OUE Commercial REIT - Annual Report 2021

PORTFOLIO REVIEW PORTFOLIO LEASE EXPIRY PROFILE OUE C-REIT has a well-spread out portfolio lease expiry profile as at 31 December 2021. Only 13.3% of office and 3.4% of retail leases by gross rental income (excluding provision of rental rebates and turnover rent) are due for renewal in 2022. The weighted average lease term to expiry by gross rental income is 3.5 years as at 31 December 2021. Notes: 9 As at 31 December 2021, office and retail leases expiring on 31 December 2021 contributing 0.4% and 0.02% of portfolio gross rental income respectively had not been renewed. 10 Commercial segment comprises the office and/or retail contribution from OUE Bayfront (50.0% interest), One Raffles Place (67.95% effective interest), OUE Downtown Office, Lippo Plaza (91.2% strata interest) and Mandarin Gallery COMMERCIAL SEGMENT 10 OUE C-REIT’s portfolio of strategically located, high quality Grade A commercial assets, with an established tenant base from diverse sectors has underpinned a resilient performance through the COVID-19 pandemic. While the business environment remained uncertain overall which sharpened occupiers' focus on cost containment, the Manager continued to take proactive steps to manage the situation, prioritising occupancy as well as stream-lining costs, including deferment of non-essential capital and operating expenditure. To support tenants’ return to the workplace, the Manager adopted measures to provide a safe and conducive work environment. Through the Manager’s proactive portfolio management efforts, approximately 680,961 square feet of new leases and renewals were committed in 2021. New leases comprised about 38.5% of the space committed, with the demand supported by tenants from diverse trade sectors including Banking, Insurance & Financial Services; IT, Media & Telecommunications; Accounting & Consultancy Services; Energy & Commodities; Legal; Manufacturing & Distribution; Maritime & Logistics, as well as Pharmaceuticals & Healthcare. As at 31 December 2021, the committed occupancy for the commercial segment was 91.5%, 1.0 percentage points (“ppt”) lower YoY. OUE C-REIT’s Singapore property portfolio recorded a softer committed office occupancy of 91.2% as at year-end, as the recalibration of safe management measures in response to rising COVID-19 case counts during the year dampened leasing momentum. Nevertheless, average passing office rents were higher YoY for the Singapore portfolio as of December 2021, due to previous quarters of positive rental reversion. In Shanghai, office leasing demand surged in 2021 on the back of the economic recovery, driven by strong take-up from the financial services sector as well as the technology, media & entertainment, and telecommunications (“TMT”) sector given the burgeoning growth in the content creation industry. At the same time, significant office supply in both established and new business districts also entered the market which intensified leasing competition. Consequently, Lippo Plaza achieved committed office occupancy of 91.8%, up 5.3 ppt YoY, while average passing rents were 4.2% lower. With committed retail occupancy of 98.6%, overall committed occupancy for Lippo Plaza was 92.9% as at 31 December 2021. Portfolio Lease Expiry Profile by Gross Rental Income (%) 2025 2026 and beyond 2023 2024 2021 9 2022 0.4 0.02 Office Retail Hospitality 13.3 3.4 11.9 4.4 12.2 3.8 5.9 2.0 11.9 5.0 25.8 32 O U E COMM E R C I A L R E I T