FINANCIAL REVIEW INVESTMENT 29% FUND 60% MANAGEMENT DEVELOPMENT 11% FY2021 REVENUE BY SEGMENT The Group has delivered another outstanding performance for the year ended 31 December 2021, with a robust and well-capitalised balance sheet backed by US$1.6 billion cash balance and net debt over total assets of 27.9% as of year-end. This is in line with ESR’s focus on advancing its asset light strategy and disciplined capital management. Key Financial Highlights: • Revenue (excluding construction revenue) increased by 21.7% from US$296.2 million in FY2020 to US$360.6 million in FY2021; • Adjusted EBITDA increased by 17.7% from US$366.0 million in FY2020 to US$430.8 million in FY2021; • Fund management EBITDA (segment result) increased by 34.8% from US$147.6 million in FY2020 to US$199.0 million in FY2021; • PATMI (excluding transaction costs related to ARA) increased by 31.7% from US$286.5 million in FY2020 to US$377.3 million in FY2021; and • Profit for the year (excluding transaction costs related to ARA) increased by 30.4% from US$314.7 million in FY2020 to US$410.5 million in FY2021. CHINA 34% SOUTH KOREA 15% JAPAN 30% AUSTRALIA 12% SINGAPORE 7% INDIA/OTHERS 2% FY2021 REVENUE BY COUNTRY* Revenue The Group’s revenue increased to US$404.4 million in FY2021 from US$388.3 million in FY2020. Total group revenue (ex-construction) increased by 21.7% from US$296.2 million in FY2020 to US$360.6 million in FY2021, driven by higher fees from the fund management segment. Management fees increased by 28.9% from US$189.3 million in FY2020 to US$244.0 million in FY2021, supported by well-established fund management platform with record AUM growth of US$39.4 billion, up 32% year-onyear (“YoY”). Construction revenue were from outstanding projects executed after disposal of construction arm by ESR Australia in September 2020. Accordingly, overall construction revenue decreased by 52.5% from US$92.2 million in FY2020 to US$43.8 million in FY2021, while the cost of sales also decreased correspondingly. Rental income increased by 9.0% from US$101.4 million in FY2020 to US$110.5 million in FY2021. Excluding the effect of disposal of ESR Australia Logistics Partnership (“EALP”) in June 2020, rental income increased by 30.3% YoY, driven by robust demand and leasing from customers in the New Economy sector. Geographically, revenue from Australia made up of 21.6% of the Group’s revenue, decreased from US$141.2 million in FY2020 to US$87.5 million in FY2021 mainly due to disposal of construction arm. Excluding construction revenue, revenue from Australia made up of 12.1% of the Group’s revenue. China, Japan and South Korea markets accounted for 79.2% of the Group’s revenue (exconstruction). These four markets collectively made up of 91.3% of the Group’s revenue. Singapore and India made up of the remaining 8.7%. *excludes construction revenue R E A C H I N G N E W H E I G H T S 16 ESR STANDALONE FY2021 STRATEGIC REPORT
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