Annual Report 2024 CapitaLand China Trust
Forging Ahead, Shaping The Future The cover design embodies our continuing drive to forge ahead with clarity, conviction and confidence in our strategies to grow our business. The dynamic interplay of circular nodes and diagonal beams conveys upward momentum achieved through embracing innovation and transformation. Set within a structured yet evolving grid, the design underscores adaptability and agility, reflecting our relentless quest to create superior value for our investors and contribute positively to the communities where we operate. At its core, the structured circular forms, with a focal red circle that proudly represents the red dot in CapitaLand’s logo, symbolises our Group’s foundation in Singapore. CapitaLand China Trust is well on our journey to making an impact in shaping a better future for all our stakeholders. Contents Overview About Us 1 Property Portfolio 2 2024 Highlights 4 Financial Highlights 5 ESG Highlights 6 Business Model 8 Chairman & CEO Message 10 Trust & Organisation Structure 15 Board of Directors 16 Management Team 21 Performance Financial Review 22 Capital Management 25 Operations Review 27 Investor Relations 34 Trading Performance 36 Portfolio Details 37 Governance Corporate Governance 53 Risk Management 76 Sustainability Management 81 Financial Statements Financial Statements 82 Other Information Additional Information 162 Statistics of Unitholdings 164 Portfolio Directory 167 Corporate Information IBC
About Us CapitaLand China Trust (CLCT) is Singapore’s largest Chinafocused real estate investment trust (REIT). Listed on the Singapore Exchange Securities Trading Limited (SGX-ST) on 8 December 2006, the objective of CLCT is to invest on a long-term basis, in a diversified portfolio of incomeproducing real estate and real estate-related assets in China, Hong Kong SAR and Macau that are used primarily for retail, office and industrial purposes (including business parks, logistics facilities, data centres and integrated developments). CLCT is managed by CapitaLand China Trust Management Limited (CLCTML), a wholly owned subsidiary of Singaporelisted CapitaLand Investment Limited (CLI), which is a leading global real asset manager with a strong Asia foothold. Scan the QR code or visit https://investor.clct.com.sg/home.html to view the reports online. Reporting Suite 2025 Our Vision To be the leading China-focused real estate investment trust, with a diversified and professionally managed portfolio of quality assets, capturing long-term growth drivers. Our Mission To deliver resilient distributions and sustainable total returns to Unitholders. For more information, please visit our corporate website at www.clct.com.sg. CapitaLand China Trust Annual Report 2024 Independent Market Research 2024 CapitaLand China Trust Integrated Sustainability Report 2024 CapitaLand China Trust 1 Annual Report 2024
Property Portfolio Since its IPO in 2006, CLCT’s portfolio has grown from seven shopping malls to a diversified portfolio of 18 properties across 12 tier 1 and leading cities in China, including nine retail malls, five business parks, and four logistics parks.1 Indicates number of properties within the same asset class in each city CapitaMall Nuohemule Hohhot 1 CapitaMall Xinnan Chengdu 1 CapitaMall Yuhuating Changsha 1 Rock Square Guangzhou 1 CapitaMall Xizhimen CapitaMall Wangjing CapitaMall Grand Canyon Beijing 3 CapitaMall Xuefu CapitaMall Aidemengdun Harbin 2 Retail Ascendas Xinsu Portfolio Suzhou 1 Ascendas Innovation Towers Ascendas Innovation Hub Xi'an 2 Singapore-Hangzhou Science & Technology Park Phase I Singapore-Hangzhou Science & Technology Park Phase II Hangzhou 2 Business Park Kunshan Bacheng Logistics Park Kunshan 1 Wuhan Yangluo Logistics Park Wuhan 1 Shanghai Fengxian Logistics Park Shanghai 1 Chengdu Shuangliu Logistics Park Chengdu 1 Logistics Park Nine Retail Malls CLCT’s nine retail properties are strategically located in densely populated areas with good connectivity to transportation amenities, which provide stable recurring shopper footfall. The malls are positioned as onestop family-oriented destinations that offer essential services and house a wide range of lifestyle offerings that cater to varied consumer preferences in shopping, dining and entertainment. Five Business Parks CLCT has a portfolio of five business parks that is situated in high-growth economic zones, with quality and reputable domestic and multinational corporations operating in new economy sectors. The business parks and industrial properties exhibit excellent connectivity to transportation hubs, and are easily accessible via various modes of transport. Four Logistics Parks The portfolio of four logistics parks is located in key logistics hubs near transportation nodes such as seaports, airports and railways to serve the growing domestic logistic needs of China’s Eastern, Central and Southwest regions. Fitted to meet a wide range of e-commerce and logistics requirements, the properties are anchored by strong domestic tenants, including China’s leading technology-driven supply chain solutions and logistics service providers. 1 Unless otherwise disclosed, please note that the disclosures in this Annual Report on CLCT’s portfolio exclude CapitaMall Qibao and CapitaMall Shuangjing. CapitaMall Qibao was held under a master lease by CapitaRetail Dragon Mall (Shanghai) Co., Ltd, a subsidiary of CapitaRetail China Investments (B) Alpha Pte. Ltd.. The master lease which expired on 7 January 2024, was entered with Shanghai Jin Qiu (Group) Co., Ltd, the legal owner of CapitaMall Qibao. CLCT did not exercise the option to renew the master lease which expired on 31 January 2021 and has ceased operations since the end of March 2023. CLCT has on 6 Dec 2023 announced the divestment of CapitaRetail Beijing Shuangjing Real Estate Co., Ltd., which holds CapitaMall Shuangjing at the agreed property price of RMB842.0 million. Consequently, CLCT has recognised a fair value uplift for CapitaMall Shuangjing to RMB842.0 million. The completion of CapitaMall Shuangjing’s divestment was announced on 23 January 2024. CapitaMall Shuangjing is a shopping mall in Beijing. Prior to the completion of the divestment, CLCT had a 100% interest in CapitaMall Shuangjing. 2 CapitaLand China Trust
