CapitaLand Integrated Commercial Trust : Annual General Meeting To Be Held On 21 April 2022 - Responses To Substantial And Relevant Questions

(Constituted in the Republic of Singapore pursuant to a trust deed dated 29 October 2001 (as amended))

ANNOUNCEMENT _________________________________________________________________________

Annual General Meeting to be held on 21 April 2022

Responses to Substantial and Relevant Questions _________________________________________________________________________

CapitaLand Integrated Commercial Trust Management Limited, as the manager of

CapitaLand Integrated Commercial Trust ("CICT", and the manager of CICT, the "CICT Manager") would like to thank all unitholders of CICT ("Unitholders") who have submitted their questions in advance of our Annual General Meeting ("AGM") to be held virtually via "live audio-visual webcast and live audio-only stream" at 2.30 p.m. on Thursday, 21 April 2022.

We have grouped the most asked questions, as well as questions relevant to the AGM agenda and aspects of CICT's business into a few key topics. Questions asked during the pre-AGM sessions, including the session jointly organised with Securities Investors Association (Singapore), have also been included. The key topics are:

• A. Growth Strategy

• B. Business Performance

• C. Financials and Capital Management

Please refer to our responses to these substantial and relevant questions in the following pages.

The CEO of the CICT Manager, Mr Tony Tan will deliver a presentation to Unitholders at the AGM. Please refer to all AGM-related documents atInvestor Relations: AGM & EGM(cict.com.sg).

Following the conclusion of the AGM, the voting results of the AGM will be uploaded on

SGXNet and CICT's website. The minutes of the AGM will be uploaded on SGXNet and CICT's website on or before 21 May 2022.

CapitaLand Integrated Commercial Trust Management Limited (Registration Number: 200106159R)

as manager of CapitaLand Integrated Commercial Trust

Lee Ju Lin, Audrey

Company Secretary

18 April 2022

IMPORTANT NOTICE

The past performance of CapitaLand Integrated Commercial Trust ("CICT") is not indicative of future performance. The listing of the units in CICT ("Units") on the Singapore Exchange Securities Trading Limited (the "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, CapitaLand Integrated Commercial Trust

Management Limited, as manager of CICT (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 announcement is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for the Units.

A. Growth Strategy
1.	It is good to see CICT re-cycles its assets to generate higher DPU and NAV. What is the targeted percentage of assets to be based in Singapore versus assets overseas? Any expected geographic breakdown in five years' time?
Since 2020, we have guided that CICT is predominantly focused on Singapore with no more than 20% of its portfolio property value in overseas developed markets. It is a long-term plan to seek some diversification of income over time for greater stability. CICT would have 92% of its portfolio property value in Singapore, 4% in Frankfurt, Germany and 4% in Sydney, Australia, assuming all its announced acquisitions were completed and based on the respective asset valuations. Other than the guided split of 80:20 between Singapore and overseas developed markets over time, there is no further geographic breakdown as this would be dynamic depending on various factors including prevailing market condition, available opportunities, pricing and timing.
2.	Are there any plans for more overseas acquisitions in 2022? What countries are CICT looking at and what are the criteria used when evaluating potential overseas acquisition? Which are the targeted countries besides Australia and Germany?
As part of the portfolio plan, we are proactively seeking acquisition opportunities in Singapore as well as other developed markets in a disciplined manner. We will evaluate such growth opportunities in other developed markets in terms of expected DPU-accretion, strategic fit and any value creation opportunities. We are open to acquire from both CapitaLand group and third parties. Outside Singapore, CICT currently has presence in Germany and Australia and these markets will be our immediate focus. With established presence, we are in better position to access to more opportunities for our assessments.
3.	Any target balance between Retail, Integrated Developments and Office?
Investing in Retail, Integrated Developments and Office assets is CICT's focus. There is no target balance as the asset type split is dependent on availability of opportunities, best use for the location and market conditions.
4.	In investing overseas, what is CICT's targeted profit yield as overseas investments are greater risk and cannot be bearing the same yield as Singapore properties?
For overseas investment, other than the strategic location, merits of the asset and growth potential, we look at the expected net property income yield compared to comparable market transactions. We also assess the funding structure and ultimately the risk-adjusted after-tax return.
5.	What is the key motivation in investing in assets in Australia and Germany? Do they have better returns?
In the long term, CICT has plans to explore redevelopment or upgrading plans for certain Singapore properties. Hence, we wanted some income diversification from other markets which could mitigate some risks and downtime from Singapore, especially if we start to execute plan which may take some time to be completed and income contribution could be later. As both Sydney, Australia and Frankfurt, Germany are developed markets with quality assets, healthy occupier demand balanced with stable risk-adjusted after-tax return, they are natural markets for us to establish strategic positions. Additionally, CapitaLand Group has the network in the respective market.
6.	With 79 Robinson Road, CapitaSpring and CapitaGreen, we seem to be moving towards owning assets with shorter leasehold versus 99 years leasehold. With this trend, how should we think about the risk profile of CICT?
We wish to clarify that there is no deliberate move towards owning assets with shorter leasehold. CICT's existing portfolio (including CapitaGreen and CapitaSpring) comprised a mix of leasehold and freehold properties. Based on CICT's portfolio gross floor area as at 31 December 2021, CICT has 12.5% of freehold and 87.5% of leasehold properties. The weighted average unexpired leasehold remaining is 110 years as at 31 December 2021. Amongst the leasehold properties, Six Battery Road and 21 Collyer Quay have 999-year leasehold. In CICT's recent announced acquisitions since December 2021, two of the three Sydney, Australia assets are freehold, while the third has a remaining lease of ~95 years. Only 79 Robinson Road announced on 25 March 2022 has a remaining lease of ~45 years.
7.	What is our investment strategy? Is it to acquire newly completed assets?
CICT's strategy is to invest in Retail, Integrated Developments and Office assets in Singapore and overseas developed markets (no more than 20% of portfolio property value). The criteria for target investments include: i. potential for growth in yield/income ii. DPU-accretion iii. rental sustainability iv. potential for value creation; and v. green rated or potential to achieve green rating
8.	One of the ways CICT aims to create value is through portfolio reconstitution. Examples include the divestment of One George Street in 2021 and the recent acquisition of 79 Robinson Road. What are some of the key metrics CICT looks at when deciding which properties to divest and which ones to invest in?
CICT embarked on its portfolio reconstitution journey to enhance its portfolio quality of assets and generate higher value. The criteria for target investments include: i. potential for growth in yield/income ii. DPU-accretion iii. rental sustainability iv. potential for value creation; and v. green rated or potential to achieve green rating

