CEO's Message

Dear Stakeholders,

In FY 2016, CCT delivered resilient portfolio performance and exceptional financial results amidst challenging market conditions. As we upheld sustainable business policies and practices concerning environmental, social and governance aspects, CCT's total deposited properties rose to S$8.8 billion and its market capitalisation increased to S$4.4 billion as at end December 2016. Distributable income registered a 5.7% increase YoY to S$269.0 million, translating to a 5.3% rise in DPU to 9.08 cents.

As one of Singapore's largest commercial real estate owners, we recognise the impact that our developments have on the environment and our stakeholders. We strive to minimise our buildings' carbon footprint, ensure workplace health and safety, establish a strong corporate governance and risk management culture, and shape buildings that are accessible to all in the community.

Being wholly owned subsidiaries of CapitaLand, the Manager and the Property Managers of CCT uphold CapitaLand's core values and commitment to sustainability. In 2012, CCT was among the first of Singapore's REITs to incorporate sustainability reporting into its annual report. We have since adopted framework reporting that adheres to the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines.

CCT continually strives to enhance operational efficiency. In FY 2016, we reduced energy and water usage psm by 18.8% and 19.0% respectively compared to base year 2008. While there are always operational challenges in improving our performance, we remain committed to achieve CapitaLand's 2020 eco-efficiency targets of 20.0% reduction in energy and water usage compared to base year 2008 and maintaining proactive measures in the greening of the Trust's portfolio and promotion of eco-friendly practices.

Proactive stakeholder engagement is instrumental in ensuring an enduring sustainability journey for CCT. We engage our tenant and employee communities and collaborate with our supply chain, business partners and government agencies to promote sustainable workplace practices through various initiatives and programmes.

Participation and contributions from CapitaLand Hope Foundation, tenants and CapitaLand employees garnered about S$48,300 for our adopted charity, The Straits Times School Pocket Money Fund (STSPMF) in 2016. This is through a series of activities with a philanthropic focus such as CCT Eco Race, STSPMF coin bank donation, electronic waste collection and recycling drive as well as Gifts of Joy.

Keeping our momentum in stakeholders' engagement on the sustainability front is CCT Eco Race, a race that tests one's knowledge of environmental issues and fitness level. This year's race attracted more than 370 tenant and partner participants. Other green initiatives include an electronic waste collection and recycling drive for the first time as well as sharing sessions on sustainable features and practices for offices. A Green Landlord Focus team comprising representatives from different departments of CapitaLand aided tenants in attaining the BCA Green Mark for Office Interior (GMOI) certification and encouraged green behaviour. Six tenants received the GMOI awards in 2016.

As part of our tenant engagement programme, the annual Gifts of Joy initiative fulfilled a record 673 wishes of beneficiaries from various charities and boosted volunteerism among tenants and employees.

We also hosted breakfast talks and networking sessions for the C-suites of our tenants and distributed biannual complimentary treats to our tenant community. Partnering Fitness First and the Health Promotion Board (HPB), we promoted the well-being of our employees and tenants with weekly workout sessions under the Healthy Workplace Ecosystem programme. On the environmental, health and safety front, we maintained a healthy and safe workplace, collaborating with our tenants and supply chain to mitigate risks including the Zika virus and haze.

In enhancing service excellence, we harnessed the sharing economy and technology to pilot an online multi-service platform that enables tenants to gain convenient access to curated goods and services at special discounts and/or deliveries.

We recognise that our sustainability journey will have new challenges and expectations. Going forward, we will engage our stakeholders in increasingly larger roles. We will also leverage technology and innovations to improve our buildings' operational efficiency and enhance stakeholders' experiences to create a vibrant tenant community and sustainable "office of the future".

Lynette Leong
Chief Executive Officer
CapitaLand Commercial Trust Management Limited

Click here to view full Sustainability Report