬂ ows relevant to the ﬁ nancial instrument, where the discount rate is computed from the market interest rates for the Trust.

Where discounted cash ﬂ ow techniques are used, estimated future cash ﬂ ows are based on management’s best estimates and the discount rate is a market-related rate for a similar instrument at the balance sheet date.

The carrying vales of the other ﬁ nancial assets and liabilities (including trade and other receivables, cash and cash equivalents, trade and other payabales and security deposits) approximate their fair values.

Carrying Percentage amount Fair value of net assets S$’000 S$’000 % 2005

Non-current

Term loans 1,061,232 1,043,257 45.7 Revolving credit facility 28,000 28,000 1.2

Carrying Percentage amount Fair value of net assets S$’000 S$’000 % 2004

Non-current

Term loans 632,000 644,667 39.7 Revolving credit facility 28,000 28,000 1.7

184 > inspire Notes to the Financial Statements

21 Segment Reporting – Trust and its associate

Segment information is presented in respect of the Trust and its associate’s business segments. The primary format, business segment’s, is based on its management and internal reporting structure.

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly income-earning assets and revenue, interest-bearing loans and borrowings and expenses, and related assets and expenses.

Segment capital expenditure is the total cost incurred during the year to acquire segment assets that are expected to be used for more than one year.

Business segments

The Trust and its associate is in the business of investing in the following shopping malls, which are considered to be the main business segments: Tampines Mall, Junction 8, Funan DigitaLife Mall (formerly known as Funan The IT Mall), IMM Building, Plaza Singapura, Bugis Junction and other investment properties.

Geographical segments

Geographical segment reporting has not been prepared because all nine malls are located in Singapore.

inspire > 185 1 Funan DigitaLife Mall DigitaLife Funan (formerly known as Mall Tampines Junction 8 Funan The IT Mall) IMM Building Plaza Singapura Notes to the Financial Statements 21 and its associate (cont’d) Segment Reporting – Trust segments Business income Property income and expenses rental 44,347 36,277 29,832 46,500 20,207 19,309 49,572 47,302 57,347 22,046 Gross Others revenue Car park income Gross 2004 2005 1,879 2,742 2,344 2004 2005 2005 2004 1,824 2004 906 2,001 2,466 1,067 3,081 978 48,203 40,367 33,484 50,496 22,673 21,854 52,658 49,768 61,517 23,930 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 Segment net property income 2,172 34,888 1,977 34,045 1,348 26,451 1,308 21,263 1,560 13,394 1,567 13,668 25,874 5 27,571 43,829 – 17,663 2,169 817

186 > inspire 4

4,210

4,552

S$’000

5 2004

200 S$’000

Total

Other Investment

000 S$’000

293,284 159,669 293,284

S$’

4 2005 2004

– 720 – 12,039 8,73 12,039 – 720 –

Properties

Bugis

219 26

117,013 101,3 117,013

Junction

5 200

– – 326 – 7,580 5,669 7,580 326 – – –

’000 S$’000

471 – 4,174 – 154,081 11 154,081 4,174 – 471 –

’d)

me 5,

xpenses

te 4,400 16,789 4,400 te

before 410,297 261,010 410,297

– Trust and its associate (cont – Trust

7,867 – 5,698 – 223,468 162,836 223,468 – 5,698 – 7,867

8,632 – 6,744 – 243,087 177,239 243,087 – 6,744 – 8,632

xpenses (41,687) (29,68 (41,687) xpenses

y income and e

S$ 200

Gross rental income

Car park income

Others 765

Gross revenue

Segment net property inco

Interest income 112,613 8 Unallocated e Share of proﬁ t of associa Share of proﬁ Net appreciation on Net income revaluation of investme Total return for the year Total properties taxation 410,297 261,010 Taxation – – – Taxation Total return for the year Total

21 Segment Reporting Business segments Business

Propert

Notes to the Financial Statements

inspire > 187 Total 3 to Surrender, the existing tenancy to Surrender, Properties 2 Junction 1 ust 2005, another 4.3% of the strata area in Hougang Plaza was acquired. ust 2005, iyu Singapore and The Seiyu, Ltd., in respect of the Surrender Premises by Seiyu Singapore to the Trust. Under the Agreement iyu Singapore and The Seiyu, Ltd., in respect of the Surrender Premises by Seiyu to Trust. pore to the Trust on 1 November 2005. pore to the Trust

