1H 2021 Interim Results Presentation - 20 August 2021 - ESR
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1H 2021 Interim Results Presentation 20 August 2021
Disclaimer
The presentation may contain projections and forward-looking statements that reflect the Company’s current views with respect
to future events and financial performance and are subject to certain risks, uncertainties and assumptions. In some cases,
these forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believe”,
“continue”, “could”, “estimate”, “forecast”, “plan”, “prepare”, “project”, “anticipate”, “expect”, “intend”, “may”, “will” or “should” or,
in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives,
goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. By their
nature, forward-looking statements involve known and unknown risk and uncertainty because they relate to future events and
circumstances. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and
actual results may differ materially from those in the forward-looking statements as a result of various factors and assumptions,
many of which are beyond the Company’s control. Prospective investors are cautioned not to rely on such forward-looking
statements. Neither the Company nor any of its affiliates, advisors, representatives or underwriters has any obligation to, nor do
any of them undertake to, revise or update the forward-looking statements contained in this presentation to reflect future events
or circumstances, except where they would be required to do so under applicable law.
This presentation material includes measures of financial performance which are not a measure of financial performance under
International Financial Reporting Standards (“IFRS”), such as Adjusted EBITDA and Core PATMI. These measures are
presented because the Company believes they are useful measures to determine the Company's financial condition and
historical ability to provide investment returns. Adjusted EBITDA and Core PATMI and any other measures of financial
performance in this presentation material should not be considered as an alternative to cash flows from operating activities, a
measure of liquidity or an alternative to net profit or indicators of the Company's operating performance on any other measure
of performance derived in accordance with IFRS. Because Adjusted EBITDA and Core PATMI are not IFRS measures, Adjusted
EBITDA and Core PATMI may not be comparable to similarly titled measures presented by other companies.
Data or information compiled by JLL has been reproduced in this presentation. While the ESR has taken reasonable care to
ensure that any data compiled by JLL and used in this presentation has been accurately reproduced, such data has not been
independently verified by the ESR, and JLL does not accept any liability in negligence or otherwise for any loss or damage
suffered by any party resulting from reliance on the information herein contained.
1
Contents
• 1H 2021 Key Highlights
• 1H 2021 Financial Highlights
• Industry Update
• 1H 2021 Operations Overview
• 1H 2021 Financial Overview
• New Phase Of Growth
• Outlook
• Appendix
2
1H 2021 Key Highlights
▪ Total AUM grew by 36.9% y-o-y to an all-
time high of US$36.3 billion
▪ Accelerating growth of Fund
Management EBITDA with
50.9% y-o-y growth
▪ PATMI rose 60.9% y-o-y to a
record high of US$214 million
▪ Raised US$2.5 billion with
new/upsized funds
▪ Record development work in progress
(WIP) of US$5.5 billion, up 57% from
1H 2020
▪ Robust leasing demand with over
1.6 million sqm space leased
across portfolio
▪ Balance sheet strength with reduced
cost of funding and a cash position of
US$1.1 billion
9-13 Link Way, Laverton North, Victoria, Australia 3
1H 2021 Financial Highlights
Total Segmental Total Core
+38.6% +60.9% +37.7%
EBITDA PATMI PATMI1
US$415m US$214m US$167m
Total Net Debt/
AUM +36.9%
Total Assets
+7.4pp Cash -25.3%
US$36.3b 30.6% US$1.1b
▪ Accelerating business performance across all three business segments despite the
continued impact of COVID-19
▪ Achieved record AUM of US$36.3 billion with accelerating growth in Fund Management
EBITDA (50.9% y-o-y growth)
▪ Disciplined capital management with strong cash position, diversified and lower cost of
funding
▪ Ability to "double down" on logistics / data centers via acquisition of ARA / LOGOS
Note:
(1) Excludes fair value on completed investment properties, equity-settled share option expenses and tax effects of adjustments 4
Section 1 Industry Update
ESR Jiangsu Friend — III Logistics Park,
China
5
APAC Logistics – Largest Secular Growth Opportunity in Asia
1 2 3
Rapid Rise of E- Digital Financialisation of
Commerce Transformation Real Estate
ESR has and will continue to uniquely leverage the largest secular trends to
further solidify its market leading position in APAC
6
1 Rapid Rise of E-Commerce
Post COVID-19, APAC Logistics Market Growth Continues to be Underpinned by E-commerce Across the Region
E-commerce penetration across Asia
1 The PRC 2 South Korea
40.4% 40.4% 38.2% 39.4%
35.8%
27.3%
2020 2024E 2024E 2020 2024E 2024E
before after before after
COVID COVID COVID COVID
4 India
11.2% 3 Japan
8.5% 12.7%
11.6%
6.5% 10.4%
2020 2024E 2024E 2020 2024E 2024E
before after before after
COVID COVID COVID COVID
5 Singapore 7 Indonesia 6 Australia
33.5%
17.5% 14.0% 15.0%
15.6% 14.5% 19.9% 12.5%
2020 2024E 2024E 2020 2024E 2020 2024E 2024E
before after before after
COVID COVID COVID COVID
Increasing e-commerce penetration will continue to
support long-term demand for modern logistics facilities
7
Source: Euromonitor
1 Rapid Rise of E-Commerce
E-Commerce Accelerated During COVID-19 and it is Here to Stay
Higher frequency for e-commerce platform over the
past 12 months(1) Average spending per order continued to increase(2)
Shopping frequency for e-commerce platforms per year Average spending per order on the platform (RMB)
Mogujie 20 Pinduoduo 177
30 177
Vipshop 31 Mogujie 249
34 221
Xiaohongshu 32 Xiaohongshu 270
34 257
Tmall Global/ Kaola 25 Vipshop 316
44 353
JD 43 Tmall Global/ Kaola 317
49 375
Pinduoduo 46 Taobao/ Tmall 362
51 406
Taobao/ Tmall 84 JD 425
95 571
0 20 40 60 80 100 0 100 200 300 400 500 600
2019 2020 2019 2020
Source: Euromonitor Source: Euromonitor
Low online retail penetration in Chinese fresh food Chinese packaged food online retailing is expanding
relative to other categories at a CAGR of 29% over 2015-2020
Online penetration by categories (2020) China - food retail sales by distribution channel
100%
Toys and games 71% 8 9 10 11 11 11
5 6 8 9 10 12
Consumer appliances 40% 80%
28 27 27 26 26 24
Beauty and personal care 34% 60%
Apparel & footwear 31%
40%
Consumer health 30% 58 58 56 55 54 53
20%
Home care 24%
Food and drink 10% 0%
2015 2016 2017 2018 2019 2020
0% 10% 20% 30% 40% 50% 60% 70% 80% Hyper/Supermarket Traditional grocery retailers Online retailing Others
Source: Euromonitor Source: Euromonitor
Notes: 8
(1) 2019 does not include Tmall Global
