CAPITALAND LIMITED Annual Report 2018 WE ARE REIMAGINING THE FUTURE REAL ESTATE REIMAGINED At CapitaLand, we view the world with childlike awe, excited by the wonderful things we see. New opportunities are everywhere, waiting to be developed. CapitaLand is reimagining the future of real estate—creating unique environments that enrich people’s lives. We have the passion, innovation and vision to turn promising possibilities into long-term growth. For us. Our customers. And our shareholders. Artist‘s impression of Raffles City Chongqing in China Disclaimer: The image on the cover is for aesthetic purpose only. Cyclists are discouraged from using virtual reality headsets while cycling on the roads and other areas which may pose dangers to themselves and other users. CORPORATE CONTENTS PROFILE OVERVIEW 06 Global Presence CapitaLand Limited (CapitaLand) is one 08 2018 Highlights of Asia’s largest real estate companies. 09 Significant Scale Achieved Headquartered and listed in Singapore, 10 5-Year Financial Summary it is an owner and manager of a global 11 Group Business Structure portfolio worth over S$100 billion as at 31 12 Message to Shareholders December 2018, comprising integrated 20 2018 Year in Brief developments, shopping malls, lodging, offices, homes, real estate investment CORPORATE GOVERNANCE trusts (REITs) and funds. CapitaLand’s & TRANSPARENCY market capitalisation is approximately 22 Board of Directors S$13 billion as at 31 December 2018. 30 Senior Management Present across more than 180 cities in 37 Corporate Governance over 30 countries, the Group focuses on 70 Enterprise Risk Management Singapore and China as core markets, 74 Investor & Media Relations while it continues to expand in markets 78 Awards & Accolades such as Vietnam, Europe and the U.S.. SUSTAINABILITY CapitaLand’s competitive advantage is 82 Sustainability Management its significant asset base and extensive market network. Coupled with strong BUSINESS REVIEW design, development and operational 90 Performance Overview capabilities, the Group develops and 97 CapitaLand Singapore, Malaysia & Indonesia manages high-quality real estate 99 CapitaLand China products and services. It also has one 101 CapitaLand Vietnam of the largest investment management 102 CapitaLand International businesses in Asia and a stable of five 103 Retail REITs listed in Singapore and Malaysia 105 Commercial – CapitaLand Mall Trust, CapitaLand 106 Lodging Commercial Trust, Ascott Residence 107 Investment Management Trust, CapitaLand Retail China Trust and CapitaLand Malaysia Mall Trust. PORTFOLIO DETAILS 108 Integrated Developments 111 Shopping Malls 113 Lodging - Serviced Residences 118 Lodging - Multifamily 119 Commercial 120 Self Storage 121 Residential FINANCIALS & ADDITIONAL INFORMATION 125 Financial Statements Any discrepancies in the tables and charts 289 Economic Value Added Statement between the listed figures and totals thereof are 290 Value Added Statement due to rounding. Where applicable, figures and percentages are rounded to one decimal place. 291 Supplemental Information 298 Shareholding Statistics Corporate Information CapitaLand Limited Annual Report 2018 1 OUR VISION OUR CORE VALUES To be a leading global enterprise that enriches Respect: We believe in mutual trust and respect people and communities through high-quality at all levels. This is fundamental to a high- real estate products and services. performance culture that embraces diversity and teamwork as One CapitaLand. Integrity: We embrace the highest standards OUR MISSION of integrity. We have the courage to do what is right, and earn the trust of all our stakeholders. Customers: We create great customer value and experiences through high-quality products and Creativity: We constantly innovate to enhance services. value and stay ahead. People: We develop high-performing people and Excellence: We pursue excellence and persevere teams through rewarding opportunities. in everything we do. Investors: We deliver sustainable shareholder returns and build a strong global network of capital partners. Communities: We care for and contribute to the economic, environmental and social development of communities. CapitaLand Limited Annual Report 2018 Suzhou Center Mall, China 2 CapitaLand Limited Annual Report 2018 3 VISION GUIDES OUR FUTURE. In 2018, CapitaLand continued to build its global presence, guided by its vision of becoming a leading global enterprise in real estate products and services. Acquisitions helped fill our development pipeline beyond Singapore and China. And we expanded into the deep, scalable U.S. multifamily asset class—extending our global investment portfolio and creating value for our stakeholders. Group Managed Return on Real Estate Assets1 Equity S$100.1 9.3% billion 1 Refers