CapitaLand China Trust : Presentation Slides (1982 KB)

2024 Annual

General Meeting

22 April 2024, 3.30pm

Disclaimer

This presentation may contain forward-looking statements. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, availability of real estate properties, competition from other developments or companies, shifts in customer demands, shifts in expected levels of occupancy rate, property rental income, charge out collections, changes in operating expenses (including employee wages, benefits and training, property operating expenses), governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business.

You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management regarding future events. No representation or warranty express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Neither CapitaLand China Trust Management Limited ("Manager") nor any of its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising, whether directly or indirectly, from any use of, reliance on or distribution of this presentation or its contents or otherwise arising in connection with this presentation.

The past performance of CapitaLand China Trust ("CLCT") is not indicative of future performance. The listing of the units in the CLCT ("Units") on the Singapore Exchange Securities Trading Limited (SGX-ST) does not guarantee a liquid market for the Units. The value of the Units and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in the Units is subject to investment risks, including the possible loss of the principal amount invested. Investors have no right to request that the Manager redeem or purchase their Units while the Units are listed on the SGX-ST. It is intended that holders of Units may only deal in their Units through trading on the SGX-ST.

This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for the Units.

Capi t aLand Chi na Tr ust

Annual General Meeting 22 April 2024

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Contents

01

FY 2023 Key Highlights

02

Financial & Capital Management

03

Navigating 2024

Please click to access CLCT's Annual Report 2023 and Integrated Sustainability Report 2023

FY 2023

Key Highlights

Building a Resilient and Diversified Portfolio

First and Largest China-FocusedS-REIT

Retail	Business	Logistics
Malls	Parks	Parks

Located in	Gross Floor Area
12 cities	~1.9 mil sq m
Total Assets	Market Cap
S$5.0 billion	S$1.2 billion
Distribution per Unit	Distribution Yield
6.74 S cents	9.9%

Note:

1. Distribution yield of 9.9% based on FY 2023 DPU of 6.74 S cents and unit price of S$0.68 as at 19 April 2024.

Capi t aLand Chi na Tr ust

Annual General Meeting 22 April 2024

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FY 2023 Performance Highlights

Recovery in the Retail Sector Offset Business Park and Logistics Park Challenges

Gross Revenue

(RMB million)

Net Property Income

(RMB million)

Distribution per Unit

(S Cents)

3.3%

1,851.5 1,912.5

593.7576.4

		Retail
		New
1,257.8	1,336.1	Economy

5.3%

1,228.4	1,293.7
435.3	426.4	Retail
		New
793.1	867.3	Economy

7.50

10.1%

6.74

FY 2022

FY 2023

FY 2022

FY 2023

FY 2022

FY 2023

Growth led by better performance in

retail sector, mitigating lower contributions from business parks and logistics parks

Lifted by retail NPI improvement of

9.4% YoY due to better operating conditions and positive momentum driven by higher occupancies and post AEI completions.

DPU was negatively impacted by the

8.5% decline in the SGD/RMB exchange rate coupled with 16.5% increase in finance costs.

Capi t aLand Chi na Tr ust

Annual General Meeting 22 April 2024

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FY 2023 Operational Highlights

Improvements Driven by Higher Occupancies and AEI Efforts

45.8%1	41.5%1	0.9%2
Shopper Traffic	Tenant Sales	Portfolio
(FY YoY)	(FY YoY)	Valuation
98.2%	91.0%	82.0%
Retail	Business Park	Logistics Park
Occupancy	Occupancy	Occupancy
0.2%	1.6%	20.5%
Retail	Business Park	Logistics Park
Reversion	Reversion	Reversion

Notes:

1. Shopper Traffic and Tenant Sales exclude CapitaMall Qibao as the mall had ceased operations since end of March 2023.
2. Presented on a 100% basis in RMB terms, excluding CapitaMall Shuangjing and CapitaMall Qibao.