2 2 1 1 1 1 1 2 1 1 1 1 3 Harbin Guangzhou Changsha Wuhan Hangzhou Kunshan Suzhou Shanghai Xi'an Chengdu Beijing Hohhot Retail Business Park Logistics Park 3 Annual Report 2024
2024 Highlights Business Operations 3,029 No. of Leases 92.6%1 Portfolio Occupancy +2.0% YoY Tenant Sales +8.7% YoY Shopper Traffic Gross Revenue (RMB million) Distribution Per Unit (S cents) Total Assets (S$ billion) Net Property Income (RMB million) Capital Management 87%2 % of Fixed Rate 3.51%3 Average Cost of Debt 41.9%4 Aggregate Leverage 35%5 RMB-Denominated Debt 2020 2021 2022 2023 2024 1,056.2 1,147.4 91.2 1,826.1 1,851.5 1,837.6 1,912.5 2020 2021 2022 2023 2024 744.0 1,209.9 1,228.4 1,219.1 1,293.7 678.2 65.8 2020 2021 2022 2023 2024 6.35 8.73 7.50 5.65 6.74 4.3 5.6 5.2 4.7 5.0 2020 2021 2022 2023 2024 1 Based on committed leases as at 31 December 2024. 2 Excludes onshore RMB loans. 3 Based on the consolidated interest expense for the financial year reflected over weighted average borrowings on balance sheet for that financial year. 4 In accordance with the Property Funds Appendix, the aggregate leverage is calculated based on the proportionate share of total borrowings and deferred payments over deposited properties. CLCT does not have any deferred payments. 5 Includes FTZ Bond, RMB Bond as well as Cross Currency Interest Rate Swaps (CCIRS) on SGD loans to RMB. Including forward hedges as at 31 December 2024, total RMB as % of Total Debt is approximately 38%. 6 Joint venture refers to CLCT’s 51% stake in Rock Square in 2020. 7 Based on effective stake as at 31 December 2024. 8 Includes Shanghai, Suzhou, Kunshan and Hangzhou. 9 Includes Changsha, Chengdu, Xi’an, Wuhan, Harbin and Hohhot. Asset Class Diversification (by AUM7) Retail 76.4% Business Park 17.0% 6.6% Logistics Park Geographical Diversification (by AUM7) 37.1% 15.2% 15.5% 32.2% Beijing Guangzhou Yangtze Delta Cities8 Other Key Cities9 CLCT group CLCT group Joint venture6 Joint venture6 Retail: 98.2% Business Park: 87.6% Logistics Park: 97.6% Retail: 98.2% Business Park: 87.6% 4 CapitaLand China Trust
Financial Highlights As at 31 December 2020i 2021 2022 2023 2024 Financial Performance Gross Revenue (RMB million) 1,147.4 1,826.1 1,851.5 1,912.5 1,837.6 Gross Revenue (S$ million) 228.7 378.0 383.2 364.7 341.5 Net Property Income (RMB million) 744.0 1,209.9 1,228.4 1,293.7 1,219.1 Net Property Income (S$ million) 148.3 250.4 254.2 246.7 226.6 Distributable Income (S$ million) 79.7 135.5 125.6 113.9 96.8 Distribution Per Unit (DPU) (S cents) 6.35 8.73 7.50ii 6.74ii 5.65 Key Financial Position Total Assets (S$ million) 4,310.3 5,575.9 5,226.1 4,995.8 4,722.8 Portfolio Property Valuation (S$ million)iii 3,895.3 5,239.0 4,904.3 4,700.1 4,443.9 Total Deposited Properties (S$ million)iv 4,281.9 5,226.6 4,893.4 4,670.3 4,390.1 Net Assets Attributable to Unitholders (S$ million) 2,245.2 2,588.2 2,306.2 2,039.9 1,926.6 Net Asset Value Per Unit (S$) - Before Income Distribution 1.49 1.56 1.38 1.21 1.12 - After income Distribution 1.48 1.54 1.34 1.18 1.09 Total Gross Borrowings (S$ million)v 1,359.7 1,993.4 1,950.9 1,956.4 1,857.3 Market Capitalisation (S$ million) 2,093.9 1,974.8 1,874.8 1,570.6 1,238.7 Capital Management Aggregate Leverage (%)vi 31.8 37.7 39.6 41.5 41.9 Average Cost of Debt (%)vii 2.76 2.62 2.97 3.57 3.51 Average Term to Maturity (years) 3.0 3.4 3.4 3.5 3.4 Interest Coverage Ratio (times)viii 3.8 4.5 3.6 3.1 3.0 Management Expense Ratio (%)ix 0.8% 0.9% 0.8% 0.9% 0.9% i Includes contributions from joint venture in 2020 (51% stake in Rock Square). Remaining 49% stake was acquired on 30 December 2020. ii Includes rental support of S$1.3 million in 2022 and S$0.6 million in 2023 (which was previously deducted from the amount paid to the vendor) for the vacancy loss and rent free provided to existing tenants for Chengdu Shuangliu Logistics Park and Wuhan Yangluo Logistics Park. The DPU impact of rental support is 0.08 S cents in 2022 and 0.04 S cents in 2023. No rental support was received in 2024. iii Based on valuation on a 100% basis as at 31 December 2024. The portfolio property valuation includes the valuation of nine retail malls, five business parks and four logistics parks. For more details, please refer to page 24. iv Total consolidated assets of CLCT and excludes share attributable to the non-controlling interest of the project companies if the ownership is less than 100%. v Excludes unamortised transaction costs and modification gain. vi In accordance with the Property Funds Appendix, the aggregate leverage is calculated based on the proportionate share of total borrowings and deferred payments over deposited properties. CLCT does not have any deferred payments. vii Based on the consolidated interest expense for the respective financial year reflected over weighted average borrowings on balance sheet for that financial year. viii The ratio is calculated by dividing the trailing 12 months EBITDA (excluding effects of any fair value changes of derivatives and investment properties, and foreign exchange translation) by the trailing 12 months’ interest expense, borrowing-related fees and distributions on hybrid securities (i.e. perpetual securities) in accordance with the revised Property Funds Appendix guidelines with effect from 28 November 2024. ix Refers to the expenses of CLCT excluding property expenses and interest expenses but including the performance component of CLCTML’s management fees, expressed as a percentage of weighted average net assets. 5 Annual Report 2024
