CapitaLand Malaysia Mall Trust | Annual Report 2020

VALUE CREATION The Manager proactively undertakes retail and asset management initiatives to continually refresh and introduce new experiences in CMMT’s malls to enhance their attractiveness. In 2020, CMMT embarked on an asset enhancement initiative aimed at rejuvenating Gurney Plaza and enhancing shopper experience. We improved shopper circulation on Level 4 with the creation of a contemporary food hall. The rejuvenation works amounted to RM13.3 million and was completed in the third quarter of 2020. With a seating capacity of 600 pax, the spacious 33,000 sq ft food haven features local heritage street food to international delights. LEASE RENEWALS AND NEW LEASES For the leases that expired in 2020, the rental of the first year of the renewed/new lease term eased by 11.8% on a portfolio basis against preceding rental rates at the end of typical three-year leases. The lower rental reversion was mainly due to the lower performance from the malls as a result of movement control order measures implemented to contain the spread of the COVID-19. Until the challenging situation normalises, CMMT’s ongoing priority remains on stabilising its portfolio and building greater resilience in its retail ecosystem. Summary of Renewals/New Leases (excluding newly created and reconfigured units) (as at 31 December 2020) Property Number of Renewals/ New Leases Change in Rental Rates 1 (%) Gurney Plaza 111 (7.4) East Coast Mall 69 (1.5) Sungei Wang Plaza 27 (23.1) 3 Damansara Property 24 (16.8) The Mines 79 (33.1) CMMT Portfolio 310 (11.8) 1 Change in the current rental rates versus the preceding rental rates. OPERATIONS REVIEW 34 CAPITALAND MALAYSIA MALL TRUST • ANNUAL REPORT 2020