ESR AR 2019 EN

Message from CEOs 2019 was a remarkable year as ESR delivered a strong financial performance for shareholders, healthy returns for our capital partners and best-in-class logistics facilities and solutions for our customers. The highlight of 2019 was the success of our IPO on the Main Board of SEHK. It was the culmination of a year in which we expanded the scale of our business to consolidate ESR’s position as the largest Asia Pacific focused logistics real estate platform. ESR’s financial results and IPO are a testament to our employees’ hard work and dedication, our management team’s insightful growth strategy, the well-earned confidence of our capital partners as well as the ongoing support of our customers and a range of other stakeholders. Our IPO, which raised US$1.8 billion, was an incredible vote of confidence in our unique Asia Pacific focused strategy, asset-light expansion model and e-commerce focused approach. The confidence shown by investors in our IPO meant a lot to us. It has opened the door to institutional and retail investors from around the world, while delivering a huge boost in public awareness of ESR’s competitive advantages and broadening opportunities with both capital partners and customers. The IPO enabled ESR to not only expand its shareholder base, but effectively lowered capital costs essential to maintain our long-term strategy of consistent growth and rapid expansion. At the same time, we are highly cognisant of the fact that success comes with new responsibilities. We are confident that ESR’s management team stands ready to fulfill these obligations in areas such as corporate governance, transparency and social and environmental efforts. Performance Highlights In 2019, ESR maintained robust growth momentum, rapidly expanding our platform reach and scale across Asia Pacific. Our AUM and GFA made impressive growth of 38.7% to US$22.1 billion, and 42.8% to 17.2 million sqm, respectively. From platform expansion to integration, capital raising to recycling, property development to tenant relationships and occupancy, our successful business model and growth strategy delivered on corporate targets in every one of our business areas. One of the highlights of our platform expansion included the acquisition of Australia’s Propertylink and its smooth integration into the ESR family, which marked a milestone in building out our Australia footprint to reinforce our position as the leading Asia Pacific platform. In Singapore, we increased our equity stake in Sabana REIT and AIMS APAC REIT. This was an important step that was key to enhancing our presence in the REIT sector and setting the foundation for the ASEAN regional market. Our capital recycling strategy of transferring assets into our new funds and investment vehicles continued to fuel growth across our platform. We partnered with New China Life Insurance to create our second core fund in China with a portfolio of seven assets valued at US$276.7 million. We also established two new mandates ESR Australia Logistics Trust (EALT) and ESR Office Partnership IV (EOP IV) with asset values of A$175 million (US$120 million) and A$138 million (US$94 million), respectively. 18 Focused Jinchu Shen and Stuart Gibson, Co-founders and Co-CEOs