(2) All respondents who purchased on the platform at least once every 2-3 months
Risk / Reward For Logistics Will Continue To Transform Capital Values
Potential for meaningful cap rate compression in the APAC logistics real estate sector
Spreads between logistics & office cap rates (1)
2.9%
1.7%
1.3% 1.2% 1.2% 1.2%
0.4%
0.2%
0.0%
(0.4%)
Singapore Beijing Tokyo Seoul Shanghai Hong Kong Sydney Melbourne London US average
Cap rate tightening will drive higher logistics asset values, generating outsized returns for the asset class in APAC
APAC cities’ yield spreads are multiple times higher than mature markets
Spreads between logistics yields and debt cost, 4Q20 (2)
7.9%
6.9% 6.7% 6.7%
3.1% 5.2%
1.9% 2.0% 4.6% 4.5% 4.5% 4.5%
3.8% 3.4%
5.5% 2.5% 1.0% 3.3%
2.8% 2.7%
4.8% 4.8% 4.7% 3.5% 1.2%
3.2% 2.2%
2.7% 3.5%
1.4% 1.8% 1.8% 2.1%
0.6% 1.2% 1.0%
Guangzhou Singapore Beijing Shanghai Seoul Sydney Melbourne Tokyo Germany France US UK
Typical Cost of Debt Yields Spread Over Debt Cost
APAC offers more attractive yield spreads compared to more mature markets in the US and UK
Source: JLL, 4Q20
Notes:
9
(1) As of 2Q2020
(2) As of 4Q2020, debt costs are based on investment grade tenants; assuming prime assets and 5-years load term2 Digital Transformation Driving New Economy Real Estate
APAC Is Leading The Growth In Data Centers
APAC data traffic expected to grow exponentially due to demographic tailwinds
7.7GB to 14.4GB(2) c.34%
61.1% 2020-2025E mobile data usage in
of global hyperscale data centers
of global millennials live in APAC(1) expected to be located in APAC by
APAC
2021E(3)
Data consumption grew 4x in the Rapid growth in APAC emerging APAC EMs(3) outgrow all other
last five years markets(3) public cloud service market regions in data center capacity
Amount of data created, consumed, and stored (ZB) Public cloud service market size (US$Bn) 2019-2023E CAGR in data center capacity(4)
30%
64.2
27%
CAGR: 32.9%
61.1
41.0 18%
16%
33.0
CAGR: 34.6%
13%
26.0 12%
10%
18.0
15.5 6%
18.6
5% 5%
3% 2%
2015 2016 2017 2018 2019 2020 2019 2023E Hyperscale Wholesale Retail
Source: IDC, Statista APAC Emerging Markets LATAM
EMEA North America
Notes:
(1) Population aged 23-38
(2) According to GlobalData research 10
(3) Including China, India and Southeast Asia
(4) The percentages represent the 2019-2023E CAGR of the market size of carrier-neutral data centers (in terms of MW) across operating models and regions; market size is calculated by total capacity, which is the maximum
capacity as designedAPAC Is World’s Second Largest DC Region
ESR Has a Competitive Advantage in APAC Given Our Leading Presence Across Key Markets
Nordic
Canada 240 MW
450 MW
Western Eastern
Europe
Europe Greater
250 Japan &
3,000 MW China
South Korea
US 3,800 MW
1,350 MW
India
7,000 MW 750 MW
Middle East
/ Africa APAC
650 MW SEA
Latin 750 MW 7,000-7,250
America MW
500 MW
ANZ
Denotes ESR’s pipeline projects 450 MW
APAC data center spending to surpass US$35Bn APAC to grow to a power capacity of 12,000 MW
by 2024 to account for >35% of global market by 2026
11
Source: Synergy Research Dec 20203 The Financialisation of Real Assets in APAC
Institutionalization of Real Assets in APAC Has Just Begun with Significant Opportunity for Growth with the Launch
of New REIT Legislation Across the Region
US REIT Market has grown tremendously over the past two decades
Market cap evolution of US REIT market (US$Bn)
1,800
1,246
1,184
1,200
960 1,066 980
846 886
608
544
600
401 359 408
275 301 289 248
147 151 205 176
134
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Upcoming REIT markets in APAC provide a large secular growth opportunity
Total REIT market cap as % of 2020 real GDP
25% 19,273 325 1,312 4,292 2,443 1,618 14,483
(1)
22.8%
14% Over US$1Tn(2) opportunity
8.3%
7% 6.1%
US$125Bn(2)
US$143Bn(2) US$95Bn(2) US$890Bn(2)
3.2% 0.3% 0.2% 0.0%
0%
2020 Real GDP (US$Bn) Potential REIT Market Upside (US$Bn)
Source: Nareit, Oxford Economics
Notes:
(1) Relatively high percentage due to prevalence of non-Singapore assets being listed as S-REITs 12
(2) Estimated assuming a public REIT market in line with a mature market such as USA with total REIT equity market cap of 6.1% of GDPSection 2 1H 2021
Operations
Overview
ESR Amagasaki Distribution Centre, Japan#1 APAC Focused Logistics Real Estate Platform
Market leading positions in key markets
◼ ESR has over 22.6 million sqm GFA in operation and under development1 and a further c7.6 million
sqm GFA of development pipeline with MOUs2 signed across top tier markets with a high quality tenant base
1. China Platform 4. Australia Platform
US$6.1 billion of AUM with
#1 e-commerce landlord4 a development pipeline of 1.2
1 China mil sqm
#1 development pipelines5
Acquisition of A$3.8 billion
(approximately US$2.9 billion)
#2 largest portfolio of logistic Milestone Portfolio and
2 South Korea properties6
management platform
2. South Korea Platform 5. India Platform
3 Japan Established US$750
#1 largest owner of logistics
stock7 million JV with GIC to be
seeded with a ~2.2 million sq ft
build-to-core asset
5 India #1 development pipeline in
the Seoul Metropolitan Area7 1.6 million sqm GFA in
development pipeline8
Total AUM 3
(US$ billion)
1st publicly listed institutional
6 Singapore quality logistics asset focused 6. Singapore Platform
36.3 REIT in Korea
#1 non-Temasek affiliated
3. Japan Platform industrial REIT platform9 of 76
26.5 properties10
#1 development pipeline in
4 Australia the Greater Tokyo and Greater
Osaka regions7
7. Southeast Asia - Other
US$0.7 billion
7 Southeast Asia expansion of RJLF3, a
- Vietnam development JV with APG and Secured initial projects in
a global institutional investor in Vietnam and Indonesia
1H 2020 1H 2021 7 Southeast Asia July 2021
- Indonesia
Notes:
(1) Consisting of approximately 14.2 million sqm of GFA of completed properties, approximately 5.5 (6) As of 4Q 2019, in Greater Shanghai, Greater Beijing and Greater Guangzhou as measured by GFA
million sqm of GFA of properties under construction and approximately 2.9 million sqm of GFA to (7) By GFA from 2019 to 2020
be built on land held for future development as of 30 June 2021 (8) Development pipeline including MOU as of 30 June 2021
(2) MOUs as of June 2021 (9) In terms of number of assets
(3) As of 30 June 2021 (10) Including 58 properties in ESR REIT and 18 properties in Sabana REIT as of 30 June 2021
(4) In terms of proportion of total area occupied in China in comparison to only GLP as of September
2017 when GLP was privatised 14
(5) In Greater Shanghai, Greater Beijing and Greater Guangzhou from 2020 to 2021YTD 2021 Strategic Achievements
FEB MAY JUN
> ESR Australia partners > Purchased with new > ESR Kendall Square REIT JUL
DHL Supply Chain investor M&G a acquired two assets;
> ESR and
to develop 70K sqm significant stake in Anseong LP and Yongin
Tamil Nadu
pharmaceutical US$870 million ESR BRIC for US$145m and
Government AUG
distribution facility in Ichikawa DC from US$94.2m respectively.