Encouraging Shopper Traffic and Tenant sales

Performance of dominant malls and post-AEI assets:

FY 2023 (YoY)	Shopper	Tenant
Traffic	Sales
CapitaMall	+73.8%	+42.0%
Xizhimen
Rock Square*	+30.6%	+46.6%
CapitaMall	+45.1%	+44.2%
Wangjing
CapitaMall Xuefu	+71.1%	+60.5%
CapitaMall	+73.6%	+57.4%
Nuohemule
CapitaMall Grand	+9.6%	+56.3%
Canyon*
CapitaMall	+11.6%	+8.0%
Yuhuating*

*Assets with AEIs in 2023

Achieved Highest Retail Occupancy since 2019

• Retail occupancy surpassed 98%, supported by active AEI and reconstitution efforts.
• Healthy occupancy cost ranging between high teens to low 20%

Business Park and Logistics Park Sectors

• New supply and weaker business sentiments impacted leasing activity
• Collaborating with government agencies and tenant community to strengthen demand pipeline

Capi t aLand Chi na Tr ust

Annual General Meeting 22 April 2024

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FY 2023 Milestones

Achieved New Milestones across Various Pillars from Portfolio Reconstitution, Capital Management to Sustainability

Portfolio Optimisation & Rejuvenation

Divestment of	Extracted value from our
CapitaMall Shuangjing	retail assets through the
in December 2023, for	completion of
RMB842.0 million	strategically timed
(approximately S$157.8	AEIs and unit
million), representing an	reconfigurations at
exit yield of 2.8%.	CapitaMall Yuhuating,
	Rock Square and
	CapitaMall Grand
	Canyon.

Capital Management

Launched RMB600 million	Established
free trade zone three-year	a Sustainability-Linked
tenor offshore bonds with	Finance Framework
a coupon rate of 3.80%	that comprises KPIs
per annum, achieving	linked to green building
~100 bps savings. CLCT	certifications, renewable
is the first Singapore-	energy and energy
based issuer to launch	consumption intensity
Free Trade Zone (FTZ)	targets.
offshore bonds.

Capi t aLand Chi na Tr ust

Annual General Meeting 22 April 2024

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Integrating Sustainability Practices Across Our Operations

Achieved New Milestones across Various Pillars from Portfolio Reconstitution, Capital Management to Sustainability

Sustainability Accolades

Awarded a 5-starrating in the GRESB Assessment 2023, an improvement from 2-Star rating in 2022

Attained 4 new LEED Gold certification for retail and business park assets:

• CapitaMall Xizhimen
• Ascendas Innovation Towers
• Ascendas Innovation Hub
• Singapore-HangzhouScience & Technology Park Phase I1

Purchased offsite renewable energy for

the first time at Ascendas Innovation Towers and Ascendas Innovation Hub (3.0% of portfolio's electricity consumption)

Implemented green leasing for all CLCT properties managed by CLI2

Completed the installation of 253 solar panels on the roof of Kunshan Bacheng Logistics Park, to begin generating renewable energy in 2024.

Maintained an 'A' rating

for GRESB Public Disclosure 2023

Upgraded MSCI ESG Rating from 'B' to 'BBB'

Upgraded Sustainalytics Risk Rating from 'Low Risk' to 'Negligible Risk'

Notes:

1. Attained LEED Gold certification for Block 1 to 3 of Singapore-Hangzhou Science & Technology Park Phase I - the remaining blocks are LEED Gold certified since 2014.
2. With the exception of CapitaMall Shuangjing and logistics park properties as these properties are not operated by CLI.

Capi t aLand Chi na Tr ust

Annual General Meeting 22 April 2024

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Proactive Rejuvenation to Strengthen Mall Offerings

Assets to Make Positive Contributions in FY 2024

CapitaMall Yuhuating

AEI

• Recovered ~8,900 sq m of anchor supermarket space to create specialty tenant space, injecting more lifestyle offerings and experiences across more than 70 stores
• Achieved rental reversion of +112% for the zone

Rock Square

Reconfiguration

• Recovered 2,310 sq m of supermarket anchor space at basement two and reconfigured it into 20 stores introducing trendy lifestyle and specialty F&B offerings
• ROI for this new reconfiguration was >13%.

CapitaMall Grand Canyon

AEI

• Introduced refreshed tenant mix spanning ~7,800 sq m that includes a new retail concept supermarket, 7FRESH, as well as 60 popular F&B outlets and trendy retail & amenity stores
• Post AEI, rental income for the area grew approximately 50%

Completed: 1Q 2023

Completed: 3Q 2023

Completed: 4Q 2023

Capi t aLand Chi na Tr ust

Annual General Meeting 22 April 2024

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