and licence agreements in favour of the existing tenants licensees at Surrender Premises will be novated by Seiyu Singa 2 entered into an Agreement to Surrender with Se Bugis Junction was acquired on 31 October 2005. On 17 2005, the Trust 3 Other Investment Properties comprise Sembawang Shopping Centre, Hougang Plaza Units and Jurong Entertainment Centre. • • Sembawang Shopping Centre was acquired on 10 June 2005. • On 16 Aug of the strata area Hougang Plaza were acquired on 20 June 2005 and 30 respectively. 13.6% and 78.8% Jurong Entertainment Centre was acquired on 31 October 2005. Other segmental information Assets and liabilities 1 Plaza Singapura was acquired on 2 August 2004. Interest in an associate 64,928 1,089,232 associate borrowings 2,364 an 367 and 42,681 838,325 in fees 3,483,564 assets 2,879 taxation assets 193,456 loans assets payables 613,249 Interest management Unallocated liabilities: for Segment Total 9,121 interest-bearing liabilities 375 interest 7,978 asset 1,199,659 Unallocated Segment provision - 9,715 others 3,526 liabilities - 4,431 - 1,098,368 3,375,955 - 634,729 474,150 248,432 401,016 804,979 618,188 194,461 - 14,003 16,566 11,706 24,887 15,299 12,660 101,291 6,170 expenditure expenditure Total 312 123 82 15 53 10 19 properties: Capital Capital - Investment - Depreciation of plant and equipment Plant and equipment: off written - receivables Allowance for doubtful receivables/bad Write-off of assets (2) 1 16 16 22 (1) (3) 12 105 – 57 – 265 11 40 731 – – 458 7 154 – – 1,559 Notes to the Financial Statements 21 and its associate (cont’d) Segment Reporting – Trust segments Business DigitaLife (formerly Funan Mall Mall Tampines Junction 8 The IT Mall) Building Singapura known as Funan IMM Plaza Bugis Other Investment 2005 2005 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000

188 > inspire Notes to the Financial Statements

21 Segment Reporting – Trust and its associate (cont’d)

Business segments

Funan DigtaLife Mall (formerly known as Funan Plaza Tampines Mall Junction 8 The IT Mall) IMM Building Singapura Total 2004 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000

Assets and liabilities

Segment assets 549,366 397,677 202,905 353,294 738,999 2,242,241 Interest in an associate 69,825 Unallocated assets 49,600 Total assets 2,361,666

Segment liabilities 14,124 18,008 11,496 20,267 9,897 73,792

Unallocated liabilities: - interest-bearing loans and borrowings 660,000 - interest payables 61 - asset management fees 3,613 - trustee’s fees 175 - provision for taxation 367 - others 1,180 665,396 Total liabilities 739,188

Other segmental information

Depreciation of plant and equipment 14 24 6 44 15 103 Plant and equipment: - Capital expenditure 13 39 8 102 102 264 Investment properties: - Land premium paid – – – 55,703 – 55,703 - Capital expenditure 9,265 18,029 8,744 8,430 735,745 780,213 - Write-off of assets – – – 633 2 635 Allowance for doubtful receivables /bad receivables written off 4 5 (43) 1 34 1

inspire > 189 Notes to the Financial Statements

22 Commitments Trust and its associate and Trust 2005 2004 S$’000 S$’000 Capital commitments: - contracted but not provided for 3,445 4,738 - authorised but not contracted for 145,964 57,992 149,409 62,730

The Trust leases out its investment properties. Non-cancellable operating lease rentals are receivable as follows:

Trust and its associate and Trust 2005 2004 S$’000 S$’000

Within 1 year 243,355 168,283 After 1 year but within 5 years 230,669 176,185 After 5 years - 1,268 474,024 345,736

23 Contingent Liability

Pursuant to the tax transparency ruling from IRAS, the Trustee has provided a tax indemnity for certain types of tax losses, including unrecovered late payment penalties, that may be suffered by IRAS should IRAS fail to recover from Unitholders tax due or payable on distributions made to them without deduction of tax, subject to the indemnity amount agreed with the IRAS. This indemnity is applicable to distributions made out of the Trust’s income for the period from the date of the listing of the Trust to 1 August 2004. The amount of indemnity, as agreed with IRAS for any one year is limited to the higher of S$500,000 or 1.0% of the taxable income of the Trust for that year. Each yearly indemnity has a validity period of the earlier of seven years from the end of the relevant year of assessment and three years from the termination of the Trust.

24 Subsequent Event

Subsequent to the year ended 31 December 2005, the Manager declared distribution of S$25,800,362 for the Trust in respect of the period 31 October 2005 to 31 December 2005.

