ESR AR 2019 EN

Key Developments Over the course of FY2019, ESR has further consolidated our scale and leading position in every one of our markets. In FY2019, our fund management business, the lifeblood of the business, grew its AUM by 38.7% to US$22.1 billion and GFA increased by 42.8% to 17.2 million sqm. Our platform expansion has been fuelled by the strong momentum for both organic growth and M&A activities. In Australia, ESR completed the acquisition of Propertylink in March. Propertylink is an internally managed REIT previously listed on the ASX that specialises in Australia’s industrial and office investments. The Propertylink acquisition both strengthened our local asset management capabilities and instantly scaled up our platform to make ESR a major player in Australia in a short period after entering the market. In Singapore, another strategically important market for ESR’s permanent capital vehicles as a key driver of long- term AUM, we further expanded our presence by acquiring 100% of the Sabana REIT manager as well as increasing ESR’s equity interest in Sabana REIT and AIMS APAC REIT. Our integrated fund management platform comprising 32 private and listed investment vehicles and spanning various stages of the property cycle and risk/reward spectrum positions ESR as a partner of choice for many of the world’s preeminent investors. Last year we were excited to collaborate with a growing number of new The IPO 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. “ “ capital partners to create new vehicles. At the same time, we continued to expand existing relationships with capital partners such as APG on multiple vehicles and geographies. In FY2019, ESR raised a total of US$1.3 billion across seven vehicles 1 . Our ability to acquire prime sites has proven to be a competitive advantage for ESR’s long-term success. In FY2019, we made significant investments in prime land sites across the region to satisfy the fast-growing demand for large e-commerce distribution centres and last-mile logistics. In Japan, for example, ESR secured a rare opportunity to acquire a prime parcel of land on Tokyo Bay to develop Japan’s largest master-planned logistics park, ESR Yokohama Sachiura Distribution Centre, in an investment valued at over US$1 billion in its first phase. Corporate Responsibility As we strengthen our commitment to delivering the 21st century logistics infrastructure that Asia Pacific needs to succeed in the new economy, ESR is aware that expansion is not our only goal. Our success will be equally determined by ESR’s ongoing efforts to become a better company, embracing the highest standards of corporate governance, working to be a responsible corporate citizen and improving the communities where we live and work. ESR is committed to leading on the sustainability front. We build environmentally friendly facilities, integrate sustainability elements into the operations of our facilities and create a human-centric environment for our tenants and our own employees. Today, more and more leading businesses view such facilities as an important factor contributing to their success, especially in more Note: 1 Excludes the joint venture with GIC which was signed in December 2019 and announced in January 2020. There was no drawdown for the fund as at 31 December 2019. 15 ESR Annual Report 2019 MESSAGE FROM CHAIRMAN