CapitaRetail China Trust : Annual Reports And Related Documents

ANOTHER

DECADE OF EXCELLENCE

Annual Report 2016

Corporate Profile

First China shopping mall real estate investment trust in Singapore

CapitaLand Retail China Trust (CRCT) is the first China shopping mall real estate investment trust (REIT) in Singapore, with a portfolio of 11 income-producing shopping malls. Listed on the Singapore Exchange Securities Trading Limited (SGX-ST) on 8 December 2006, it is established with the objective of investing on a long-term basis in a diversified portfolio of income-producing real estate used primarily for retail purposes and located primarily in China, Hong Kong and Macau.

The geographically diversified portfolio of quality shopping malls is located in seven of China's cities. The malls are CapitaMall Xizhimen, CapitaMall Wangjing, CapitaMall Grand Canyon, CapitaMall Anzhen and CapitaMall Shuangjing in Beijing; CapitaMall Xinnan in Chengdu, Sichuan Province; CapitaMall Qibao in Shanghai; CapitaMall Minzhongleyuan in Wuhan, Hubei Province; CapitaMall Erqi in Zhengzhou, Henan Province; CapitaMall Saihan in Hohhot, Inner Mongolia; and CapitaMall Wuhu in Wuhu, Anhui Province.

All the malls in the portfolio are positioned as one-stop family-oriented shopping, dining and entertainment destinations for the sizeable population catchment areas in which they are located, and are accessible via major transportation routes or access points. A significant portion of the properties' tenancies consists of major international and domestic retailers such as Beijing Hualian Group (BHG), Carrefour and Wal-Mart under master leases or long-term leases, which provide CRCT's unitholders with stable and sustainable returns. The anchor tenants are complemented by popular specialty brands such as Häagen-Dazs, innisfree, KFC, Nanjing Impressions, Nike, Pandora, Sephora, Starbucks, UNIQLO, Watsons and ZARA.

CRCT is managed by an external manager, CapitaLand Retail China Trust Management Limited (CRCTML or the Manager), which is an indirect wholly owned subsidiary of CapitaLand Limited, one of Asia's largest real estate companies headquartered and listed in Singapore.

Vision

Sustainable and resilient REIT with a professionally managed portfolio of quality retail real estate across China.

Mission

Deliver sustainable income growth to our Unitholders and value add to the community and stakeholders by enhancing organic growth through proactive asset management; creating new value through innovative asset enhancement strategies; and capitalising on yield-accretive acquisitions growth.

ANOTHER DECADE OF EXCELLENCE‌

CapitaLand Retail China Trust (CRCT) is the first and largest China-focused retail real estate investment trust listed on Singapore Exchange Securities Trading Limited (SGX-ST), providing investors with an avenue to tap the growth of China's rising consumerism. In the first decade of our listing from 2006 to 2016, we enlarged our portfolio through strategic acquisitions and enhanced the competitiveness of our malls through proactive asset management and constant innovation. During this period, our portfolio size expanded fourfold and both annual net property income and distributable income tripled. As we enter a new decade, we will remain steadfast in our commitment to excellence and strive to continue delivering sustainable income growth for our Unitholders.

Contents

1. Year in Brief 2016

2. 2016 Highlights

3. Financial Highlights 05Yea5r-Financial Highlights 06rusTt Structure 07ganOisration Structure 08ssaMgee to Unitholders 14opePrrty Portfolio

16aluVe Creation

Corporate Governance & Transparency

17d oBf oDairrectors

23rusTt Management Team 24oraCteoGrpovernance 47nteErprise Risk Management 50vesItnor & Media Relations 52e PUernfiotrPmriacnce

54 Sustainability Management

64 Financial Review

69 Capital Management

76ortfPolio Details

Financials & Additional Information

85 Financial Statements 156teIrnested Person Transactions 157tisSttiacs of Unitholdings 160ecMtoarlyl Dir IBCorCatoerpInformation

02‌

Year in Brief 2016

Annual Report 2016

February

July

o• r fiFnancial year 2015, CRCT achieved distributable income of S$89.2 million, 10.3% growth year-on- year. For the same period, distribution per unit (DPU) grew 7.9% year-on-year to 10.6 cents.

d• thCeliGncohldeaward for Best Investor Relations

(REITs and Business Trusts category) at the Singapore Corporate Awards 2016.

• Completed the upgrading works of CapitaMall Qibao's façade.

  March

  August

  a• idPa DPU of 5.23 cents to Unitholders for the period 1 July to 31 December 2015.

• Announced the proposed acquisition of CapitaMall Xinnan (formerly known as Galleria), located in south of Chengdu, Sichuan Province, China.

• Completed the upgrading works of CapitaMall Wangjing's façade.

April

September

a• nnHuealldgeneral meeting with all the resolutions duly passed.

a• idPa DPU of 5.32 cents to Unitholders for the period 1 January to 30 June 2016.

June

a• rtPicipated in the "REITs Symposium 2016" jointly organised by REITAS (REIT Association of Singapore) and ShareInvestor to promote REIT as an investment option, for the second consecutive year.

Completed the upgrading works of CapitaMall Saihan's façade.

•

c• quAisition of CapitaMall Xinnan was completed.

a• rtPicipated in the "7th Singapore Corporate

Governance Week - Statement of Support" organised by Securities Investors Association (Singapore) in demonstration of CRCT's commitment to good corporate governance.