APR sign MoU for
western Sydney. RJLF II. > Proposed
> Acacia Ridge Business Park two industrial
> 108k sq ft of industrial acquisition of
> Best Industrial Project of > First strategic asset in commenced redevelopment. parks.
space leased to ARA Asset
the Year at Realty+ HK which will be
CUBIC in Chennai, > JPY75b expansion of ESR > Plans to Management
Conclave & Excellence developed into a
India. Japan Logistics Fund III develop 36.5- (including
Awards 2021. 40MW data centre.
(“RJLF3”). acre, Grade A LOGOS) for
MAR > CPPIB and ESR industrial and
> Formed JV with BW on US$5.2b
upsize joint > Completion of acquisition of
240k sqm industrial logistics park
>BWX signed as investment in Korea A$3.8b Milestone Portfolio > Established
development project in Jalisana,
anchor at ESR Income JV to US$1b. and operating business from US$1b New
near HCMC, maiden India.
Clayton Business Blackstone, in partnership China
> Entered into entry into Vietnam.
Hub. with GIC. > Toys“R”Us Development
US$400m senior signs 10 years
> ESR-REIT acquired Platform with
> Plans to develop 38- unsecured corporate > Issued a further S$150m
10% stake in EALP lease with APG and
acre industrial and term loan facility at of perpetual step-up
from ESR, ESR Clayton RECO.
logistics park in Libor +2.75% and subordinated securities at
demonstrating support Business Hub.
Chakan, India. +3.25% for 3-year 5.65%.
and alignment.
and 5-year tranches, US$36.3b
> Inclusion in HSCI, as
respectively. > ESR Australia adds Jun 2021
well as Shanghai-
56k sqm with pre- AUM
Hong Kong Stock > Development of
commitments from two
Connect and US$2b+ multi-phase
anchors at Horsley
Shenzhen-Hong data centre campus
Logistics Park.
Kong Stock Connect. near Osaka CBD,
through acquisition of
> Issued S$200m
the asset and its
perpetual step-up
excess land.
subordinated
securities at 5.65%.
US$29.9b
Dec 2020
AUM
15
ESR Clayton Business Hub, AustraliaStrong Operational Performance
Quality and strength of portfolio fundamentals
▪ High portfolio occupancy of 89%1
▪ Well-staggered WALE of 3.8 years2 by income
▪ Strong leasing demand with 1.6 million sqm of space leased
INVESTMENT
across portfolio primarily driven by new economy
▪ Achieved 5% rental reversion on renewed leases1
▪ Total AUM rose 36.9% y-o-y to US$36.3 billion3
FUND
▪ Fund AUM grew 37.9% y-o-y to US$32.7 billion3
MANAGEMENT
▪ Fund management fees increased 48.2% y-o-y to US$124 million
▪ Commenced US$1.2 billion worth of developments in 1H 2021 and
Work In Progress grew 57% y-o-y to US$5.5 billion
DEVELOPMENT
▪ Achieved US$0.9 billion of development completions
▪ Robust landbank of over 2.9 million sqm across portfolio
Notes:
(1) Based on stabilised assets on balance sheet as at 30 June 2021
(2) Based on assets on balance sheet and portfolio assets in funds and investment vehicles by income for 1H 2021 16
(3) As at 30 June 2021Leased 1.6 million sqm Of Space Across Portfolio
Powered by new economy – top five leases by area
E-commerce E-commerce E-commerce E-commerce
Retail
& 3PL & 3PL & 3PL & 3PL
JD.com Coupang Alibaba 深圳市盈速达供应链 东莞金鹰仓储
管理有限公司 有限公司
Tenant
Market Cap: US$98b1 Market Cap: US$56b1 Market Cap: US$468b1 Market Cap: US$87b1
Market China South Korea China China China
Area leased in
1H 2021 262 206 112 71 60
(‘000 sqm)
Lease term
1–3 2–7 1–5 3 1–2
(years)
Strong demand for logistics space from high quality new economy tenants
Note:
(1) As of 19 August 2021 17Strategically Diversified In Key APAC Markets
Resilient to market changes and disruptions
Revenue Contribution AUM By Region1 GFA By Region1
By Region1,2
India/Others India/Others India/Others
2% 3% 7%
Australia
11% China
China Australia 21% Australia
33% 17% 13%
Singapore
7%
China
40%
Singapore
Singapore
8%
8%
South Korea
Japan South Korea 26%
35% Japan
12% Japan 16%
25% South Korea
16%
As of 30 June 2021
Notes:
(1) GFA includes completed properties, properties under construction and GFA on land held for future development. AUM includes portfolio assets owned directly by ESR and portfolio assets held in
the funds and investment vehicles
(2) Revenue excludes contribution from construction income
18Section 3 1H 2021
Financial
Highlights
ESR Bucheon Logistic Park, Korea
191H 2021 Key Financial Highlights
Revenue1 Adjusted EBITDA2
(US$ million) (US$ million)
178
+24.7% 215
142 +42.3%
151
1H 2020 1H 2021 1H 2020 1H 2021
Profit After Tax PATMI
(US$ million) (US$ million)
230
214
+58.8% 60.9%
145 133
1H 2020 1H 2021 1H 2020 1H 2021
▪ Delivered strong earnings across key business segments
▪ Well-diversified contributions from ESR’s core markets
Notes:
(1) Excludes construction income
(2) Adjusted EBITDA is calculated as profit before tax, adding back depreciation and amortization, exchange loss/(gain), finance costs, equity-settled share option and eliminating the effect of
20
interest income, and fair value gains on completed investment properties and investment properties under constructionWell-Equipped With Strong Balance Sheet
Proactive and disciplined debt management
Net Debt Finance Costs
(US$ million) (US$ million) 156
2
1
3
1,908 1,780 2,620
4,204 60
3,805 3,753 82
3,295 77
3,189 5 1
2,855 1 5
0
2
29 31
1,515 3
1,133 85 1
947
44 43
1H 2020 FY2020 1H 2021 1H 2020 FY2020 1H 2021
Total Equity Total debt and other borrowings Cash and bank balances Net debt
Net Debt / Total Assets Net Debt / Equity Weighted Average Interest Cost
(%) (%) (%)
30.6%
28.6% 59.8% 62.3%
5.0%
23.2% 46.8% 4.6% 4.6%
30 Jun 2020 31 Dec 2020 30 Jun 2021 30 Jun 2020 31 Dec 2020 30 Jun 2021 30 Jun 2020 31 Dec 2020 30 Jun 2021
Weighted average interest cost was 4.6% as at 30 June 2021
21Key Drivers Of Our Three Pillars Of Business
A B C
Investment Fund Management Development
– Completed B/S properties
– Base / Asset management fees – B/S development profits
➢ Rental income + revaluation gains
– Development fees ➢ Revaluation gains on U/C properties +
– Fund co-investments(1) disposal gain on sale
Income ➢ Pro rata earnings – Acquisition fees
– Funds’ development profits(1)
– Listed securities – Leasing fees
– Construction income
➢ Dividend income – Promote fees
– Solar energy income
– Direct costs for rental and solar energy income – Construction costs
Expenses – Allocated administrative expenses
– Allocated administrative expense – Allocated administrative expenses
✓ Rental growth and high occupancy ✓ Strong Fund AUM growth ✓ Significant development pipeline (B/S, funds)