Environmental and Social Highlights Accolades BBB MSCI ESG Ratings Second consecutive year with 5-Star Rating 2024 GRESB Real Estate Assessment Sixth consecutive year with A Rating 2024 GRESB Public Disclosure ~10% of portfolio’s electricity consumption are from renewable energy sources of the main contractors appointed this year are ISO 14001 and ISO 45001 certified 100% of supply chain agreed to abide by CLI’s Supply Chain Code of Conduct 100% ESG Highlights 1 By portfolio gross floor area excluding carpark space. Refers to CLCT properties managed by CLI (by sq m). 2 Attained LEED GOLD certification for research & development Block 1 to 6 of Ascendas Xinsu Portfolio. 42% of total debts are sustainability-linked loans ISO 45001 Low Risk Sustainalytics ESG Risk Rating Zero incidents resulting in fatality and permanent disability for CLCT employees and contractors ~60%1 of CLCT’s portfolio are LEED GOLD certified where new certifications include • CapitaMall Nuohemule • CapitaMall Xuefu • Ascendas Xinsu Portfolio2 • Singapore-Hangzhou Science & Technology Park Phase II 6 CapitaLand China Trust
Board Matters 54 Remuneration Matters 62 Accountability and Audit 67 Unitholder Rights and Engagement 71 Compliance with the Code of Corporate Governance Board Composition Committee Composition Number of Meetings Board Independence Audit and Risk Committee 5 Board 4 Audit and Risk Committee 2 Nominating and Remuneration Committee 2 Executive Committee 1 AGM Gender Diversity Nominating and Remuneration Committee Age Profile Executive Committee Tenure Mix For more information, please refer to the relevant pages in this annual report. 4 2 1 4 100% Independent 4 members 100% Non-Independent 3 members 3 2 5 Independent 67% Independent 3 members 5 Males 3 Females 3 Non-Independent 33% Non-Independent 50 years & below 0-3 years 51-60 years old 3-6 years 61 years & above >6 years Governance Highlights as at 31 December 2024 7 Annual Report 2024
8 CapitaLand China Trust Business Model At CLCT, we focus on creating, unlocking, and extracting value, underpinned by proactive capital management. Through disciplined portfolio reconstitution, asset enhancement, and a commitment to sustainability, we leverage our market expertise and operational strengths to drive long-term value creation. Business Strategy How we create value INVESTMENT & PORTFOLIO MANAGEMENT Employ a disciplined portfolio reconstitution strategy to build a resilient, diversified and future-ready asset mix, attracting leading tenants to high-quality spaces. CAPITAL MANAGEMENT Maintain CLCT’s robust financial position by diversifying funding sources, minimising debt costs, optimising aggregate leverage levels, and mitigating risks associated with interest rates, currency, and liquidity. INVESTOR RELATIONS Foster transparent and timely two-way communication with investors, providing clear insights into CLCT’s performance and strategy. RISK & SUSTAINABILITY MANAGEMENT Incorporate ESG practices into CLCT’s operations and identify material risks with key controls to mitigate those risks. Value Drivers Where value was created CREATE VALUE Enhance revenue diversification and resilience through strategic, yieldaccretive acquisitions. UNLOCK VALUE Identify the optimal stage to divest mature assets to strengthen balance sheet or reinvest into higher-growth opportunities. EXTRACT VALUE Execute asset enhancement initiatives (AEIs) and unit reconfigurations to drive organic growth, supported by customer-centric initiatives. PROACTIVE CAPITAL MANAGEMENT Maintain a strong financial position by managing aggregate leverage, reducing overall average cost of debt and increasing natural hedge.
9 Annual Report 2024 Value Created Value created in FY 2024 Our Stakeholders Internal and External Stakeholders UNLOCK VALUE ◆ Completed divestment of CapitaMall Shuangjing with an exit yield of 2.8%, strengthening CLCT’s balance sheet and financial capacity. PROACTIVE CAPITAL MANAGEMENT Maintained aggregate leverage of 41.9% and improved average cost of debt of 3.51%. Capitalised on easing RMB interest rates by issuing a RMB400 million bond due 2027 at 2.9% p.a. in October 2024, to replace higherinterest SGD loans. Increased RMB-denominated debt to ~35%1 of CLCT’s loan book, progressing towards our 2025 target of 50%. Leveraged the Sustainability-Linked Finance Framework to increase sustainable financing to 42% in December 2024. EXTRACT VALUE Completed 3 reconfigurations in CapitaMall Xizhimen, CapitaMall Xuefu and Rock Square ranging from 170 sq m to 1,700 sq m to replace tenants with trending retailers. Benefitted from blended return on investment of ~14% across the 3 retail malls that underwent AEIs in 2023 (CapitaMall Yuhuating, Rock Square, CapitaMall Grand Canyon). Employees Investment Community Tenants and Shoppers Supply Chain Community 1 Includes FTZ Bond, RMB Bond as well as Cross Currency Interest Rate Swaps (CCIRS) on SGD loans to RMB. Including forward hedges as at 31 December 2024, total RMB as % of Total Debt is approximately 38%.