25 Financial Ratios 2005 2004 % %

Expenses to weighted average net assets 1 0.92 1.06

Portfolio turnover rate 2 – –

1 The annualised ratios are computed in accordance with the guidelines of Investment Management Association of Singapore. The expenses used in the computation relate to expenses of the Trust, excluding property expenses and interest expense.

2 The annualised ratio is computed based on the lesser of purchases or sales of underlying investment properties of the Trust expressed as a percentage of daily average net asset value.

190 > inspire Unitholders Statistics

STATISTICS OF UNITHOLDINGS AS AT 1 MARCH 2006

Issued and Fully Paid Units 1,380,569,714 units (voting rights : 1 vote per unit) Market Capitalisation $3,230,533,131 (based on closing unit price of S$2.34 on 1 March 2006)

Distribution of Unitholdings Size of Holdings No. of Unitholders % No. of Units % 1 - 999 144 1.77 45,064 0.00 1,000 - 10,000 5,685 69.76 23,592,018 1.71 10,001 - 1,000,000 2,289 28.09 116,158,176 8.41 1,000,001 and above 31 0.38 1,240,774,456 89.88 8,149 100.00 1,380,569,714 100.00

Location of Unitholders Country No. of Unitholders % No. of Units % Singapore 8,019 98.40 1,373,621,684 99.50 Malaysia 48 0.59 1,166,350 0.08 Others 82 1.01 5,781,680 0.42 8,149 100.00 1,380,569,714 100.00

Twenty Largest Unitholders S/No. Name No. of Units % 1 Pyramex Investments Pte Ltd 284,181,553 20.58 2 Citibank Nominees Singapore Pte Ltd 208,671,560 15.11 3 Rafﬂ es Nominees Pte Ltd 184,497,148 13.36 4 Albert Complex Pte Ltd 147,000,000 10.65 5 DBS Nominees Pte Ltd 121,611,731 8.81 6 NTUC Fairprice Co-Operative Ltd 71,070,000 5.15 7 HSBC (Singapore) Nominees Pte Ltd 67,775,440 4.91 8 United Overseas Bank Nominees Pte Ltd 37,926,696 2.75 9 Premier Healthcare Services International Pte Ltd 33,000,000 2.39 10 Alphaplus Investment Pte Ltd 25,330,000 1.83 11 DB Nominees (S) Pte Ltd 11,964,000 0.87 12 Morgan Stanley Asia (Singapore) Securities Pte Ltd 10,582,914 0.77 13 CapitaMall Trust Management Limited 3,969,705 0.29 14 Baiduri Bank Berhad 3,700,000 0.27 15 BNP Paribas Nominees Singapore Pte Ltd 3,351,100 0.24 16 Merrill Lynch (Singapore) Pte Ltd 3,189,609 0.23 17 The Asia Life Assurance Society Ltd-Par Fund 3,114,000 0.23 18 Yong Loo Lin Holdings Private Limited 3,000,000 0.22 19 DBS Vickers Securities (S) Pte Ltd 1,995,900 0.14 20 Yong Ying-I 1,500,000 0.11 1,227,431,356 88.91

inspire > 191 Unitholders Statistics

List of Directors’ Interest as at 21 January 2006

Name No. of CMT Units Held

Hsuan Owyang Nil

Liew Mun Leong 825,000 (Deemed)

Pua Seck Guan Nil

James Glen Service Nil

David Wong Chin Huat 110,000 (Direct) 30,000 (Deemed)

S Chandra Das 55,000 (Direct)

Hiew Yoon Khong 267,000 (Direct)

Kee Teck Koon 100,000 (Direct)

Olivier Lim Tse Ghow 132,000 (Direct) 110,000 (Deemed)

List of Substantial Unitholders as at 1 March 2006

Name No. of Units Held % NTUC FairPrice Co-operative Limited Direct: 71,070,000 units 5.15 Deemed: 25,330,000 units 1.83 held by Alphaplus Investments Pte Ltd

The Capital Group Companies, Inc. Deemed: 84,262,700 units 6.10

Albert Complex Pte Ltd (“ACPL”) Direct: 147,000,000 units 10.65

Pyramex Investments Pte Ltd (“PIPL”) Direct: 284,181,553 units 20.58

CapitaLand Retail Limited Deemed: 464,181,553 units 33.62 -147,000,000 units held by ACPL - 284,181,553 units held by PIPL - 33,000,000 units held by Premier Healthcare Services International Pte Ltd (“PHSIPL”)

CapitaLand Limited Deemed: 468,151,258 units 33.91 - 147,000,000 units held by ACPL - 284,181,553 units held by PIPL - 33,000,000 units held by PHSIPL - 3,969,705 units held by the Manager

FREEFLOAT

Based on the information made available to the Manager, no less than 40% of the units in CMT were held in the hands of the public as at 1 March 2006. Accordingly, Rule 723 of the listing Manual of the SGX-ST has been complied with.