✓ Cap rate compression ✓ Significant development pipeline in funds ✓ Track record of strong development profit
Key drivers margins
✓ High dividend payout from listed ✓ Promote Fee opportunity
securities ✓ Asset recycling from B/S or development
funds into core funds / REITs
1H 2021
Segmental US$183 million US$97 million US$135 million
Result2
% contribution % contribution % contribution
44.1% 23.4% 32.5%
Combined segmental EBITDA: US$415 million
D US$36 million corporate and other unallocated costs
Total Segmental Result: US$379 million
Notes:
(1) Based on allocated share of profits from FVTPL funds and JV funds to each of Investment and Development segments 22
(2) 1H 2020 Segmental result: Investment: 36.2%, Fund Management: 21.5%, Development: 42.3%Summary Of 1H 2021 Financial Performance
US$ million 1H 2020 1H 2021 Variance
Revenue 198 204 3.4%
Investment 59 54 (8.6%)
Fund Management 84 124 48.2%
Development 55 26 (51.6%)
Segmental Results (EBITDA) 300 415 38.6%
Investment 109 183 68.7%
Fund Management 64 97 50.9%
Development 127 135 6.7%
Corporate and other unallocated expenses (23) (36) 52.7%
Total EBITDA 269 373 38.6%
Adjusted Revenue (ex. construction income) 142 178 24.7%
PATMI 133 214 60.9%
Core PATMI (ex. revaluation from completed properties) 121 167 37.7%
▪ Revenue increased to US$204 million mainly due to higher fees from fund management segment,
offset by lower construction income from outstanding projects prior to exit of the CIP construction
business
▪ Increase in segmental results (EBITDA) boosted by an increase in fee income, as well as gains
realised through fair value of completed investment properties, share of profits from Korea JV
▪ Growth in Core PATMI continues to be supported by strong recurring income such as fees collected
from fund management
231H 2021 Financial Performance – Segmental
EBITDA Breakdown
37%
33%
42%
44%
1H 2020 1H 2021
US$300 mil US415mil
23%
21%
Investment Fund Management Development
24A Investment Segment
Healthy broad-based demand with strong occupancy maintained
Portfolio Lease Expiry Profile By Area1,2 Investment Segmental Result
Assets held on Balance Sheet Assets held in Funds & Investment Vehicles (US$ million)
36%
35% 183
14% 15%
12%
11% 12%
11% 10% 10% 109
8%
8%
3% 2% 4% 3% 2% 1%
2H 2021 2022 2023 2024 2025 2026 and
beyond
As at 30 Jun 2021 Assets held
Assets held
on Balance Portfolio
in Funds
Sheet
WALE (by leased area) 1.9 years 4.1 years 3.8 years
WALE (by income) 2.2 years 4.0 years 3.8 years 1H 2020 1H 2021
▪ Investment segment results rose 68.7%, boosted by fair value gains on completed investment
properties and share of profits from South Korea joint ventures
▪ Well-spread WALE of 3.8 years2 by leased area and 3.8 years2 by income
▪ High occupancy of 89%3 across portfolio with the addition of newly completed properties in
1H 2021
▪ Achieved positive rental reversion of 5% on renewed leases 3
Notes:
(1) As at 30 June 2021
(2) Based on assets on balance sheet and portfolio assets held in the funds and investment vehicles
25
(3) Based on assets on balance sheet and stabilised assetsA Investment Segment
Robust leasing supported by new economy and deep customer relationships
Portfolio Top 10 Tenants By Income1,2 Portfolio End User By Industry
(%) Others
11%
JD.com 9.4%
Coupang 6.0% Retail
11%
SoftBank
4.8%
Group Corp
Lease
Zeny 3.1% Manufacturing Profile
9% by Income1
Amazon 3.1%
Cold Chain
Market Kurly 2.6% 5%
Nitori 2.3%
8 out
Nakano Shokai 2.2%
of 10 64%
The State Top 10 Tenants E-commerce and
1.6%
of Queensland are e-commerce 3PL companies
related1
Alibaba 1.3%
E-commerce related
▪ Strong leasing transactions across portfolio with 1.6 million sqm of space2 leased across
portfolio
▪ Robust leasing demand largely driven by e-commerce and 3PLs
Notes:
(1) Based on income for 1H 2021 26
(2) Based on assets on balance sheet and portfolio assets held in the funds and investment vehiclesB Fund Management Segment
Fund AUM rose 37.9% y-o-y to US$32.7 billion
Evolution in Total Assets Under Management (Dec 2019 to Jun 2021)
(US$ billion)
36.3
18.5
29.9
26.5 17.3
16.9
22.1
12.4
14.1
9.8
6.8 6.8
2.9 2.8 2.8 3.6
31 Dec 2019 30 Jun 2020 31 Dec 2020 30 Jun 2021
Balance Sheet Core Funds Development Funds
Fund AUM
Accelerating growth of fund management business demonstrates strong investor confidence
27B Fund Management Segment
Strong fundraising support with US$2.5b of new committed capital
Fund Income Fund Management Segmental Result
(US$ million) (US$ million)
124
97
84
64
1H 2020 1H 2021 1H 2020 1H 2021
Fund Income 1H 2020 1H 2021 Capital Raised (US$ billion) 1H 2020 1H 2021
% of adjusted Total AUM1 1.0% 0.9% Equity committed 9.0 12.3
% of adjusted Fund AUM1 1.2% 1.0% Undrawn capital 3.6 4.4
% of invested capital 3.5% 2.9% Capital raised 2.4 2.5
Increased development WIP adds greater visibility and a stronger base for
fund management fee income
Notes: 28
(1) Excludes uncalled capital.B ESR’s Capital Raising By Market
Continuous platform expansion underpinned by strong fundraising
Japan
AUM (US$ billion)
9.2 New funds raised
in 1H 2021
7.9
US$2.5b
New capital committed
in 1H 2021
Dec 20 Jun 21
South Korea
US$4.4b AUM (US$ billion)
9.4 New fund raised
in 1H 2021
Uncalled capital 7.7
to be deployed
Strong Network of
Blue Chip Institutional
Dec 20 Jun 21
Capital Providers India
AUM (US$ billion)
China
CPPIB APG AUM (US$ billion)
7.4
6.7
1.2 1.1
Ping An CPIC
NCI GIC Dec 20 Jun 21
Australia Dec 20 Jun 21
AXA Manulife AUM (US$ billion) New fund raised Singapore (2 Listed REITs)
in 1H 2021
6.1 AUM (US$ billion)
PGGM Allianz
3.4 3.0 3.0
Dec 20 Jun 21 Dec 20 Jun 21 29
*AUM details as of 30 June 2021B Investment Vehicles Under Management
Continue to attract best-in-class capital partners across multiple-fund
investments Inception Date Category
Fund AUM
Capital
Commitments
Uncalled Capital Interest Held GFA 1
By ESR (%)
(US$ million) (US$ million) (US$ million) ('000 sqm)
e-Shang Star Cayman Limited May-14 Development 2,019 863 87 25.6 2,326
RCLF I Jul 12 Development 812 440 - 2.3 1,009
China
China Invesco Core Fund Oct 17 Core 359 190 - 16.3 371
NCI Core Fund Jan-19 Core 307 159 - 10.0 325
GIC Dec-19 Development 927 538 313 51.0 1,038
Manulife Mar-20 Core 281 292 6 1.5 270
South Korea
South Korea Development Fund I Nov-15 Development 3,159 1,150 245 20.0 2,007
South Korea Core Fund Jul-18 Core/Core Plus 2,320 1,000 586 10.0 491
