ESR AR 2019 EN

Message from Chairman Dear Shareholders, We are delighted to present ESR’s Annual Report for FY2019, our first since the Group’s listing on the Main Board of the Stock Exchange of Hong Kong (“SEHK”) in November. Thanks to our dedicated management team, employees, customers, capital partners and other stakeholders, ESR enjoyed a banner year in 2019. Our commitment to deliver best-in-class 21st century logistics infrastructure has earned ESR the reputation as the leading logistics real estate platform in Asia Pacific. The unique scope of ESR’s fully integrated logistics real estate platform across China, Japan, South Korea, Singapore, Australia and India continued to support our customers to expand their business seamlessly throughout Asia Pacific while providing investment opportunities for our capital partners to take advantage of the region’s secular growth. Successful IPO 2019 was a transformational year for ESR. Among the many milestones we achieved, our highly successful Hong Kong IPO stands out as a tremendous vote of confidence by the investment community. We are proud that ESR’s US$1.8 billion IPO represented the third largest fundraising on SEHK in 2019 and Hong Kong’s largest real estate float in five years. We are grateful for our investors’ support as a part of the IPO, especially our cornerstone investor OMERS as well as other leading global investors who served as large anchor investors. Their confidence in ESR’s team, our Asia Pacific focused strategy and the strong growth prospects for the logistics real estate industry across the region was instrumental in delivering a highly successful IPO despite a highly volatile and difficult macro environment. While it is important to acknowledge the key milestone for the Group, we feel it is really just the beginning of a long and exciting journey ahead. The ESR team is ready for this new challenge and remains focused on delivering long- term value for our shareholders. Financial Performance ESR is well-positioned to capitalise on the strongest secular trends in Asia including the continued growth of e-commerce, the significant shift in capital flows to the region from the US and Europe and the superior risk/ reward proposition for logistics which is leading to higher capital values. Against this backdrop, the Group was able to deliver exceptional performance across all business segments in FY2019. In FY2019, ESR recorded strong revenue of US$357.4 million, representing 40.6% year-on-year growth. EBITDA reached US$549.1 million, up 42.9% from last year. Net profit* was US$245.2 million, up 20.8% from last year. We also maintained a strong balance sheet with US$884.2 million of cash and net debt/total assets ratio of 26.6%. * Profit after tax and minority interest (PATMI) Jeffrey David Perlman, Chairman 14 Focused