to value of all real estate managed by CapitaLand Group entities stated at 100% of the property carrying value. OVERVIEW GLOBAL PRESENCE As at 31 December 2018 210 Cities including 21 cities with United States of America CapitaLand Hope 31 Schools Countries China Wuhan INDICATORS Beijing Wuhu Integrated Developments Changsha Wuxi Chengdu Xiamen Shopping Malls Chifeng Xi’an Lodging Chongqing Xuzhou Dalian Yichang Offices Dongguan Yinchuan Homes Duolun Zhengzhou Foshan Zhongxiang Investment Management Guangyuan Zhuhai Raffles City Developments Guangzhou Zibo Haikou Zigong CapitaLand Hope Schools Handan Hangzhou Fiji Harbin Suva Madiun Hefei Makassar Hohhot India NORTH AMERICA Malang Honghezhou Bangalore Manado United States of America Hong Kong Chennai Medan Aurora Hotan Gurgaon Padang Corona Huanggang Hyderabad Palangkaraya Denver Huizhou Jalandhar Palembang Everett Huzhou Mumbai Pekanbaru Kirkland Kunming Nagpur Pontianak Lacey Kunshan Sri City Samarinda Lakewood Lechang Semarang Milwaukie Leshan Indonesia Solo New York Lishui Ambon Sukabumi Portland Macau Bali Surabaya Sunnyvale Macheng Balikpapan Tanjung Pandan Maoming Bandung Tanjung Pinang ASIA PACIFIC Mianyang Bangka Island Ungaran Australia Mianzhu Banjarmasin Yogyakarta Adelaide Nanjing Banyuwangi Brisbane Nantong Batam Japan Canberra Ningbo Bogor Fukuoka Darwin Pu'er Bojonegoro Funabashi Hobart Qingdao Cikarang Hiroshima Melbourne Qingyuan Cilacap Kobe Perth Rizhao Jakarta Kyoto Sydney Shanghai Jambi Nagoya Shangluo Jember Osaka Cambodia Shaoxing Karawang Saitama Phnom Penh Shenyang Kendari Sapporo Shenzhen Kupang CapitaLand Limited Annual Report 2018 Tokyo Suzhou Lampung 6 Tianjin Lombok Island OVERVIEW United Kingdom Ireland Belgium France Germany Georgia Spain Turkey Japan South Korea China Bahrain Qatar United Arab Emirates Laos Oman Myanmar Saudi Arabia Cambodia Thailand Philippines India Vietnam Ghana Malaysia Singapore Indonesia Fiji Australia New Zealand Laos Singapore France GULF COOPERATION Vientiane Singapore Cannes COUNCIL COUNTRIES Grenoble Malaysia South Korea Lille AND OTHERS Cyberjaya Busan Lyon Bahrain Iskandar Puteri Jeju Marseille Manama Kota Kinabalu Seoul Montpellier Kuala Lumpur Nantes Oman Kuantan Thailand Paris Muscat Kuching Bangkok Strasbourg Melaka Pattaya Toulouse Qatar Miri Sri Racha Doha Penang Georgia Petaling Jaya Vietnam Tbilisi Saudi Arabia Putrajaya Binh Duong Abha Shah Alam Danang Germany Al Khobar Hai Phong Berlin Jeddah Myanmar Halong City Frankfurt Makkah Yangon Hanoi Hamburg Riyadh Ho Chi Minh City Munich New Zealand Hung Yen Turkey Auckland Nha Trang Ireland Istanbul Christchurch Tan An Dublin Wellington Viet Tri United Arab Spain Emirates Philippines Barcelona Abu Dhabi AFRICA Dubai Bacolod Ghana Cebu Accra United Kingdom Davao Liverpool Iloilo EUROPE London Manila CapitaLand Limited Annual Report 2018 Belgium Quezon City Brussels 7 OVERVIEW 2018 HIGHLIGHTS GROUP MANAGED EARNINGS BEFORE PROFIT ATTRIBUTABLE REAL ESTATE ASSETS INTEREST & TAX TO SHAREHOLDERS S$100.1 S$4,145.0 S$1,762.5 billion million million S$88.8 billion in 2017 Increased 26% YoY Increased 12% YoY OPERATING NET TANGIBLE ASSETS DIVIDEND PATMI PER SHARE PER SHARE S$872.2 S$4.40 12 cents million S$4.20 in 2017 12 cents in 2017 Decreased 6% YoY NET DEBT RETURN TO EQUITY ON EQUITY 0.56 times 9.3% Up from 0.49 times Up from 8.6% in 2017 in 2017 CapitaLand Limited Annual Report 2018 8 OVERVIEW SIGNIFICANT SCALE ACHIEVED REVENUE UNDER TOTAL HOME UNITS OFFICE MANAGEMENT CONSTRUCTED (SINCE 2000) TENANTS S$8.9 ~98,000 ~1,700 billion of which Rental RUM is S$5.2 billion GROSS TURNOVER SHOPPER TRAFFIC RETAIL SALES OF RETAILERS IN OUR MALLS LEASES S$11.4 ~1.2 >15,000 billion billion UNIQUE SERVICED RESIDENCE CUSTOMERS >1.3 million CapitaLand Limited Annual Report 2018 9 OVERVIEW 5-YEAR FINANCIAL SUMMARY 2018 20171 2016 2015 2014 (A) INCOME STATEMENT (S$ million) Revenue 5,602.4 4,618.2 5,252.3 4,761.9 3,924.6 Earnings before interest and tax (EBIT) 4,145.0 3,302.2 2,359.5 2,316.0 2,436.9 Profit attributable to shareholders (PATMI) 1,762.5 1,569.6 1,190.3 1,065.7 1,160.8 Operating PATMI 872.2 927.2 865.3 823.6 705.3 (B) BALANCE SHEET (S$ million) Investment properties 39,446.0 36,479.4 18,998.4 19,427.5 17,149.2 Development properties for sale and stocks 5,128.6 3,977.0 4,837.1 6,936.3 7,673.7 Associates and joint ventures 10,179.6 10,205.4 12,617.3 12,858.1 12,780.9 Cash and cash equivalents 5,059.8 6,105.3 4,792.6 4,173.3 2,749.4 Other assets 4,833.6 4,772.1 4,495.4 3,657.4 3,760.3 Total assets 64,647.6 61,539.2 45,740.8 47,052.6 44,113.5 Equity attributable to owners of the Company 18,952.7 18,412.9 17,604.8 17,905.3 16,758.0 Total borrowings 23,633.9 21,694.9 14,852.4 16,058.5 15,985.8 Non-controlling interests and other liabilities 22,061.0 21,431.4 13,283.6