ESR AR 2019 EN

We have established efficient, high-quality and scalable capabilities for greenfield and brownfield developments in each country where we operate. Our extensive in-house expertise include selection and acquisition of sites to the design, construction and leasing of modern logistics facilities. These facilities are characterised by: • Optimal space utilisation: Large floor plates, high ceilings and wide column spacing. • High operating efficiency: Spacious loading and parking areas equipped with modern loading docks. • Storage safety: Security and surveillance features, proper ventilation and basic fire-fighting features such as sprinkler systems. • Flexibility to provide customised features: Office space, air-conditioning and refrigeration/ freezing. Operations Review Development Segment We capitalise these development projects through our funds and investment vehicles that we manage and/or through our balance sheet. We earn development fees from our partners when we use capital from Funds Management (attributed to the Funds Management segment), and we earn development profit upon sale of completed properties when we use our balance sheet. We also derive pro rata earnings and pro rata value appreciation through the development activities of the development funds and investment vehicles we manage in proportion to our co-investments in those funds and investment vehicles. All of our development related capital gains are attributed to our Development segment. FY2019 ‹ KEY HIGHLIGHTS › New development starts of US$2.0 billion Total gross divestment value of US$490.7 million of assets recycled from the balance sheet Development completions of US$1.9 billion Landbank of over 3 million sqm across portfolio 46 Focused