ESR Group Limited Annual Report 2022 29 seeded by eight development projects comprising 560 MW of development projects bought in and an additional 30 MW of immediate pipeline assets. In 2023, five data centre projects are slated for construction across the APAC region. This includes Keihanna OS4 data centre in Osaka, Bupyeong KR1 data centre in Seoul, Kwai Chung HK data centre, Rabale MU1 data centre, as well as the 25 MW Cosmosquare OS1 data centre in Osaka which started construction in 2022 and is slated for completion in 2026. INFRASTRUCTURE Another major milestone for the Group is the setup of our first US$1 billion Infrastructure Fund in November 2022, which is focussed on ASEAN. This marks an important step towards new investments into renewables and ICT subsectors, which leverage the Group’s own “on the ground” franchise in Southeast Asia as well as the Group’s push into alternatives including renewables. There are a few potential deals are in the pipeline, which include towers/fibre platforms in the Philippines, renewable energy portfolios in Vietnam and other infrastructure assets in Indonesia and Vietnam. Underpinning our robust scale, the Group has great depth in offering a comprehensive real asset investment solutions ecosystem, of which US$106 billion in invested in private investment vehicles and US$46 billion in Public REITs. With our growing and extensive reach across Asia Pacific, we are well-positioned to support our tenants in their regional expansion plans. KEY DRIVERS OF OUR GROUP’S THREE BUSINESS SEGMENTS Investment Fund Management New Economy Development Income – Completed B/S properties ➢ Rental income + revaluation gains – Fund co-investments(1) ➢ Pro rata earnings – Listed securities ➢ Dividend income – Solar energy income – Base / Asset management fees – Development fees – Acquisition fees – Leasing fees – Promote fees – Performance fees – B/S development profits ➢ Revaluation gains on U/C properties + disposal gain on sale – Funds' development profits(1) Expenses – Direct costs for rental and solar energy income – Allocated administrative expense – Allocated administrative expenses – Construction costs – Allocated administrative expenses Key drivers ✔ Rental growth and high occupancy ✔ Asset valuations ✔ High dividend payout from listed securities ✔ Strong Fund AUM growth ✔ Significant development pipeline in funds ✔ Favorable investment returns and performance fee opportunity ✔ Significant development pipeline (B/S, funds) ✔ Track record of strong development profit margins ✔ Asset recycling from B/S or development funds into core funds / REITs Total AUM Composition AUM by Region Greater China Japan South Korea APAC Southeast Asia Australia/New Zealand India/Others US/Europe 21% 22% 9% 17% 9% 7% 1% 14% AUM by Fund Type Perpetual + Core + REITs 60% Other Funds 38% Balance Sheet 2% AUM by Sector New Economy 62% Alternatives/Others 25% REITs 13% STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENT
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