South Korea Development Fund JV 2 Jun-20 Development 2,359 1,000 899 20.0 307
AMC Projects - Core 379 - - NA 197
ESR Kendall Square REIT Dec-20 REIT 1,222 NA NA 9.9 684
RJLF II Apr-18 Development 1,333 575 67 0.0 443
Japan
ESR Japan Core Fund Dec-18 Core 1,352 511 - 17.0 605
RJLF III Jun-19 Development 2,928 1,353 836 20.0 745
Other investment vehicles Various Development 2,769 1,184 346 Various 1,042
Singapore
ESR-REIT 2006 REIT 2,405 NA NA 9.3 1,449
Sabana REIT 2010 REIT 642 NA NA 20.9 390
50 Ann PEP May-17 Core Plus 141 67 - 25.0 26
POP III Feb-19 Core Plus 100 45 - 11.2 20
PACT Dec-17 Value Add 262 59 - 15.0 19
Australia
EALT Nov-19 Core Plus 145 73 - 20.0 94
EOP IV Dec-19 Core Plus 114 49 - 11.2 22
EALP Jun-20 Core Plus 1,057 455 53 10.0 629
EADP Aug-20 Development 1,692 758 657 40.0 363
EMP Jun-21 Core Plus 2,519 997 - 20.0 1,706
India
ESR India Logistics Fund Nov-18 Development 401 239 63 50.0 795
ESR Mumbai 3 Dec-20 Development 668 300 283 100.0 189
TOTAL OF ALL FUNDS 32,672 12,297 4,443 17,562
Notes:
(1) The commitment represents the aggregate capital commitments to the fund or investment vehicle, as applicable, including capital commitments by third-party investors and the general partner or investment manager. Foreign
currency commitments have been converted into U.S. dollars based on: (i) the foreign exchange rate at the date of purchase for each investment; and (ii) the exchange rate that prevailed on 30 June 2021, in the case of uncalled
commitments. 30C Development Segment
Record WIP boosted by robust customer led demand for higher value
projects
Work In Progress Work In Progress (Estimated Total Cost)
1H 2020 1H 2021
(US$ billion)
Estimated Total Cost (US$ billion)
WIP End Value as at December 3.9 4.7
41 47
Development Completions 1.3 0.7
Development Starts 1.1 1.2
5.5
FX and other (0.2) 0.3
WIP End Value as at June 2021 3.5 5.5
No. of WIP developments (as at period end) 41 47
3.5
1H 2020 1H 2021
No. of WIP developments Project rendering of the 195,373 sqm ESR Yokohama Sachiura DC2,
a four-storey building with double ramp ways
▪ Strong growth in WIP to a record US$5.5 billion in 1H 2021 boosted by strong demand
and expansion from e-commerce related customers
▪ Robust demand for high quality, large-scale, modern logistics facilities
31C Development Segment
Continue to leverage third party capital for development starts
Development Starts Development Completions
Estimated Total Cost (US$ billion) Completion Fair Value (US$ billion)
2.2
2.1
1.2
0.9
The six-storey ESR Chigasaki DC in Japan was
0.8 0.9 completed in 1H 2021
0.7 0.8
0.3
0.04 0.05 0.1
1H 2020 1H 2021 1H 2020 1H 2021
Assets held on Balance Sheet Assets held in Funds & Investment Vehicles
Development Starts 1H 2021 1H 2020 Development 1H 2021 1H 2020
(%) Completions (%)
Assets held on 41% 12% Assets held on Balance 37% 5%
Balance Sheet Sheet
Assets held in Funds & 59% 88% Assets held in Funds & 63% 95%
The four-storey ESR Kawasaki Yako DC in Japan
Investment Vehicles Investment Vehicles was completed in 1H 2021
32C Development Segment
Strong landbank for sustainable and recurring development profits
Development
Land Bank Development Pipeline Segmental Result
GFA (million sqm) GFA (million sqm) (US$ million)
US$3.9 bil US$2.9 bil
16.1
3.8 135
1.9
2.3
127
1.2
2.9
3.0
1.7
7.6
4.0
0.7
0.6 5.5
1.5
1.5 0.9
0.2
0.7 2.9
1.2 2.3
6.0 1.3 0.3
0.4
0.8
2.6 2.4 0.4
1.0
1
1H 2020 1H 2021 Development MOU Under Land
Pipeline Development
Land held in Fund & Investment Vehicles China Japan South Korea Australia India/Others
Land held on Balance Sheet
Estimated Total Cost GFA (million sqm) 1H 2020 1H 2021
GFA (million sqm) 1H 2020 1H 2021 MOU1 47% 46% 1H 2020 1H 2021
Land held on Balance Sheet 41% 41% Under Development 28% 31%
Land held in Funds & 59% 59%
Investment Vehicles Land 25% 22%
Note:
(1) MOUs as of June 2021 33Summary Of 1H 2021 Balance Sheet
US$ million 30 Jun 20 31 Dec 20 30 Jun 21
Total Assets 6,662 7,687 8,550
Cash 947 1,515 1,133
Total debt and other borrowings 2,855 3,295 3,753
Net Debt 1,908 1,780 2,620
Net Debt / Total Assets 28.6% 23.2% 30.6%
▪ Robust cash position of US$1.1 billion as at June 2021, an increase of 19.6% y-o-y
▪ Total debt and borrowings were higher in 1H 2021 to fund the Group’ investments and
ongoing developments
▪ Healthy gearing of 30.6% which is expected to ease following the completion of
the ARA acquisition (90% equity financed)
34Disciplined Capital Management
Well-managed debt maturity profile
Debt Maturity Profile Debt Currency Profile
(US$ million) As at 30 June 2021
AUD HKD
1,393 1% 3%
1,676
37%
45% SGD
14%
USD
47%
JPY
495 20%
13%
189
5%
Within one year In the second year In the third to fifth Beyond five years RMB
year, inclusive 15%
▪ Well-managed debt maturity profile of 4 years with refinancing plans within one year in place
▪ Fully exited CNI investment with A$272 million of total proceeds; investment generated a
23.0% unleveraged IRR1
▪ Continue to diversify its funding and capital structure, and maintaining interest cost
management with weighted interest cost of 4.6% as at 30 June 2021 (Dec 2020: 4.6%)
- Mar 2021: Issued S$200 million perpetual resettable step-up subordinated securities at 5.65%
- Apr 2021: Entered into a new US$400 million unsecured term loan facility consisting of a 3-year
US$267 million tranche at Libor +2.75% and a 5-year US$133 million tranche at Libor +3.25%
- Jun 2021: Further issuance of S$150 million perpetual resettable step-up subordinated securities
Note: 35
(1) Includes dividendsSection 4 Outlook
122 Newton Road, Wetherill Park,
New South Wales, AustraliaGoing Forward
Creating APAC’s largest real asset manager powered by New Economy
Australia
POWERED
POWERED BY
BY
Southeast Greater South US / NEW
Asia Japan & New India NEWECONOMY
ECONOMY
China Korea Europe
Zealand
✓ ✓ ✓ ✓ ✓ ✓
New Economy
Sectors
Logistics
✓ ✓ ✓ ✓ ✓ ✓ US$53 billion of AUM
Data Centers & >80%
EBITDA
REIT
✓ ✓ ✓ ✓ ✓ ✓ Of Enlarged Group
Public REITs
10
✓ ✓ ✓ ✓ ✓ countries in APAC
representing over 95% of GDP
Traditional RE
Funds
>30 mil sqm
✓ ✓ ✓ Portfolio GFA
Infrastructure /
Renewables /
Others >US$10 billion
Development WIP
of Enlarged Group(1)
Total AUM US$7.7 billion
US$131 billion Uncalled capital
Note: 37
(1) Includes LOGOS’ acquisition of Moorebank Logistics Park announced on 5 JulySection 5 Next Stage
Of Growth:
Proposed Acquisition of ARA