Chairman & CEO Message Chairman & CEO Message Dear Unitholders, CapitaLand China Trust (CLCT) demonstrated resilience to deliver a steady performance in FY 2024 amidst headwinds from China’s economic challenges and ongoing geopolitical tensions. By maintaining a disciplined approach to asset and capital management, we have been steadily building our income resilience while aligning our portfolio with China’s economic priorities on domestic consumption and technology-driven industries. Capitalising on China’s 2024 stimulus measures and interest rate easing cycle, we expanded our RMB-denominated debt from 20% to 35%1 at the close of 2024, improving our natural hedging and financial position. Additionally, we completed the divestment of a retail asset – CapitaMall Shuangjing, underscoring our commitment to capital recycling and portfolio optimisation. As Singapore’s first and largest China-focused REIT, we remain dedicated to enhancing asset performance and shaping a quality portfolio, while fortifying our capital base for future opportunities. Sustained Performance Gross Revenue for FY 2024 declined 3.9% year-on-year (YoY) to RMB1,837.6 million and Net Property Income (NPI) registered a 5.8% YoY reduction to RMB1,219.1 million, due to the absence of contributions from CapitaMall Shuangjing and CapitaMall Qibao, alongside lower occupancy and rents in business parks and logistics parks. However, on a comparable nine-mall portfolio basis2, retail NPI rose 1.9% YoY, highlighting the impact of our resilient retail portfolio, proactive lease management and completed asset enhancement initiatives (AEIs). Meanwhile, Distributable Income stood at S$96.8 million, translating to a Distribution Per Unit (DPU) of 5.65 Singapore cents. We closed the year with portfolio occupancy rates of 98.2% for retail, 87.6% for business parks and 97.6% for logistics parks. CLCT’s retail malls – our largest asset class comprising 70.7% of our portfolio’s Gross Rental Income (GRI) – saw an 8.7% YoY increase in shopper traffic and a 2.0% uptick in tenant sales, driven by demand for Food & Beverage (F&B), Services and IT offerings. Contributing to the improved retail operating metrics were our three large AEIs3 in 2023, which generated a blended return on investment (ROI) of approximately 14.0%. We also successfully completed three Tan Tee How Chairman Non-Executive Independent Director Chan Kin Leong Gerry Chief Executive Officer Executive Non-Independent Director 1 Includes FTZ Bond, RMB Bond as well as Cross Currency Interest Rate Swaps (CCIRS) on SGD loans to RMB. Including forward hedges as at 31 December 2024, total RMB as % of Total Debt is approximately 38%. 2 Excluding contributions from CapitaMall Qibao which ceased operations in March 2023 and CapitaMall Shuangjing which was divested in January 2024. 3 In FY 2023, CLCT completed three AEIs at CapitaMall Yuhuating, Rock Square and CapitaMall Grand Canyon. 10 CapitaLand China Trust
smaller reconfigurations at CapitaMall Xizhimen, CapitaMall Xuefu and Rock Square, with sizes ranging from 170 to 1,700 square metres (sq m), delivering strong ROI. However, China’s economy weighed down consumer sentiment and 2024 retail reversion came in slightly negative at -1.1%. Despite the cautious business environment, our business parks portfolio maintained robust occupancy levels that have outperformed or are on par with market levels. Through our targeted leasing approach, we secured both international and domestic tenants across key sectors such as semiconductors and engineering. Our business park portfolio – which represents 25.8% of our GRI – saw a negative rental reversion of 4.5% due to an influx of supply. However, our Ascendas Xinsu Portfolio delivered a positive rental reversion of 3.1%. Nevertheless, by focusing on key technology sectors prioritised by the Chinese government and partnering with local authorities to offer tenant incentives, we continue to position our business parks for future high-growth opportunities. Meanwhile, we successfully stabilised our logistics parks portfolio with a higher occupancy of 97.6%, well above the market average of 78.0%4 despite challenges from increased supply. In December 2024, CLCT secured an eight-year master lease with a third-party logistics tenant, fully occupying the Shanghai Fengxian Logistics Park, thereby derisking the logistics park portfolio. In line with our focus on prioritising occupancy at our logistics park assets, we achieved full or near-full occupancy at our Shanghai Fengxian, Kunshan Bacheng and Wuhan Yangluo Logistics Parks, driven by demand from third-party logistics players, as well as tenants from the smart appliances and food sectors. Additionally, occupancy at Chengdu Shuangliu Logistics Park improved significantly to 90.7% in 2024, up 22.9% YoY. Accounting for 3.5% of our portfolio GRI, our logistics segment recorded a rental reversion of -24.5% that is in line with the market. On balance, the positive results from our retail malls mitigated the performance of our new economy assets, underscoring the resilience of our diversified portfolio. Underpinned by our strong foundation and a quality portfolio, we are poised to navigate the current market dynamics and drive sustainable growth across our various asset classes. Enhancing Portfolio Value At CLCT, we consistently evaluate our portfolio to enhance our asset quality, while undertaking AEIs to fuel organic growth. Mature assets with limited growth potential are considered for monetisation, enabling capital redeployment into higher-quality investments. In January 2024, we completed the divestment of CapitaMall Shuangjing for RMB842.0 million at an exit yield of 2.8%. Proceeds from this sale were used to pare down borrowings and improve our gearing position. In 2025, we will prioritise unlocking value from traditional anchor spaces through well-timed AEIs