The divestment targets are evaluated relative to CICT's asset and portfolio plan. Criteria will include value to be realised from the divestment when compared against other available options, including highest and best use.
9.	CICT has a very large portfolio consisting of properties in Singapore as well as overseas. Countries across the world are opening as the COVID-19 pandemic recedes. What is CICT's strategy to capitalise on this in terms of both organic growth and external acquisitions?
CICT has a portfolio of 24 properties, 20 in Singapore (with one more asset pending acquisition completion), two in Germany and two in Australia (with a third asset pending acquisition completion) as at 24 March 2022. To drive organic growth, we consistently adopted an active asset and portfolio management and proactive leasing strategy. This included plans to increase occupancy rates and balance the achieved rental rates against occupancy, drive tenant sales and support tenants where relevant, to ride through challenges. In addition, we review our asset and portfolio plans to consider whether any asset enhancement works required to generate further value, to refresh offerings and enrich experience at our properties or an asset should be divested so that we can recycle capital to re-invest into other higher yielding opportunities. Underpinning all of these will be our prudent capital management strategy, which is to secure longer dated funding from diversified sources at attractive rates, within regulatory aggregate leverage. The ongoing rejuvenation of the mall at Raffles City Singapore will enhance retail offerings, see the reconfiguration of 111,000 sq ft from Levels 1 to 3 into smaller units for large format and specialty retail. Scheduled for completion in 4Q 2022, the revamped space presents an exciting opportunity to refresh our retail tenant mix with both homegrown and premium international brands, including key international fashion, beauty and lifestyle retailers. We are also planning some upgrading works and tenant repositioning at Clarke Quay to align with the new developments happening around the vicinity. As for external growth, we ventured into another overseas developed market and proposed to acquire three properties in Sydney, Australia in December 2021. One of the reasons for the acquisition is to benefit from the recovery potential with the reopening of Sydney. We completed the acquisition of two office buildings in Sydney, Australia on 24 March 2022 and are pending the completion of one more integrated development. And on 25 March 2022, CICT announced the proposed acquisition of 70% interest in 79 Robinson Road, a newly completed Grade A office building, strategically located in the Tanjong Pagar sub-market. The pro forma net property income yield was 4.0% and we could capitalise on the building's committed occupancy of 92.9% to benefit from the rising office market rent trend.
10.	Will CICT be merged with another CapitaLand REIT with overseas exposure, e.g. CapitaLand China Trust (CLCT) for growth?
CICT has clearly articulated its growth strategy will be in Singapore and overseas developed markets (no more than 20% of portfolio property value) and in asset types comprising Retail, Integrated Development and Office. Any mergers & acquisitions which are not aligned to its strategy will not be considered.