CapitaLand Investment Limited - Annual Report 2021

FY 2021 Performance Review BUSINESS PERFORMANCE Singapore is CLI’s home base. We are the city-state’s leading private landlord, managing the largest portfolio of shopping malls and Grade A offices in the Central Business District (CBD) and business parks. With over 40 years of operating expertise that began before the listing of CapitaLand, CLI’s diversified strengths allows us to play a key role in reimagining Singapore’s cityscape. Most of our assets in Singapore are held through our listed fund vehicles, largely via CapitaLand Integrated Commercial Trust (CICT) and Ascendas Reit. Key Project Completions in 2021 In November 2021, we completed CapitaSpring, a 51-storey Grade A integrated development, which is jointly owned by CICT and two other partners - CapitaLand Development and Mitsubishi Estate. The building was redeveloped from a multi-storey carpark at Singapore’s Raffles Place CBD into an integrated development with Grade A office, ancillary retail and serviced residence components, rejuvenating the heart of Singapore’s CBD. CapitaSpring also houses the iconic Market Street Hawker Centre, as well as Singapore’s tallest sky observatory deck and urban farm, and a 35-metre high expansive spiraling botanical promenade located 100 metres above ground. As at 31 December 2021, CapitaSpring attained a healthy 91.5% of committed occupancy. Singapore During the year, Ascendas Reit also completed the built- to-suit business park property for Grab’s Headquarters at one-north. The property is fully leased to Grab for 11 years. Sky Garden at CapitaSpring, Singapore Sale of 75% Stake in Galaxis to Ascendas Reit In May 2021, CLI announced the divestment of its full stake in Galaxis, a state-of-the-art business park at Fusionpolis, based on an agreed property value S$720 million1. Having already acquired 25% of the property in 2020, the sale gave Ascendas Reit full ownership of the asset and unlocked approximately S$75 million of net gain for CLI. 1 On 100% basis. FY 2021 Total Investments S$540 million FY 2021 Total Divestments ~S$2.0 billion Key Transactions in FY 2021 FY 2021 S$38.9 billion Portfolio value¹ 127 Number of properties 4.7 million sqm Gross floor area (excludes lodging assets) PORTFOLIO SNAPSHOT Shopper Traffic -3.7% YoY Tenants’ Sales (per sq ft) +17.3% YoY Average Rent +3% QoQ 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 OFFICE 91 91 91 79 90 84 72 79 89 81 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 88 87 88 154 89 146 137 154 90 145 NEW ECONOMY RETAIL 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 98 97 97 207 96 216 186 205 97 191 NPI (S$ milion) Occupancy (%) 79 Robinson Road, a 29-storey Grade A office building in the Tanjong Pagar sub-market of Singapore’s Central Business District was officially opened in January 2022. As at 31 December 2021, it boasted a healthy occupancy of approximately 92.9%. On 25 March 2022, CLI announced the divestment of the property to CICT and COREF. FY 2021 Operating Performance Overall, the operating performance of Singapore’s investment properties continued to improve, registering a year-on-year growth in occupancy and net property income. At the end of 2021, there was a noticeable increase in office leasing enquiries for expansion and new set up. Newoffice leases and renewals were signed at above market rents, albeit below the respective expiring rents in FY 2021. We observed an improving trend in retail rental reversion in 2021, although downtown malls were more impacted by the negative reversions than their suburban counterparts. Our early adoption of a retail digital strategy that integrates online to offline (O2O) shopping experiences through the CapitaStar digital platform has also contributed to the resilience of CLI’s retail business. In FY 2021, the Group registered higher tenant sales despite a decrease in shopper traffic. As the economy gradually reopens and more people visit shopping malls, we expect to see higher demand in retail space, which will narrow the gap between signing and expiring rents. FY 2021 Transactions FY 2021 Divestments Value (S$ million) Entity 11 Changi North Way 16.0 Ascendas Reit Singapore Science Park 1 103.2 Ascendas Reit 75% stake in Galaxis 720.01 CLI One George Street 1,175.02 CICT 1 On 100% basis. 2 Based on 100% property value. CICT received 50% of the sale consideration, amounting to approximately S$640.7 million. Galaxis, Singapore 1 Refers to total sum of CLI’s owned properties’ valuations as at 31 December 2021. CapitaLand Investment Limited 48