8 STRENGTH IN UNITY Positioning for Sustained Long-term Growth CLEAR PATH TO MAXIMISING SHAREHOLDER VALUE Business Simplification and Streamline • Simplify the business by disposing non-core assets and businesses (targeting US$750 million) principally those in Traditional Economy sectors and/or those with lower operating margins. • Re-focus on ESR's core business that spans logistics and data centres where ESR generates the highest returns, as well as new emerging areas of growth such as life sciences and infrastructure (particularly renewables). • Grow ESR's suite of New Economy fund platforms across the value chain in APAC comprising development funds, core/core-plus funds and listed REITs, to suit a diverse range of capital partners. Balance Sheet Optimisation • Ongoing capital recycling to syndicate balance sheet assets into ESR-managed vehicles, thereby strengthening the balance sheet and achieving an optimal capital structure. • Immediate focus on completing announced transactions in FY2023, including the launch of the C-REIT. • Earmarked a further US$1.52.0 billion of assets and investments located mainly in Mainland China, Hong Kong, Japan and India that are well positioned for divestment and syndication. • Target deployment of over US$2.0 billion in net proceeds to reduce the Group’s Gearing over the medium term towards the low end of targeted 20-30% level. Drive Positive Synergies From a Fully Integrated APAC New Economy Platform • Complete the full integration of two leading New Economy platforms ESR and LOGOS into one single unified business across APAC, managed by a best-in-class management team. • ESR Australia poised to be the second largest New Economy real estate manager with the largest development pipeline in that market. • Further growth opportunities in SEA, data centre and infrastructure platforms. • Further leverage economies of scale of the integrated businesses to generate additional revenue opportunities and achieve cost savings. 1 2 3 ESR Bringelly Road Business Hub, Sydney, Australia
RkJQdWJsaXNoZXIy MTIwODcxMw==