2 Jalan Kilang Barat, SingaporeNext Stage Of Growth
Next Steps – Proposed acquisition of ARA
▪ ESR has entered into the Acquisition Agreement pursuant to which ESR will acquire 100% of the
share capital of ARA for US$5.2 billion
▪ The Proposed Transaction is subject to ESR’s shareholders’ approval at an extraordinary
general meeting which will be convened around October 2021
▪ An Independent Financial Advisor (“IFA”) will be appointed to advise ESR’s independent
directors and the Shareholders on the terms of the Proposed Transaction. The letter of advice of
the IFA as well as a letter from the Independent Board Committee will be included in the
shareholder’s circular which is expected to be dispatched to ESR shareholders on or before 30
September 2021
▪ Planning for post-deal integration has commenced with focus on alignment in growth strategy,
culture and operations. An Integration Committee, consisting of senior management of ESR and
ARA, will be formed
39A Landmark Transaction
Largest US$36Bn Largest US$95Bn
APAC-Focused (2)
AUM(2)(3)
AUM(1) Real Assets AUM
Logistics Real Manager in APAC with • US$65Bn: Public REITs,
Significant Exposure private funds and subsidiaries
Estate Platform • US$30Bn: Associates(3)
to New Economy
37% / 42% 3 11(5) 58% / 30%
Perpetual + Listed REITs Listed REITs Perpetual +
Core Capital(4) / AUM Core Capital(2) / AUM
Growth(6) Growth(6)
59 New Capital Partner Relationships; 9 of Top 20 Global LPs(7)
US$131Bn US$53Bn
#1
APAC Real Asset Fund
>80% >50%
Manager Powered by EBITDA from New Perpetual + Core
AUM(1)(2), ~2x the New Economy AUM; New Economy Economy Real Capital with 14
Closest Peer #1 in APAC
Estate(8) Listed REITs
Source: Company Information, JLL Independent Market Research, data for peers as of 31 December 2020, or if unavailable, as of latest publicly available figures
Notes: (4) Based on reported AUM as of 31 December 2020 adjusted for announced additions in 1H21
(1) Reported AUM of US$29.9Bn for ESR as of 31 December 2020 adjusted for AUM announced in 1H21 (Milestone (5) 5 directly managed REITs, 6 by associates
Portfolio US$2.8Bn, RJLF 3 US$675MM, Korea Income JV US$500MM) (6) 2016-2020A CAGR
(2) Assets under management by ARA Group and its Associates as at 30 June 2021, adjusted for LOGOS’ acquisition of (7) Ranked by real estate allocation since 2011 (JLL Independent Market Research, Preqin)
Moorebank Logistics Park announced on 5 July 2021; data for peers as of 31 December 2020, or if unavailable, as of (8) Based on 2020A segment EBITDA, before unallocated corporate costs 40
latest publicly available figures
(3) Associates include Cromwell (“CMW”) and Kenedix (“KDX”)1 Leading Real Asset Manager in APAC and One of the Largest Globally
The Enlarged ESR Group Will Be The Largest Real Asset Manager in APAC with US$131Bn of AUM and the 3 rd
Largest Listed Real Estate Investment Managers Globally
Largest Real Asset Manager in APAC, Over 2x the Next Largest Propels the Enlarged ESR Group to be One of the Top 10 Real
Manager Estate Investment Managers Globally
AUM (US$Bn)(1)(2) Real Estate AUM (US$Bn)(3)
The Enlarged ESR Group to be the 3rd
131.7 largest listed real estate manager
3.7
128.0 The Enlarged 255.7
ESR Group
is More than
2x the Next 118.5 (1H21)(4)
95.4 Largest
Manager
163.6
140.7 140.7
130.7 125.0
59.1 56.4 36.3
36.3 102.9 100.7 100.0
82.2
37.3 36.5 35.7
32.6 33.5 30.8 30.7
Capitaland
Frasers
Goodman
GLP
Mitsubishi Estate
Mapletree
Charterhall
AXA IM - Real Assets
PGIM Real Estate
MetLife IM
Nuveen
UBS AM
Blackstone
Hines
Brookfield
CBRE Global Investors
Mitsui Fudosan
(1)
(1)
Balance Sheet AUM ARA AUM(1) ESR AUM(1) Listed
Source: Company Filings, IPE Real Assets, JLL Independent Market Research
Notes: available figures; excludes balance sheet AUM
(1) As of 31 December 2020 for ESR 2020 adjusted for AUM announced in 1H21 (Milestone Portfolio (2) ESR and ARA data based on company information; peer data based on JLL Independent Market Research
US$2.8Bn, RJLF 3 US$675MM, Korea Income JV US$500MM); assets under management by ARA Group (3) Real estate AUM only; Peer data as of 30 June 2020 based on IPE Top 150 Real Estate Investment
and its Associates as at 30 June 2021, adjusted for LOGOS’ acquisition of Moorebank Logistics Park Managers 2020; ESR and ARA data based on company information
announced on 5 July 2021; as of 31 December 2020 for peers data, or if unavailable, as of latest publicly (4) Real estate AUM only. Excludes credit AUM 41Double Down on New Economy Real Estate with the Leading Platform in
APAC
ESR(1) LOGOS(2) Enlarged ESR Group
# of Countries 7 9 10
AUM 52.9
36.3(3) 16.6
(US$Bn) ( 45.7%)
Portfolio GFA 31.5
22.6 8.9
(MM sqm) ( 39.4%)
2020A Development Starts 4.3
3.2 1.1
(US$Bn) ( 34.4%)
1H 2021 Development Work In 10.2
5.5(1) 4.7(1,2)
Progress (WIP) (US$Bn) ( 85.5%)
Capital Raised in the Past 24 Months 8.6
4.8(4) 3.8(5)
(US$Bn) ( 79.2%)
Uncalled Capital 7.7
4.4(1) 3.3
(US$Bn) ( 75.0%)
Source: Company Filings
Notes:
(1) As of 30 June 2021 (3) Reported AUM of US$36.3Bn for ESR as of 30 June 2021
(2) As of 30 June 2021, inclusive of ARA LOGOS Logistics Trust as of 30 June 2021, adjusted for LOGOS’ (4) Includes capital raised in FY2019 and FY2020
acquisition of Moorebank Logistics Park announced on 5 July 2021 (5) Last 2 years to June 2021 42Double Down on New Economy Real Estate with the Leading Platform in
APAC (Cont’d)
Major Player with Meaningful Presence in All APAC Regions and Leadership Positions Across Key Markets
ESR + LOGOS GLP Goodman Prologis
AUM(1) Pipeline(2) WIP AUM(3) Pipeline(2) WIP AUM(3) Pipeline(2) WIP AUM(3) Pipeline(2) WIP
(US$Bn) (MM sqm) (US$Bn) (US$Bn) (MM sqm) (US$Bn) (US$Bn) (MM sqm) (US$Bn) (US$Bn) (MM sqm) (US$Bn)
#1 dev 15.0 16.4
pipeline Australia 0.7 - - 0.3 - -
and NZ (2 Countries) (2 Countries)
#2 by
AUM & China 10.7 2.5 32.7 3.0 4.0 1.4 2.5 1.1
pipeline
#1 dev
Japan 9.2 2.6(4) 16.2 2.2(4) 3.0 0.2 8.5 1.1
pipeline
#1 by
AUM Korea 9.4 1.2 - - - - - -
#1 by -
7.0 0.1
AUM SEA 1.2 (1 0.2 - - -
(4 Countries) (1 Country)
Country)
#1 by
AUM India 1.6 1.0 1.0 0.5 - - - -
#1 by
AUM, pipeline Total 52.9 9.2 10.2 49.9 5.9 3.1 23.4(5) 1.9 5.8 11.1 2.2 1.9
& WIP
Source: Company Filings, JLL Independent Market Research
Notes: (3) Peer AUM data based on company filings (GLP and Prologis: as of 31 December 2020; Goodman as of 31 March 2021)
