13 ESR Group Limited Interim Report 2024 Australia and New Zealand Japan South Korea Mainland China India SEA Occupancy11 (%) 98 86 96 77 97 93 Weighted average rental reversion rate11, 12 (%) 27.9 2.3 24.0 -11 N.A. N.A. Portfolio Leasing Metrics11 1H2023 1H2024 Renewals (mil sqm) 0.7 1.7 New Leases (mil sqm) 1.4 2.2 Total Space Leased 2.1 3.9 Portfolio Lease Expiry Profile11 8% 17% 18% 14% 12% 31% 2024 2025 2026 2027 2028 2029 and beyond (by area) Development activity had adapted to a cautious pace with US$1.3 billion and US$1.5 billion of starts and completions respectively in 1H2024. 34% of development starts were projects in data centres, and for regions, 26% were in Australia and New Zealand, 23% of projects were in India and Southeast Asia and 17% were from Mainland China. The Group remains prudent when evaluating any new development starts, or new land acquisitions currently in Mainland China. In the case of development completions, 71% were from Australia and New Zealand, India and Southeast Asia, followed by 18% from Mainland China. The rest were from South Korea. The 23.1 million sqm GFA development pipeline13 continues to be robust as the Group pursues its development strategy in support of AUM growth. As at 30 June 2024, ESR’s US$13.1 billion workbook comprised 27% in Australia and New Zealand, 24% in Japan and South Korea, 15% in India and Southeast Asia, 11% in Hong Kong, 9% in Mainland China, and data centres which increased to 14% of the total. More than 95% of the workbook is funded by ESR’s managed funds, in line with ESR’s stated asset light strategy. On the back of healthy demand for the Group’s projects and stabilisation in construction costs, targeted development margins improved to 33.5%, with projected yield on cost of 6.7%. Notes: 13. Includes land, under development and MOUs as at 30 June 2024 Development Starts 34% Data Centres 26% Australia & New Zealand 23% India & SEA 17% Mainland China US$1.3 billion Work in Progress 27% Australia & New Zealand 24% Japan & South Korea 15% India & SEA 14% Data Centres 11% Hong Kong 9% Mainland China US$13.1 billion Development Completions 44% Australia & New Zealand 27% India & SEA 18% Mainland China 11% South Korea US$1.5 billion
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