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Related Party Transactions

The transactions entered into with related parties during the ﬁ nancial year, which fall under the Listing Manual and the CIS Code, are as follows:

Aggregate value of all related party transactions during the ﬁ nancial period under review (excluding transactions of less Name of Related Party than S$100,000 each)

S$’000 CapitaLand Limited and its subsidiaries or associates - Management fees 1 14,948 - Property management fees & reimbursables 18,517 - Acquisition fees related to acquisitions of Sembawang Shopping Centre, Hougang Plaza Units, Jurong Entertainment Centre and Bugis Junction 7,706 - Project management and consultancy fees for asset enhancement works 2,247 - Acquisition of Bugis Junction 580,800 - Fee in consideration of backstop arrangement 1,500

Temasek Holdings (Private) Limited and its associates

- Rental and service income 1,083 - Utilities 3,480 - General Maintenance 440

1. For the purposes of Clause 907 of the Listing Manual of the SGX-ST, in arriving at this ﬁ gure, the market price of the CMT units (being the closing price of the units traded on the SGX-ST on the relevant date of issue of the units) issued to the Manager for the performance component of its management fees, was used to determine the amount of the aggregate asset management fees paid to the Manager for the period from 1 January 2005 to 31 December 2005. A total of 2,913,755 CMT units amounting to an aggregate of S$6,915,574 have been or will be issued to the Manager as payment of the performance component of the asset management fees (as computed pursuant to the Trust Deed) for the period from 1 January 2005 to 31 December 2005. In respect of the period from 1 January 2005 to 31 March 2005, a total of 726,487 units, comprising 516,348 and 210,139 CMT units at issue prices of S$1.511025 and S$ 2.0147* per unit respectively, were issued on 6 May 2005 to the Manager. The market price at the date of issue was S$2.23 per unit and the aggregate market value of these units was S$1,620,066 based on this market price. In respect of the period from 1 April 2005 to 30 June 2005, a total of 648,420 units, comprising 458,799 and 189,621 CMT units at issue prices of S$1.775625 and S$2.3675* per unit respectively, were issued on 3 August 2005 to the Manager . The market price at the date of issue was S$2.60 per unit and the aggregate market value of these units was S$1,685,892 based on this market price. In respect of the period from 1 July 2005 to 30 September 2005, a total of 667,601 CMT units, comprising 452,678 and 214,923 CMT units at issue prices of S$1.7778 and S$2.3704* per unit respectively, were issued on 4 November 2005 to the Manager. The market price at the date of issue was S$2.34 per unit and the aggregate market value of these units was S$1,562,186 based on this market price. In respect of the period from 1 October 2005 to 31 December 2005, a total of 871,247 CMT units, comprising 504,690 and 366,557 CMT units at issue prices of S$1.6567 and S$2.2090* per unit respectively, were issued on 8 February 2006 to the Manager. The market price at the date of issue was S$2.35 and the aggregate market value of these units was S$2,047,430 based on this market price.

* Based on the volume weighted average traded price for a Unit for all trades on the SGX-ST in the ordinary course of trading on the SGX-ST for the last ten business days of the relevant period in which the management fee accrues.

Save as disclosed above, there were no additional Related Party Transactions (excluding transactions of less than S$100,000 each) entered into during the ﬁ nancial period under review.

On 16 February 2004, CMT announced that the SGX-ST has on 10 February 2004 granted a waiver to CMT from rules 905 and 906 of the SGX-ST’s Listing Manual in relation to payments for management fee, payments for acquisition and divestment fees, payments of property management fee, reimbursement to the property manager in respect of payroll and related expenses as well as payments of trustee’s fee not to be included in the aggregated value of total related party transactions as governed by rules 905 and 906 of the Listing Manual.

Please also see Signiﬁ cant Related Party Transactions on note 19 in the ﬁ nancial statements.

Subscription of CMT Units

For the ﬁ nancial year ended 31 December 2005, an aggregate of 176,498,458 CMT units were issued and subscribed for. As at 31 December 2005, 1,379,698,467 CMT units were in issue and outstanding. On 8 February 2006, 871,247 CMT units were issued to the Manager as part payment of the performance component of its asset management fees for the fourth quarter of 2005.

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