(1) ESR data as of 30 June 2021; LOGOS data as of 30 June 2021, inclusive of ARA LOGOS Logistics Trust, (4) ESR and GLP pipeline in Japan for 2021-2027 based on ESR data
adjusted for LOGOS’ acquisition of Moorebank Logistics Park announced on 5 July 2021 (5) Goodman Group APAC AUM of US$30.6Bn including Hong Kong
(2) 2021-23 pipeline as of 1Q21; ESR and LOGOS data based on company information. Peer data as per JLL
Independent Market Research Estimates
43Double Down on New Economy Real Estate with the Leading Platform
in APAC (Cont’d)
Accelerate Rollout of Data Center Strategy with More Expansive Offerings
Selected Data Centers Over 1,200MW of Pipeline Across Combined Platform LOGOS: Korea
ESR Japan Data Center
>150
>100 Japan
Artist Impression Only, Subject to Final Changes
Greater China
Facility Load: 78MW South
Korea
ESR Hong Kong Data Center >250
India
>300
Malaysia
>100
Artist Impression Only, Subject to Final Changes
Singapore >160
Facility Load: 40MW
>100 Indonesia
LOGOS Jakarta Data Center
Australia
>40
Total MW
Artist Impression Only, Subject to Final Changes Partnership with World Class Operators and M&E Providers
Facility Load: 20MW
44Financial Impact and Synergies
The Transaction Will Create Robust Earnings Growth
EBITDA Adj. EBITDA(1)
US$MM US$MM
35% 772 55%
567
571
366
2020A Total for Enlarged ESR Group(2) 2020A Total for Enlarged ESR Group(2)
Potential Synergies
Revenue Cost Cost of Capital Capital Partners
• Increased size and scale • Reduce back-office • Significant cost of capital • Substantially expanded
• Significant revenue infrastructure costs advantages with investor base
increased platform size • Ability to capture more
synergies across New • Streamline overlapping
Economy offerings and scale wallet share of some of
country platforms
• Wider geographical • Ability to leverage ARA’s the largest global capital
• Leverage ARA’s deep asset deep capital market partners
coverage of APAC
management capability relationships • Cover >40% of the top 20
• More cost effective • More diversified lender global real estate
procurement system with and borrowing investors by AUM
the enlarged platform relationships
Notes:
(1) EBITDA excluding revaluation gains on properties under construction and completed investment properties 45
(2) Calculated based on 2020A ESR and ARA financial informationFully Integrated Closed Loop Solutions Ecosystem for Capital Partners
Allows Leading Global Investors to Rebalance Their Portfolios by Divesting Prime Commercial Assets to Redeploy
Back into New Economy Real Estate Where They Are Meaningfully Under-allocated
Private Market Real Estate Investors
Pension Funds SWFs Insurance
Growing
High Quality Exposure
Prime Assets Across New
Economy and
Other
Alternative
MINIMAL SIGNIFICANT Asset
Retail Office Classes
capital co-invest capital co-invest
Divesting Investing
Public REITs New Economy Real Estate
ESR is well-positioned to benefit from a fully integrated closed loop solutions ecosystem to help global capital partners divest Grade A
real estate with the benefit to re-deploy the capital back into new economy real estate via ESR and LOGOS
Source: Company Filings. FX rate:1 US$ = 6.5 RMB
Notes:
(1) Includes AUM of listed REITs under management, listed REITs owned by Kenedix and Cromwell Property Group
(2) Includes unlisted private funds of ARA, as well as balance sheet AUM of ESR 46Thank You
For enquiries, please contact Ms. Chang Rui Hua,
Group MD, Capital Markets & Investor Relations
DID: +852 55067719
Email: rh.chang@esr.com
ESR Ichikawa Distribution Centre, Japan www.esr.comSection 5 Appendix
ESR Chakan 1 Industrial & Logistics
Park, IndiaStatements Of Profit Or Loss
Interim period ended 30 June
US$ million 2020 2021
Revenue 198 204
Cost of sales (61) (30)
Gross profit 137 174
Other income and gains, net 169 212
Administrative expenses (86) (96)
Finance costs (72) (80)
Share of profits and losses of joint ventures and associates, net 44 78
Profit before tax 192 288
Income tax expense (47) (58)
Profit for the year 145 230
Attributable to:
Owners of the parent 133 214
Non-controlling interests 12 16
145 230
49Statements Of Financial Position
As at
US$ million 31 Dec 2020 30 Jun 2021
Non-current assets
Property, plant and equipment 32 33
Right-of-use assets 12 12
Investments in joint ventures and associates 1,082 1,272
Financial assets at fair value through profit or loss 679 662
Financial assets at fair value through other comprehensive income 878 718
Investment properties 2,664 3,598
Goodwill and other intangibles 427 780
Other non-current assets 87 98
Total non-current assets 5,861 7,173
Current assets
Trade receivables 95 125
Prepayments, other receivables and other assets 209 119
Cash and bank balances 1,515 1,133
Assets held for sale 7 -
Total current assets 1,826 1,377
Current liabilities
Bank and other borrowings 734 1,393
Lease liabilities 7 6
Trade payables, accruals and other payables 244 221
Liabilities held for sale -
Total current liabilities 985 1,620
Net current assets / (liabilities) 841 (243)
Total assets less current liabilities 6,702 6,930
50Statements Of Financial Position (Cont’d)
As at
US$ million 31 Dec 2020 30 Jun 2021
Non-current liabilities
Deferred tax liabilities 281 314
Bank and other borrowings 2,562 2,360
Lease liabilities 7 6
Other non-current liabilities 47 46
Total non-current liabilities 2,897 2,726
Net assets 3,805 4,204
Equity
Equity attributable to owners of the Company
Issued capital 3 3
Perpetual capital securities - 260
Equity components of convertible bonds 48 48
Other reserves 3,545 3,697
Non-controlling interests 209 196
Total equity 3,805 4,204
51Adjusted EBITDA & Core PATMI
Interim period ended 30 June
US$ million 2020 2021
Profit before tax 192 288
Add:
Depreciation and amortisation 7 8
Exchange loss/(gain) (0.7) 2
Finance costs 72 80
Equity settled share option expense 8 5
Less:
Interest income (2) (2)
Fair value gains on investment properties (126) (166)
Adjusted EBITDA 151 215
Interim period ended 30 June
US$ million 2020 2021
Profit after tax and minority interests 133 214
Less:
Fair value gains on completed investment properties (26) (63)
Add back:
Tax effect of adjustments 6 11
Equity-settled share option expenses 8 5
Core PATMI 121 167
52Segmental Result
Six months ended 30 June 2021
Fund
US$ million
Investment Management Development Total
Segment Revenue 54 124 26 204
Revenue from continuing operation 54 124 26 204
Operating expenses (9) (27) (40) (76)