and unit reconfigurations. At CapitaMall Wangjing, an 8,800 sq m older-format anchor supermarket space will be transformed into a new concept supermarket, featuring trending retail brands and popular F&B outlets, which is expected to complete in 4Q 2025. With additional initiatives planned in 2025, we will focus on increasing footfall and staying aligned with evolving consumer trends to further strengthen our retail portfolio. At the same time, we will continue driving occupancy rates at our business parks and logistics parks and deepen tenant engagement, while forging ahead with our disciplined portfolio reconstitution strategy to ensure a robust asset mix. Disciplined Capital Management Proactive capital and risk management remains central to our strategy, ensuring a strong balance sheet and diversified funding sources. During the year, we secured refinancing for loans due in FY 2025 ahead of their maturities and at lower margins. In FY 2024, CLCT achieved S$5.0 million in finance cost savings, primarily due to the repayment of interest-bearing loans using proceeds from the divestment of CapitaMall Shuangjing, issuance of FTZ bonds in 2023, and the reduction of China’s five-year Loan Prime Rate (LPR) by 60 basis points in 2024. Additionally, we lowered our average cost of debt to 3.51% per annum at the close of the year, down from 3.57% in FY 2023. Meanwhile, in October 2024, we issued a RMB400 million bond due in 2027 at a competitive interest rate of 2.9% per annum, replacing higher-interest Singapore Dollar loans. This expanded our RMB-denominated debt from 20% in FY 2023 to 35%1 this financial year, and we intend to increase to 50% by FY 2025 to capitalise on China’s lower borrowing costs. We also maintained a healthy interest coverage ratio5 of 3.0 times and a gearing ratio of 41.9%, both comfortably within the regulatory requirements of above 1.5 times and below 50% respectively6. Meanwhile, we upheld a wellstaggered debt maturity profile, with our average term to maturity standing at 3.4 years. In FY 2024, we increased the proportion of sustainability-linked loans to 42% of our total financing, up from 31% as at 31 December 2023, reinforcing our commitment to sustainable growth. Collectively, our disciplined capital management and the support of a strong Sponsor position us favourably for future financing opportunities. 4 Colliers Independent Market Research Report, 4Q 2024. 5 The ratio is calculated by dividing the trailing 12 months EBITDA (excluding effects of any fair value changes of derivatives and investment properties, and foreign exchange translation) by the trailing 12 months’ interest expense, borrowing-related fees and distributions on hybrid securities (i.e. perpetual securities) in accordance with the revised Property Funds Appendix guidelines with effect from 28 November 2024. 6 With effect from 28 November 2024, the Monetary Authority of Singapore imposed a minimum interest coverage ratio of 1.5 times and a revised aggregate leverage limit of 50% for all REITs. 11 Annual Report 2024
Chairman & CEO Message Setting New Benchmarks for Sustainability Sustainability continues to be a fundamental pillar of our long-term strategy. In the 2024 GRESB Real Estate Assessment, CLCT was awarded a 5-star rating for the second consecutive year. CLCT also scored an ‘A’ rating for the 2024 GRESB Public Disclosure for the sixth year running. Besides this, we solidified our portfolio’s green credentials by securing LEED Gold certification for four assets – CapitaMall Nuohemule, CapitaMall Xuefu, Ascendas Xinsu Portfolio7 and Singapore-Hangzhou Science & Technology Park Phase II. This increased the proportion of our greencertified assets to around 60%8 of our gross floor area (GFA) as at 31 December 2024, underlining our dedication to environmental stewardship. More details on our sustainability initiatives can be found in the “ESG Highlights” section of this report. Outlook China’s economy grew 5% in 20249. During the year, Chinese policymakers introduced a series of fiscal and monetary stimulus measures, including a 60 basis point reduction in the 5-year Loan Prime Rate (LPR) to 3.6%, liquidity injections and private sector support pledges. Early 2025 saw additional measures, such as nationwide civil servant salary adjustments and the launch of the “dual upgrade programme” to encourage consumer goods trade-ins and equipment upgrades, with further stimulus anticipated. Although these initiatives are anticipated to gain traction in 2025 and progressively rejuvenate the economy, the recovery of business and consumer confidence may take time. We will continue to monitor geopolitical developments, international trade dynamics and China’s economic support measures, as they play a key role in shaping the country’s trajectory. Moving forward, we remain positive about China’s long-term prospects and will focus on leveraging these opportunities to drive value creation at CLCT. Awards and Board Renewal In recognition of our commitment to transparency and excellence in reporting, CLCT was honoured with the Best Annual Report (Small Cap) award at the IR Magazine Forum & Awards – South East Asia in December 2024. Additionally, CapitaMall Xizhimen was named one of China’s top 100 most popular malls by Winshang.com, bearing testament to our operational excellence. As part of our leadership renewal, Mr Tan Tze Wooi stepped down as CEO on 1 January 2025. We extend our gratitude to Mr Tan for his leadership over the past seven years, during which he guided CLCT from strength to strength. We wish him every success in his new role at CapitaLand Investment. At the same time, we would like to warmly welcome Mr Chua Keng Kim, who came onboard as a Non-Executive Independent Director and member of the Audit and Risk Committee on 1 January 2025. He brings with him diverse and extensive real estate experience and expertise. On behalf of the board, we extend our appreciation to our Unitholders, business partners, tenants and employees for their unwavering support during the past year. Looking ahead, CLCT’s prudent capital management and wellestablished track record bode well for our ability to navigate China’s evolving retail and commercial landscape, while seizing emerging opportunities to deliver sustainable returns to Unitholders. TAN TEE HOW Chairman CHAN KIN LEONG GERRY Chief Executive Officer 7 Attained LEED Gold for research & development blocks one to six of Ascendas Xinsu Portfolio. 8 Includes CLCT properties that are managed by its Sponsor, CapitaLand Investment. 9 Source: China National Bureau of Statistics. 12 CapitaLand China Trust
