BECAUSE TOMORROW Matters ANNUAL REPORT 20 20 CORPORATE PROFILE CapitaLand Integrated Commercial Trust (CICT or the Trust) is the first and largest real estate investment trust (REIT) listed on Singapore OUR MISSION Exchange Securities Trading Limited (SGX-ST) with a market capitalisation To deliver stable distributions of S$14.0 billion as at 31 December 2020. It made its debut on SGX- and sustainable total returns to ST as CapitaLand Mall Trust (CMT) in July 2002 and was renamed CICT Unitholders in November 2020 following the merger with CapitaLand Commercial Trust (CCT). CICT owns and invests in quality income-producing assets primarily used for commercial (including retail and/or office) purpose, located predominantly in Singapore. As the largest proxy for Singapore commercial real estate, CICT’s portfolio comprises 22 properties in OUR VALUES Singapore and two in Frankfurt, Germany. CICT is managed by CapitaLand Integrated Commercial Trust Management Limited, which is a wholly owned subsidiary of Singapore-listed CapitaLand › Winning Mindset Limited, one of Asia's largest diversified real estate groups. ABOUT THE REPORT › Integrity CICT Annual Report 2020 has been prepared in accordance with the International Integrated Reporting Council (IIRC) Framework and the Global Reporting Initiative (GRI) Standards: Core option. CICT welcomes stakeholders to send comments concerning our disclosures to [email protected]. A copy of CICT's integrated report can also be downloaded from › Respect www.cict com.sg. Any discrepancies in the table and charts between the listed figures and totals thereof are due to rounding. Where applicable, figures and percentages are rounded to one decimal place. All necessary safe management measures were adhered to during photography and videography sessions conducted for the purpose of the Annual Report and Annual General Meeting, in accordance with guidelines issued by the relevant authorities. › Enterprising BECAUSE TOMORROW Matters Underpinning the breadth of CapitaLand’s activities is our continuous dialogue with our stakeholders which helps to shape our business as we aim to build sustainable communities. We place significance on our conversations and share our story with care and consideration for all ANNUAL REPORT 20 involved. This annual report is part of that process and the motif we 20 have chosen for this year’s report reflects our focus on maintaining communication with our stakeholders with transparency and clarity. CAPITALAND INTEGRATED COMMERCIAL TRUST (CICT), FORMERLY CMT, WAS CREATED IN RESPONSE TO EVOLVING REAL ESTATE TRENDS, SHIFTING MARKET OPERATING ENVIRONMENT AND CHANGING STAKEHOLDER DEMANDS. WE AIM TO GENERATE STABLE AND SUSTAINABLE RETURNS, UNDERPINNED BY OUR COMMITMENT TO ENVIRONMENT, SOCIAL AND GOVERNANCE (ESG) ISSUES. BECAUSE TOMORROW MATTERS, WE TRANSFORM TODAY TO ENSURE THAT WE ARE FUTURE-READY. BECAUSE TOMORROW MATTERS CapitaLand supported us in remapping our space requirements and provided us with various innovative options that meet our needs both in the short and medium term. WE ARE AGILE AND RESPONSIVE TO GUAN YEOW KWANG BUSINESS DISRUPTIONS AND GLOBAL Singapore Branch CEO Managing Director TRENDS. WE PROACTIVELY PROVIDE Head, Asia & Oceania Administration FLEXIBLE OPTIONS TO OUR TENANTS Mizuho Bank, Ltd. TO HELP THEM NAVIGATE THROUGH CHALLENGES. WE ARE PROACTIVE AND AGILE BECAUSE CHANGE IS THE NEW NORMAL WE CREATE PORTFOLIO VALUE TO ENSURE THE RELEVANCE AND PERFORMANCE OF OUR ASSETS THROUGH MARKET CYCLES. STAKEHOLDERS' TRUST IN US DEEPENS AS WE OVERCOME ADVERSITY AND CYCLES TO EMERGE STRONGER. WE VALUE RESILIENCE BECAUSE TRUST IS BUILT OVER TIME I have always been impressed by the track record and quality of the CMT and CCT management as well as their open and transparent communication with investors. With a more diversified asset base and larger financial power in CICT, investors like me will be assured of stability while navigating through this uncertain world. GERARD AH HOT A retail Unitholder WE CONTINUE TO FOCUS ON GROWTH WITH DISCIPLINE AND REINFORCE OUR PRESENCE IN SINGAPORE, LEVERAGING OPPORTUNITIES TO GENERATE SUSTAINABLE RETURNS FOR CICT's in-depth OUR UNITHOLDERS. experience and expertise, extensive scale in retail and office properties WE SEEK GROWTH in Singapore and balance sheet will BECAUSE GENERATING enable the REIT to embark on SUSTAINABLE TOTAL acquisitions and redevelopments in RETURN IS OUR GOAL strategic locations. Jonathan KOH Director, Research UOB KAY HIAN PTE LTD Genuine and authentic focus on all ESG outcomes is mission critical for the future of our planet, successful commercial activities and personal well-being. TONY LEWIS A volunteer at Funan’s Edible Garden WE ARE COMMITTED TO UPHOLDING OUR ESG PRINCIPLES AND ACHIEVING OUR