Operations Review FORWARD TOGETHER 32 FUND MANAGEMENT SEGMENT FY2022 KEY HIGHLIGHTS • Fund AUM increased 330% to US$152 billion1 • Record high US$19.9 billion of uncalled capital to be deployed • 60%2 of AUM from perpetual and core capital vehicles • Raised US$7.6 billion of capital in FY2022 Notes: 1. Stabilised New Economy assets only. Excludes listed REITs and Associates. 2. ESR Group AUM as 31 December 2022. Perpetual and core capital vehicles are defined as core funds and public REITs for ESR and public markets assets (including Cromwell and Kenedix REITs) and core funds for ARA. FUND MANAGEMENT SEGMENT We earn fee income from managing the underlying assets on behalf of our capital partners through the funds and investment vehicles we manage. Our fees include base management fees, asset management fees, acquisition fees, development fees and leasing fees. We also participate in a share of profits through promote after we have returned our investors’ initial capital investment and upon exceeding target internal rates of return. The funds and investment vehicles we manage vary in risk profiles from private opportunistic development strategies to private core/core-plus income producing strategies and publicly listed REITs. Our fund management platform offers a variety of products across the spectrum of geography, risk and liquidity to attract broad sections of the global investor universe, gives us the ability to manage the underlying assets across the development cycle and provides us with an efficient platform for recycling our own capital through the disposal of properties held on our balance sheet to the funds and other investment vehicles we manage or to third parties. We continuously enhance our portfolio and risk management processes to strive to meet our return objectives while mitigating risk at both the underlying asset and the fund level. ESR Group is the largest sponsor and manager of REITs in APAC with 13 listed REITs representing over a 10% market share. This additional fund management income from predominantly perpetual and core-capital vehicles enhances the Group’s resilience. We are committed to the long-term growth of all ESR-managed REITs and our sponsorship will include access to our strong portfolio of real estate properties as well as financial and operational support. The Group’s continued commitment and support will ensure the REITs are well positioned to capture the largest secular trends and deliver long-term sustainable growth and expansion. Fundraising momentum remains strong across the broader Group as we continue to deepen relationships with new and existing capital partners. For FY2022, ESR Group raised a substantial US$7.6 billion of capital through 28 Opo Logistics Park, South Korea
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