ESR AR 2019 EN

Operations Review Fund Management Segment We earn fee income from managing the underlying assets on behalf of our capital partners through the funds and investment vehicles we manage. Our fees include base management fees, asset management fees, acquisition fees, development fees and leasing fees. We also participate in a share of profits through promote upon exceeding a pre- determined target internal rate of return and after we have returned our investors’ initial capital investment. The funds and investment vehicles we manage vary in risk profiles from private opportunistic development strategies to private core/ core-plus income producing strategies and publicly listed REITs. Our management platform offers a variety of products across the spectrum of both risk and liquidity in order to attract broad sections of the global investor universe, gives us the ability to manage the underlying assets across the development cycle and provides us with an efficient platform for recycling our own capital through the disposal of properties held on our balance sheet to the funds and other investment vehicles we manage or to third parties. CASE STUDY Through our fund management platform, as at 31 December 2019, we manage 30 private third-party investment vehicles across Asia Pacific and two publicly listed REITs in Singapore. Our Fund AUM increased by 36.2% from US$14.1 billion as at 31 December 2018 to US$19.2 billion as at 31 December 2019, while the total equity commitment in the funds and investment vehicles we managed was US$6.5 billion, of which US$4.7 billion was invested, with a further US$1.8 billion of uncalled capital to be deployed. The largest capital raised during FY2019 was for the third vehicle which funds our development strategy in Japan, Redwood Japan Logistics Fund III (RJLF III), with JPY70 billion (US$686 million) of initial capital raised from two large institutional investors. The investors have the option to expand the commitment over time, bringing the total investment capacity of the fund to JPY530 billion. The fund targets to develop large scale logistics facilities in Tokyo, Osaka and Nagoya, building on the successful track record of RJLF I and RJLF II. The fund acquired a large parcel of land (part of Sachiura project) in Tokyo Bay together with other investors, aiming to develop a US$1 billion warehouse facility. Once completed, the project will be one of the largest master-planned logistics parks in Japan. Fund Fee Income (US$ million) 167 136 Growth: +23.0% FY2019 FY2018 Nanko Distribution Centre, Osaka, Japan 44 Focused