致信托单位持有人之信函 尊敬的信托单位持有人 二零二四财政年，凯德中国信托展现出了强大的韧性。尽管 面临中国经济挑战和持续的地缘政治紧张局势，我们依然实 现了稳健的业绩表现。通过坚持严格的资产和资本管理策略， 我们稳步增强了收入的抗风险能力，同时积极调整投资组合， 以契合中国促进国内消费，支持技术驱动型产业的发展方向。 利用中国二零二四年的刺激措施和利率宽松周期，我们将人民 币计价债务比例从20%提升至二零二四年底的35%1，从而增 强了人民币资产负债的自然对冲能力和信托的财务状况。此外， 我们完成了对凯德MALL• 双井的脱售，彰显了我们在资本循 环和投资组合优化方面的承诺。作为新加坡首家也是最大的 专注于中国的房地产投资信托基金，我们始终致力于提升资产 表现，打造优质投资组合，同时巩固资本基础以把握未来机遇。 稳健表现 二零二四财政年，由于凯德MALL• 双井和凯德七宝购物广场 不再贡献收入，加之产业园和物流园的出租率及租金下降，总 收入同比下降3.9%，至18.376亿元人民币，净资产收入同比 下降5.8%，至12.191 亿元人民币。然而，按照九个购物中心 组合的可比口径2，零售净资产收入同比增长1.9%，这凸显了 我们零售资产组合的韧性、积极的租赁管理以及已完成的资 产增值计划的成效。可分派收入达到9680万新元，相当于每 单位派息为5.65新分。 截至本财年末，我们的资产组合出租率表现稳健，其中零售 资产达到98.2%，产业园为87.6%，物流园则为97.6%。作为 我们最大的资产类别，凯德中国信托旗下零售商场占我们总 租金收入的70.7%，其客流同比增长8.7%，租户销售额增长 2.0%，这主要得益于餐饮、服务及科技类业态的需求增长。 二零二三年完成的三项大型资产增值计划3 为零售运营指标的 改善作出了重要贡献，其综合投资回报率达到约14.0%。此外， 我们还成功完成了对凯德MALL• 西直门、凯德广场• 学府和 乐峰广场的三项小型空间改造，面积介于170至1,700平方米 之间，并实现了可观的投资回报率。然而，受中国经济环境 影响，消费者信心有所减弱，二零二四年零售租金调幅略微下 降，为-1.1%。 尽管面临谨慎的经营环境，我们的产业园组合仍保持了强劲 的出租率水平，表现优于或与市场持平。通过针对性的租赁策 略，我们成功吸引了半导体和工程等重点领域的国际及国内租 户。由于市场供应增加，占我们总租金收入25.8%的产业园 组合出现租金负增长，为-4.5%。然而，腾飞新苏资产组合逆 势而上，实现了3.1%的正向租金调幅。我们通过聚焦中国政 府重点扶持的关键科技领域，并与地方政府合作提供租户激 励措施，持续推动产业园迈向未来高增长机遇。 与此同时，尽管面临供应增加的挑战，我们成功稳定了物流 资产组合的表现，出租率达到97.6%，远高于市场平均水平的 78.0%4。二零二四年十二月，凯德中国信托与一家第三方物流 租户签订了为期八年的整租租约，上海奉贤物流园实现满租， 为我们的物流资产组合降低了风险。基于我们优先关注物流资 产出租率的策略，我们在上海奉贤、昆山巴城和武汉阳逻的 物流园实现了满租或接近满租。这主要得益于第三方物流企 业以及智能家电和食品行业租户的需求驱动。此外，成都双 流物流园的出租率在二零二四年显著提升至90.7%，同比增长 22.9%。物流板块占我们投资组合总租金收入的3.5%，租金 调幅率为-24.5%，与市场趋势一致。 总体而言，零售商场业务的积极表现弥补了新经济资产的表现， 凸显了我们多元化投资组合的韧性。凭借坚实的基础和优质 的投资组合，我们有能力应对当前的市场动态，并推动各资产 类别的可持续增长。 提升投资组合价值 在凯德中国信托，我们持续优化重构投资组合，以提升资产 质量，同时通过资产增值举措推动有机增长。对于增长潜力 有限的成熟资产，我们会考虑出售，从而将资金重新配置到 更高质量的投资中。二零二四年一月，我们以8.42亿元人民 币的价格完成了对凯德MALL• 双井的出售，退出资本化率为 2.8%。出售所得资金用于偿还借款，优化资产负债表。 二零二五年，我们将优先通过适时的资产增值计划和重新切 分租赁空间，释放传统主力空间的价值。在凯德MALL• 望京， 8,800平方米的原主力超市空间将被改造为一个新概念超市， 并引入潮流零售品牌和受欢迎的餐饮门店，预计于2025年第 四季度完工。此外，我们还计划在二零二五年推出更多举措， 重点关注提升客流并紧跟不断变化的消费趋势，以进一步增 强我们的零售资产组合。 与此同时，我们将继续致力于提升产业园和物流园的租用率， 并深化与租户的合作关系。同时，我们将坚持执行严谨的资产 组合优化策略，以确保资产结构的稳健性和多元化。 审慎的资本管理 积极主动的资本和风险管理是我们策略的核心，这确保我们 拥有健康的资产负债表和多元化的融资渠道。这一年，我们 在到期日前以较低的利率为二零二五财政年到期的贷款完成了 再融资。二零二四财政年，凯德中国信托节约了500万新元的 财务成本，主要得益于利用出售凯德MALL• 双井所得资金偿 还了计息贷款，二零二三年发行的自由贸易区债券，以及中国 在二零二四年将五年期贷款市场报价利率降低60个基点。此 外，我们将平均年债务成本从二零二三财政年的3.57%降低 至本财年末的3.51%。 1 包括自由贸易区债券、人民币债券，以及针对新元贷款兑人民币的跨币种利率互换。截至2024年12月31日，包括远期对冲在内，人民币债务占总债务的比例约为38%。 2 不包括已于二零二三年三月停止运营的凯德七宝购物广场以及于二零二四年一月脱售的凯德广场•双井的贡献。 3 在二零二三财政年，凯德中国信托完成了凯德广场•雨花亭、乐峰广场、凯德MALL•大峡谷的三项资产增值计划。 4 根据高力国际独立市场二零二四年第四季度的研究报告。 13 Annual Report 2024
致信托单位持有人之信函 二零二四年十月，我们发行了4亿元离岸人民币债券，年利率 为2.9%，到期日为二零二七年，用于置换利率较高的新加坡 元贷款。此举将我们的人民币计价债务比例从二零二三财政年 的20%提升至本财年的35%1，以充分利用中国较低的借贷成 本。 我们保持了健康的利息覆盖率和负债率5，各为3.0倍和 41.9%，远高于监管要求的1.5倍和低于50%的标准6。同时， 我们维持了良好的债务到期分布，平均到期期限为3.4年。二 零二四财政年，我们将可持续发展相关贷款与总融资的比例从 二零二三年十二月三十一日的31%提升至42%，进一步强化 了我们对可持续增长的承诺。总体而言，我们审慎的资本管理 以及发起人的强力支持，为我们未来的融资机会奠定了有利 基础。 树立可持续发展新标杆 可持续发展始终是我们长期策略的核心支柱。在二零二四 年全球房地产业可持续标准评估中，凯德中国信托连续第二 年荣获五星评级，并在公开披露评估中连续第六年获得“A” 级评分。此外，凯德广场• 诺和木勒、凯德广场• 学府、腾 飞新苏资产组合7 以及新加坡杭州科技园二期项目均获得了 LEED（能源与环境设计先锋）金级认证，这使得我们获得 绿色认证的资产占比（按建筑面积计算）提升至60%（截至 2024 年 12 月 31 日）8，彰显了我们对环境保护的坚定承诺。 更多关于可持续发展举措的详细信息，请参阅本报告中的“环 境、社会及治理亮点”部分。 展望 中国经济在二零二四年增长了5%9。年内，中国政策制定者推 出了一系列财政和货币刺激措施，包括将五年期贷款市场报价 利率下调60个基点至3.6%、注入流动性以及承诺支持私营 领域。二零二五年初，政府进一步采取了全国范围内公务员薪 资调整以及启动“双升级计划”等措施，旨在鼓励消费品以旧 换新和设备升级，预计未来还将有更多刺激政策出台。尽管这 些举措预计将在二零二五年逐步见效并推动经济复苏，但企业 和消费者信心的恢复可能需要时间。 我们将持续关注地缘政治发展、国际贸易动态以及中国的经 济支持措施，这些因素对塑造中国的发展方向至关重要。展 望未来，我们对中国长期前景保持积极态度，并将专注于把 握这些机遇，为凯德中国信托创造价值。 奖项与董事会更新 凯德中国信托于二零二四年十二月在IR杂志论坛暨东南亚颁 奖典礼上荣获“最佳年度报告（小型股）”奖项，表彰了我们 致力于透明度和卓越报告的努力。此外，凯德MALL• 西直门 被赢商网评为中国最受欢迎的一百家购物中心之一，这充分证 明了我们在运营方面的卓越表现。 作为领导层更新的一部分，陈子威先生于二零二五年一月一日 卸任首席执行官的职务。我们对陈先生在过去七年中的领导表 示衷心感谢，在他的带领下，凯德中国信托不断取得新的成就。 我们祝愿他在上任凯德投资的新职务后一切顺利。 同时，我们热烈欢迎蔡敬金先生于二零二五年一月一日加入董 事会，担任非执行独立董事及审计与风险委员会成员。蔡先 生拥有丰富且多元化的房地产经验和专业知识。 我们的单位持有人、业务合作伙伴、租户和员工在过去一年中 给予我们坚定的支持，我们谨代表董事会表示衷心感谢。展 望未来，凯德中国信托审慎的资本管理和良好的业绩纪录为 我们应对中国不断变化的零售和商业环境奠定了坚实基础，同 时我们将抓住新兴机遇，为单位持有人带来可持续的回报。 陳繼豪 主席 陈建良 首席执行官 5 该比率依据修订后的《房地产基金附录》指引（自2024年11月28日起生效）计算，具体方法为：将过去12个月的息税折旧摊销前利润EBITDA（剔除衍生工具及投资物业公允价值 变动以及外汇折算的影响）除以过去12个月的利息支出、借款相关费用及混合证券（即永续证券）的分配金额。 6 自二零二四年十一月二十八日起，新加坡金融管理局对所有房地产投资信托实施了最低利息覆盖率为1.5倍的要求，并设定了调整至50%的总杠杆率上限。 7 腾飞新苏投资组合的研发大楼一至六号楼获得了LEED金奖认证。 8 包括由凯德中国信托发起人－凯德投资管理的物业。 9 资料来源：中国国家统计局。 14 CapitaLand China Trust
Trust Structure Organisation Structure THE MANAGER CAPITALAND CHINA TRUST MANAGEMENT LIMITED Board of Directors Investment & Portfolio Management Finance Investor Relations Chief Executive Officer Unitholders CapitaLand China Trust Management Limited The Manager Singapore/Hong Kong SAR/BVI Companies1 Project Companies2 Properties The Property Managers Dividends and Interest Income Dividends Distributions Property Manager’s Fees Property Management Services Management services Management fees Acts on behalf of Unitholders Trustee fees Net Property Income Ownership and Shareholder’s Loans Ownership and Shareholder’s Loans Holdings of Units Ownership SINGAPORE/ HONG KONG SAR/ BRITISH VIRGIN ISLANDS CHINA 1 Interest income and principal repayment of shareholder’s loans from the Project Companies are payable to the Singapore/Hong Kong SAR/British Virgin Islands Companies (where applicable). 2 Includes Project Companies which are not wholly owned by CLCT. In such instances, CLCT receives a proportionate share of dividends, and principal repayment of shareholder’s loans from the Project Companies for the properties (where applicable). HSBC Institutional Trust Services (Singapore) Limited The Trustee 15 Annual Report 2024
