CEO's Message

Dear Stakeholders,

In addition to our financial commitment to deliver stable and sustainable distribution per Unit to our Unitholders, we are committed to sustainable policies and practices which will benefit all stakeholders. To this end, sustainable practices are imbued in our respective areas of focus, namely corporate governance, risk management, environment stewardship, workplace health and safety, people and the community, as well as products and services. As wholly owned subsidiaries of CapitaLand, we (the Manager) and our Property Managers are aligned with CapitaLand's core values and commitment to sustainability.

Since 2012, CCT's sustainability report has been incorporated into our annual report. The following year, we initiated a framework-driven sustainability report that adheres to the Global Reporting Initiatives (GRI) Global 3.1 Guidelines. A testament to our commitment to sustainability in a changing business landscape, our report this year has progressed to be in line with GRI Global 4 (G4) Core level Guidelines.

During the year, we advanced our sustainability ef forts in line with CapitaLand's Sustainable Building Guidelines aimed at lowering carbon footprint and energy consumption, enhancing water management, reducing waste and promoting diversity. Working with our term contractors, we now use eco-friendly cleaning and servicing products across our properties, while embracing new sustainable measures including the incorporation of more energy-efficient equipment when we embark on asset enhancement initiatives at our existing properties and the installation of electric vehicle charging stations to benefit green car drivers at our office buildings.

We also remained proactive in combating EHS issues. With haze levels among the highest in recent years, we fitted our properties with emergency equipment and air filters, while ensuring that our staff, tenants and visitors have access to N95 masks when necessary. Similarly, emergency procedures were put in place in the event of a MERS-CoV outbreak – in line with the authorities' guidelines and Disease Outbreak Response System Condition (DORSCON)'s framework alert levels.

At the same time, we strive to forge a closer relationship with our stakeholders. To establish a common contact point with our tenants, we engaged a team of Tenant Relations Ambassadors and Specialists to better serve tenants and visitors, and launched the proprietary Digital Online Tenancy System which facilitates the smooth and paperless handover of office space to new tenants. We also increased our tenant engagement activities which ranged from our Gifts of Joy programme to treats for tenants to talks on greening the office. During the year, tenants also contributed recycled material which was used in an artwork by students from LASALLE College of the Arts, while CCT Green Week 2015 unveiled a series of programmes targeted at raising awareness of everyday green practices among tenants.

Our focus on our green philosophy has resulted in all eligible properties maintaining the Green Mark Award with four out of nine properties attaining "Platinum", and we remain committed to securing future renewals of the certification.

Over the year, our quest for sustainability has supported the Trust's growth, generating total deposited properties and market capitalisation of S$7.7 billion and S$4.0 billion respectively as at 31 December 2015. Notably, distributable income rose 2.1% YoY to reach S$254.5 million, while DPU marked a 1.9% increase to 8.62 cents for the year in review, notwithstanding an environment of economic challenges.

In 2015, the Monetary Authority of Singapore introduced new measures including additional regulatory disclosure requirements for REITs concerning board composition and membership, as well as procedures for developing remuneration policies and the disclosure of remuneration. Consequently, we are currently adjusting our corporate governance practices, thereby continuing the high standards expected of a responsible company.

Going forward, we seek to build on our achievements in the past year. Recognising the value in technology, we will leverage innovation and technology to engage with our stakeholders, to understand and meet their needs and expectations, drive the efficiency of our operational buildings and augment customer experience across our properties, so as to drive sustainability.

Lynette Leong
Chief Executive Officer
CapitaLand Commercial Trust Management Limited

Click here to view full Sustainability Report