CapitaLand Investment Limited - Annual Report 2021

FY 2021 Performance Review FY 2021 Performance Review BUSINESS PERFORMANCE BUSINESS PERFORMANCE India International CLI actively explores opportunities across various asset classes in key gateway cities in “International” markets, including developed Asian markets (“Other Asia”) besides Singapore. This supports CLI’s strategy to build a resilient and diversified portfolio comprising multifamily, business parks, offices, logistics and data centres properties across developed markets outside Singapore. Majority of the assets are held through listed and private vehicles, which include prime and suburban office assets as well as new economy assets in Other Asia (Japan and South Korea) and International (Australia, Europe and USA). Key 2021 Updates and Transactions Resilient USA Multifamily Portfolio despite the COVID-19 Pandemic • CLI’s portfolio of 16 operating multifamily assets in USA, which was acquired in September 2018, remained resilient despite the ongoing COVID-19 pandemic, achieving strong occupancy of 95% and positive NPI growth YoY. • As part of the multifamily value-add programme, the portfolio continued its phased unit interior renovations in FY 2021, which resulted in rental uplifts and approximate payback period of five years for completed renovated units. Exited Japan Retail Sector and Redeployed Capital into New Economy Sector • In July 2021, CLI successfully exited non-core retail sector in Japan with the sale of Olinas Mall and Seiyu & Sundrug Higashimatsuyama, Greater Tokyo in Japan for JPY42 billion (S$520 million). • Capital was redeployed to strengthen CLI’s presence in the logistics sector, as follows: A logistics facility in Ibaraki City, Osaka, Japan • CLI acquired its second logistics development in Japan for JPY7.5 billion (S$90.8 million) in July 2021. • The freehold site is to be developed into a four- storey modern logistics facility. PORTFOLIO SNAPSHOT FY 2021 S$17.9 billion Portfolio value¹ 248 (of which 42% are Lodging assets) Number of properties 2.5 million sqm Gross floor area (excludes lodging assets) • The project is part of the ongoing collaborationwith Mitsui & Co. Real Estate Ltd and the construction is expected to be completed in 3Q 2023. A logistics facility in Hamura City, Tokyo, Japan • Acquisition of a freehold site in Hamura City, Tokyo for JPY9.4 billion (S$111.8 million) in January 2022 to develop a modern logistics facility. • Strategically located within the proximity of Central Tokyo as well as near the main expressways that connect to major cities in Japan. • Construction is expected to be completed in 2Q2024. Artist’s Impression of the Logistics facility inHamura City, Tokyo, Japan FY 2021 Total Investments S$4,339 million FY 2021 Total Divestments S$1,522 million FY 2021 Operating Performance Through active tenant engagement, we have leased and renewed approximately 3.8 million square feet of space in 2021. CLI’s committed occupancy stood at a healthy 85% as of 31 December 2021. Despite the subdued leasing market in 2021, office rental collections remain healthy at 98%1. We are encouraged by early signs of increasing leasing interest with 400,000 square feet of new leases and renewals committed in January 2022. Despite the challenging operating environment, NPI remained largely stable for FY 2021, held up by contributions from acquisitions made largely by a-iTrust in FY 2021. 1 Collection status for 4Q 2021 office billings as at 31 January 2022. Figure does not include collections for Building Q1 in Aurum Q Parc which was acquired in late 2021. FY 2021 INR198.3 billion Portfolio value 1 23 Number of properties 2 22.8 million sq ft Net leasable area of operating IT parks and Logistics parks PORTFOLIO SNAPSHOT Physical Occupancy 84.7% Committed Occupancy Positive Rental Reversion Leasing Momentum c.3.8m sq ft of space renewed/newly leased 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 93 91 91 91 85 2,772 2,601 2,698 2,702 2,649 NEW ECONOMY NPI (INR million) Occupancy (%) 1 Refers to total sum of CLI’s owned properties’ valuations as at 31 December 2021. 2 Includes operational IT parks, Logistics parks and Lodging assets, as well as properties under development/to be developed. 1 Refers to CLI’s owned properties’ total sum of valuations as at 31 December 2021. Annual Report 2021 55 CapitaLand Investment Limited 54