Board of Directors • Bachelor of Business Administration (Honours), National University of Singapore • Master of Public Administration, Harvard University, USA • Advanced Management Program, Wharton Business School, University of Pennsylvania, USA Date of first appointment as a Director 1 August 2023 Date of appointment as Chairman 23 April 2024 Length of service as a Director (as at 31 December 2024) 1 year 5 months • Bachelor of Accountancy (First Class Honours), Nanyang Technological University of Singapore • Master of Business, Nanyang Technological University of Singapore • Chartered Financial Analyst® and Member, CFA Institute Date of first appointment as a Director 1 January 2025 Present directorships in other listed companies • Hong Leong Finance Limited Present principal commitments (other than directorship in other listed company) • CapitaLand China Trust Management Limited (Manager of CapitaLand China Trust) (Chairman) • Gambling Regulatory Authority (Chairman) • National Healthcare Group (Chairman) Other major appointments • MOH Holdings Pte Ltd (Director) • Nomura Singapore Ltd (Chairman) • Nomura Asia-Pacific Holdings Ltd (Director) • Temus Pte Ltd (Director) Past directorships in listed companies held over the preceding three years • Chip Eng Seng Corporation Ltd1 Awards • Public Administration Medal (Silver) • Public Administration Medal (Gold) Present directorships in other listed companies Nil Present principal commitments • Chief Executive Officer and Executive Director, CapitaLand China Trust Management Limited (Manager of CapitaLand China Trust) Past directorships in listed companies held over the preceding three years Nil 1 Delisted from the official list of the Singapore Exchange Securities Trading Limited on 11 April 2023. Chip Eng Seng Corporation Ltd is now known as Acrophyte Pte Ltd. Tan Tee How, 65 Chairman Non-Executive Independent Director Chan Kin Leong Gerry, 49 Chief Executive Officer Executive Non-Independent Director 16 CapitaLand China Trust
• Bachelor of Commerce (Honours), Nanyang University, Singapore Date of first appointment as a Director 20 April 2017 Length of service as a Director (as at 31 December 2024) 7 years 8 months • Bachelor of Science (Estate Management) (First Class Honours), National University of Singapore • Master in Business (Finance), Indiana University, USA • PhD in Finance, Indiana University, USA • Chartered Financial Analyst® and Member, CFA Institute Date of first appointment as a Director 1 January 2022 Length of service as a Director (as at 31 December 2024) 3 years Present directorships in other listed companies • China Yuchai International Limited • ValueMax Group Limited Present principal commitments Nil Past directorships in listed companies held over the preceding three years Nil Present directorships in other listed companies Nil Present principal commitments • National University of Singapore (Professor of Real Estate) Past directorships in listed companies held over the preceding three years Nil Neo Poh Kiat, 74 Non-Executive Independent Director Professor Ong Seow Eng, 64 Non-Executive Independent Director 17 Annual Report 2024
Board of Directors • Member, Institute of Singapore Chartered Accountants • Fellow, Association of Chartered Certified Accountants, United Kingdom • Senior Accredited Director, Singapore Institute of Directors Date of first appointment as a Director 1 May 2022 Length of service as a Director (as at 31 December 2024) 2 years 8 months • Fellow, Association of Chartered Certified Accountants, United Kingdom • Fellow, Institute of Singapore Chartered Accountants • Senior Accredited Director, Singapore Institute of Directors Date of first appointment as a Director 1 October 2023 Length of service as a Director (as at 31 December 2024) 1 year 3 months Present directorships in other listed companies • Plato Capital Limited Present principal commitments Nil Past directorships in listed companies held over the preceding three years Nil Present directorships in other listed companies Nil Present principal commitments • Asia Philanthropic Ventures Pte Ltd (Director) • Singapore Pools (Private) Limited (Director, Chair of Audit and Risk Committee, Member of Nomination Committee) • Tote Board, Singapore (Member of Audit and Risk Committee) • United Nations Entity for Gender Equality and the Empowerment of Women (UN-Women), New York (Chair of the Advisory Committee on Oversight) Past directorships in listed companies held over the preceding three years Nil Tay Hwee Pio, 56 Non-Executive Independent Director Wan Mei Kit, 65 Non-Executive Independent Director 18 CapitaLand China Trust
• Degree of Bachelor of Accountancy (Honours), The University of Singapore (now known as the National University of Singapore) Date of first appointment as a Director 1 January 2025 • Master of Economics, University of Pantheon Sorbonne, France • Bachelor of Science (Major Psychology), University of Southern Queensland, Australia • Master of Business Administration, IMD Business School, Switzerland Date of first appointment as a Director 16 June 2023 Length of service as a Director (as at 31 December 2024) 1 year 7 months Present directorships in other listed companies Nil Present principal commitments Nil Past directorships in listed companies held over the preceding three years • Japan Hotel REIT Advisors Co., Ltd. (Asset Manager of Japan Hotel REIT Investment Corporation) Present directorships in other listed companies Nil Present principal commitments • CapitaLand Investment Limited (Group Chief Corporate Officer) Other major appointments • French Alumni (President) • National Healthcare Group Pte Ltd (Director) • SPH Media Holdings Pte Ltd (Director) Past directorships in listed companies held over the preceding three years Nil Awards • Public Administration Medal (Silver) by the Singapore Government (2017) • Knight of the French Order of the Legion of Honor (Chevalier de la Legion d’Honneur) by the French Government (2022) Chua Keng Kim, 69 Non-Executive Independent Director Quah Ley Hoon, 48 Non-Executive Non-Independent Director 19 Annual Report 2024
