Message from Chairman FORWARD TOGETHER 18 On the back of strong secular trends, we will focus on three pillars of growth — New Economy, Alternatives (including infrastructure and renewables) and REITs. Dear Shareholders, 2022 represented one of the most challenging market environments since the global financial crisis with sustained inflation, record rate hikes and significant geopolitical and macro challenges. I am very pleased that even amidst these headwinds and market volatility, ESR has continued to deliver solid growth which is a strong testament to our business model. The Group’s Revenue for FY2022 was US$821 million, up 103.0% from FY2021 revenue of US$404 million. Total EBITDA1 increased by 63.0% from US$707 million in FY2021 to US$1.15 billion in FY2022. PATMI2 grew 73.5% from US$377 million in FY2021 to US$655 million in FY2022. The higher revenue was driven by higher fees from the Group’s Fund Management segment while EBITDA was boosted by an increase in fee income, share of profits of co-investments and gains on divestment from balance sheet assets to ESR-managed funds in Australia and China. A standout year for fund management I am proud to report that our Fund Management segment achieved another year of outstanding performance in FY2022, backed by our deep capital partner relationships. Fund Management Segmental EBITDA3 grew 185.3% to US$568 million, driven by substantial recurring and other fee revenue from higher AUM, record development, leasing fees and solid promotes. The segment was propelled by the exceptional growth momentum of the Group’s fund AUM4,5 which rose 330% year-on-year to US$152 billion, Notes: 1. Total EBITDA excludes amortisation of intangibles and transaction costs relating to ARA; and share of certain associates' fair value on investment properties, financial assets at fair value through profit or loss and financial instruments; as well as share-based compensation expense. Statutory Total EBITDA was US$1,069 million. 2. PATMI excludes amortisation of intangibles and transaction costs and share-based compensation expenses relating to ARA; share of certain associates' fair value of investment properties and financial assets at fair value through profit or loss and financial instruments. Statutory PATMI was US$574 million. 3. Excludes share of certain associates' fair value on investment properties and financial assets at fair value through profit or loss and financial instruments. JEFFREY DAVID PERLMAN Chairman
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