SUSTAINABILITY GOALS, RECOGNISING THAT OUR EFFORTS TODAY WILL GO A LONG WAY TO CREATE A BETTER TOMORROW. WE COMMIT TO ESG BECAUSE WE WANT A BETTER TOMORROW 10 11 CAPITALAND INTEGRATED COMMERCIAL TRUST • ANNUAL REPORT 2020 Because TOMORROW Matters Every day is important. That is why we make it a point to treat every customer's visit like it is their first - good food with the freshest ingredients BECAUSE As a forward-thinking company complemented by good service with a focus on global every day. sustainability, tomorrow matters greatly to us. Building upon our Takanori Takegawa TOMORROW expertise, we are expanding Director our product lines beyond Sushiro GH Singapore Pte Ltd anti-microbial coating and air (Tenant) purification and providing value- MATTERS added services to our customers. Beyond products and services, support from like-minded Tomorrow could unfold in various partners is essential for us to realise our green living ambition. scenarios. If we have conviction If there isn’t tomorrow then of our vision for tomorrow after all hopes will simply vanish. studying the various forces May Cheng Head of Sales But to live tomorrow well we shaping the potential outcome, De-Novo Private Limited must prepare for it well today then we should start preparing (Business Partner) by becoming more innovative, and positioning ourselves to collaborative and incisive. benefit from the journey towards tomorrow. Tomorrow absolutely matters. Guan Yeow Kwang Singapore Branch CEO For businesses struggling with Jonathan Koh Managing Director COVID-19, what we do today Director, Research At the Coalition team, tomorrow Head, Asia & Oceania Administration will make a lot of difference to UOB Kay Hian Pte Ltd is a keyword for us. Our vision Mizuho Bank, Ltd. (Tenant) the survival of our companies. (Analyst) is to always be on the forefront For TSMP, we aim to reinvent of technology and innovation ourselves, in part by ramping up and to achieve this, we our client services. It is vital that constantly challenge ourselves our clients receive customised to reimagine, reinvent and Investing is always about solutions to their legal issues. rejuvenate our omnichannel Never lose sight of what is anticipating the future. It is Collaborating with the right retail experiences to be ever- really important in life for crucial to understand how the business partners is also an ready for the consumer of all of us - good physical and company in which we invest imperative. There have been tomorrow. mental health, the well-being will face the secular trends like talks about whether Singapore of our communities and our ecommerce, more work from businesses still need offices and Fuelled by our drive in environment and to never, ever, home or sustainable energies. It whether working from home is partnering retailers to unlock forget to be grateful and thankful is a balance between quality of going to be permanent. I think their business potential through for who we are, where we are and execution in the short term and how we work is going to be data-driven insights for sales what we have. Many people are long term strategies in view of more flexible in the future, but and marketing optimisation, and not so privileged and fortunate. this evolving environment. We an office will remain critical. married with our dedication in expect the management to be It is a place where you can fortifying a seamless offline- Because tomorrow matters, I forward thinking and innovative aggregate tenants, people can to-online shopping experience, want to enable my children to be even if mistakes can be made learn from one another and we are confident to strengthen aware and confident enough to along the way. For instance, meet to share ideas, and grow CapitaLand Retail’s digital make a positive difference in our I appreciate the CapitaStar the culture of the company capabilities as a retail ecosystem community, for our environment platform to capture the online together in a close and provider while defining the retail and for those less fortunate sales of our tenants. The new collegiate ecosystem. landscape of the future. and to be massively happy and mall concept at Funan is also a fulfilled whilst doing it! testimony of innovation. Stefanie Yuen Thio Reuben Yong Joint Managing Partner Head, Coalition TSMP Law Corporation Tony Lewis CapitaLand Singapore Gerard Ah Hot (Tenant) A Volunteer at Funan’s Edible Garden (Staff) A Unitholder of CICT 12 CAPITALAND INTEGRATED COMMERCIAL TRUST • ANNUAL REPORT 2020 CONTENTS 13 2020 HIGHLIGHTS 18 46 121 YEAR IN BRIEF TRUST MANAGEMENT TEAM PROPERTIES 20 47 151 GLOBAL TRENDS CORPORATE ENVIRONMENT GOVERNANCE 160 78 STakeHOLDERS ENTERPRISE RISK AND COMMUNITIES 21 MANAGEMENT MESSAGE TO UNITHOLDERS 193 99 FINANCIAL FINANCIAL STATEMENTS