Board of Directors • Master of Engineering (First Class Honours) Degree in Electrical and Electronic Engineering, Imperial College of Science, Technology and Medicine, University of London, UK • Executive Master of Business Administration (Honours) Degree, The University of Chicago Booth School of Business, USA Date of first appointment as a Director 26 October 2021 Length of service as a Director (as at 31 December 2024) 3 years 2 months • Bachelor of Accountancy (Honours), Nanyang Technological University of Singapore • Chartered Financial Analyst® and Member, CFA Institute Date of first appointment as a Director 1 April 2017 Length of service as a Director (as at 31 December 2024) 7 years 9 months Present directorships in other listed companies Nil Present principal commitments • CapitaLand Investment Limited (Chief Executive Officer, China) Other major appointments • ULI China Mainland Executive Committee (Member) Past directorships in listed companies held over the preceding three years Nil Present directorships in other listed companies Nil Present principal commitments • CapitaLand Investment Limited (Group Chief Risk Officer) Other major appointments • Real Estate Investment Trust Association of Singapore (REITAS) (Treasurer) Past directorships in listed companies held over the preceding three years Nil Puah Tze Shyang, 53 Non-Executive Non-Independent Director Tan Tze Wooi, 51 Non-Executive Non-Independent Director 20 CapitaLand China Trust
Management Team Joanne Tan Chief Financial Officer (CFO) Joanne leads CLCTML’s Finance and Treasury team, overseeing the accounting, financial and management reporting, capital management, as well as risk management and compliance. Joanne’s team collaborates with Investment and portfolio’s management team to evaluate and execute acquisition and divestment plans which align with CLCT’s investment strategy. Joanne brings 26 years of experience in accounting, financial reporting and capital management. She joined CapitaLand in 2005 and has led the CLCTML Finance team since 2010. Joanne was a member of the teams involved in the listing of CLCT in 2006 and CapitaLand Malls Asia in 2009. Prior to joining CLCTML, she gained extensive experience within the CapitaLand Group, including roles related to China and Japan private funds. Joanne is a Chartered Accountant (CA) with the Institute of Singapore Chartered Accountants and holds a professional degree with the Association of Chartered Certified Accountants (ACCA). Chan Kin Leong Gerry Chief Executive Officer (CEO) Gerry is the CEO of the manager of CLCT. He is responsible for leading and driving CLCT’s strategy, growth and performance, as well as overseeing its day-to-day operations. Gerry has over 20 years of experience spanning investment, divestment, asset management, project development and capital markets, bringing with him a track record of driving strategic growth and value creation. Before joining CLCT, Gerry was Managing Director, REIT Investments at CapitaLand Ascott Trust (CLAS) where he was responsible for directing investment strategies, managing portfolio assets, and leading asset enhancement initiatives. Earlier in his career, Gerry held several leadership positions within the CapitaLand Group. Gerry holds a Master of Business and a Bachelor of Accountancy (First Class) from Nanyang Technological University, Singapore. He is also a Chartered Financial Analyst®. You Hong Head, Investment & Portfolio Management (IPM) You Hong leads the IPM team at CLCTML, creating value for Unitholders through strategic acquisitions, divestments, asset management, and enhancement initiatives. The IPM team works closely with property managers to implement strategies that improve operational performance and manage property expenses. You Hong has 19 years of experience in real estate that spans various areas including investment and asset management, private fund management, risk management and real estate financing. Prior to joining CLCTML, You Hong was a fund manager for CapitaLand sponsored private funds, and an investment and asset manager based in Shanghai office. You Hong holds a Bachelor of Science (Honours) in Quantitative Finance from the National University of Singapore. Nicole Chen Head, Investor Relations (IR) Nicole leads the IR function at CLCTML, fostering strategic communications and relationships with investors and stakeholders. The IR team ensures two-way engagement and delivers key materials, including press releases, annual reports, and presentations, to convey CLCT’s strategies and plans effectively. Nicole has more than 10 years of investor relations and corporate communications experience in both in-house as well as agency positions. She has led client servicing teams and managed multi-channel, multimarket programmes across Asia-Pacific, focusing on reputation building, positioning and content creation in both IR and PR agencies. Nicole is a Chartered Accountant of Singapore and a holder of the International Certificate in Investor Relations. She has a Master of Science in Communication Management (Dean’s List) and a Bachelor of Accountancy from the Singapore Management University. She has also obtained the Advanced Certificate in Generative AI, Ethics and Data Protection from the Singapore Management University. 21 Annual Report 2024
investor.clct.com.sgRkJQdWJsaXNoZXIy NTM2MDQ5