Fair value gains on investment properties 63 - 103 166
Changes in carrying value of financial
assets and liabilities at fair value (14) - 6 (8)
through profit or loss
Share of profits and losses of joint ventures and
associates, net 43 - 35 78
Gain on sale of interests in a joint venture and an
associate 3 - 2 5
Gain on disposal of asset held for sale - - 3 3
Dividend income 43 - - 43
Segment Result 183 97 135 415
53Segmental Result (Cont’d)
Six months ended 30 June 2020
Fund
US$ million
Investment Management Development Total
Segment Revenue 59 84 55 198
Revenue from continuing operation 59 84 55 198
Operating expenses (20) (20) (68) (108)
Fair value gains on investment properties 26 - 100 126
Changes in carrying value of financial assets and
(10) - 1
liabilities at fair value through profit or loss 11
Share of profits and losses of joint ventures and
associates, net 18 - 26 44
Gain on disposal of subsidiaries - - 5 5
Dilution of interests in investment in a joint
venture - - (2) (2)
Dividend income 36 - - 36
Segment Result 109 64 127 300
54ESG Framework
Human Centric Property Portfolio Corporate Performance
• Engaging with our stakeholders • Sustainable and efficient solutions • Corporate governance and risk
• People are our greatest assets • Sustainable building standards management
• Responding to climate change • Corporate policies
• Seeding positive change in our
communities • Striving for continuous improvement • Focus on third-party compliance
• Designed with occupants in mind • Responsible investment
• Disclosure and reporting
Basic human needs are universal. We aspire to develop and manage Strong corporate performance is the
Meeting those needs today while logistics facilities for the new economy foundation upon which we will achieve
ensuring they can continue to be met in by offering tenants modern, state-of- sustained and balanced growth giving
the future, is the cornerstone of the- art, focused and integrated real rise to stable returns over the
sustainable development. estate platforms. long-term.
Focus Areas: Focus Areas: Focus Areas:
• Safety, Health & Well-being • Sustainable & Efficient Operations • Financial Performance
• Diversity & Inclusion • Sustainable Building Certifications • Investor Relations
• Community Investment • Climate Change Resilience • Responsible Investing & Finance
• Managing & Developing Talent • Biodiversity and Habitat Protection • Corporate Governance
• Stakeholder Engagement • Flexible & Adaptable Properties • Risk Management
• Strategic Locations • Disclosure & Reporting
ESR’s vision for sustainable development and ESG Framework
aligns with the United Nations 2030 Agenda. We’ve identified six
United Nations goals which we feel we can make the most
meaningful contribution.
55Building For The New Economy
2020 ESG Highlights
Human Centric Property Portfolio Corporate Performance 2020 Sustainable Building
Certifications
20% 35MW New corporate policies formally
Hire rate Installed rooftop solar endorsed by the Board:
power capacity • ESR Group ESG Policy
36% • ESR Group Supplier Code of
58 Conduct
Female participation rate
• ESR Conflict of Interest Policy
Certified sustainable buildings
+10.9 in our portfolio
ESR ComplianceDesktop®
Net promotor score Automated Third Party Due
(indicates our people are happy 70% Diligence Workflow has been
here at ESR) of GFA completed in 2020 fully implemented across
has/in process of certification all markets
On track to achieve our ESG targets set out in Five-Year Roadmap
Disclosure & Reporting MSCI ESG RATING – “A”
Global Real Estate Sustainability Benchmark (GRESB) MSCI ESG Ratings – “A” Rating
ESR was named “Sector Leader” in Asia for our outstanding ESR received an inaugural “A” rating, which places ESR
performance. Four ESR funds in Japan and South Korea among the top 20% of companies in the real estate
stand out in particular by earning four out of five Green Stars. development and diversified activities industry for ESG
performance.
For more information, please refer to our ESG Report 2020 on our website. 56Five-Year ESG Targets
Pursuit towards excellence in sustainability set out in five-year ESG Roadmap
5-YEAR ESG TARGETS
Human Centric Property Portfolio Corporate Performance
Safe working environment targeting 50% increase in solar power generation Achieve a 3 Star GRESB rating average
Zero Workplace Fatalities (from base year 2019)
Maintain a culture of strong corporate
Sustainable building certification for 50% of performance
Gender ratio of 40/60 women/men ESR’s portfolio
(from base year 2019) US$15 million in Social Investment
20% reduction in energy consumption Programme to our local community
Development of community across the Group (from base year 2019) foundation by 2030
engagement/foundation programme
Plan and Adapt for Change
Conduct regular ESG risk assessments in building safety,
energy efficiency, indoor environmental quality and waste
Develop and Embed Systems and water management.
and Processes for the Long-term
Integrate ESG considerations into all stages of the business cycle In Australia, we use a climate risk model to inform our buy
which include establishing data management systems, streamlining or sell decisions and for the rest of the region, we are
ESG data collection processes and developing policies while setting embarking on a climate impact study to shape the
annual performance targets and reviews. Group’s approach to climate adaptation.
Foster A Culture of
Consistent Reporting with Transparency Active Learning
Plan to progress in our reporting each year, with honesty and Encourage employees to progress on
transparency. We will look to produce a GRI adopted ESG continuous learning with annual ESG
report by 2022, improve our GRESB score and participate at a training for all employees.
corporate level and become a signatory of the Principles of
Responsible Investment (PRI) by 2024. This will pave the way for streamlined
systems and efficient processes, creating a
Increase Engagement with more resilient workforce for the future
the people that Matter Most
Implement engagement programmes to promote health & well-
being to provide all our stakeholders with a positive and
supportive environment.
We will measure our impact with the hopes of creating a culture
of community service and promote harmony with the community.
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