INVESTMENT 44% FUND 26% MANAGEMENT DEVELOPMENT 30% PATMI AND EBITDA EBITDA increased by 16.3% from US$571.2 million in FY2020 to US$664.2 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. Higher PATMI and EBITDA were driven by accelerating growth in the Group’s fund management AUM, coinvestments in associates and joint ventures. Fair value gain on investment properties increased by 22.2% to US$274.5 million in FY2021 from US$224.7 million in FY2020. The increase was mainly contributed by completed and development assets in China, as well as data centre assets acquired in Osaka, Japan and Hong Kong during the year. The Group’s share of profits from joint ventures and associates increased close to 60.0% from US$105.1 million in FY2020 to US$168.1 million in FY2021. The growth is driven by the Group’s investment in South Korea and ESR Milestone Partnership (“Milestone Portfolio”) in Australia. The acquisition of the A$3.8 billion Milestone Portfolio comprising 45 high-quality, income producing assets over 3.6 million sqm and the associated operating business, by ESR Australia was completed in June 2021. Milestone Portfolio value that has increased by 5.5% in six months since acquisition contributed to the Group’s share of its results. Additionally, the Group recorded higher share of results in its co-investment in South Korea driven by higher assets value appreciation. The Group’s weighted average interest rate cost as of 31 December 2021 was 4.1% compared to 4.6% as of 31 December 2020. Overall finance cost increased by US$16.1 million or 10.9% in FY2021 despite total borrowings increased by 28.9% year-on-year. With the Group’s disciplined capital management, it has continued to lower its borrowing costs. Administrative expenses increased by 19.9% from US$201.7 million in FY2020 to US$241.8 million in FY2021 primarily due to higher non-recurring professional fees incurred for acquisitions of assets and investments, and operating costs to support growth and expansion of the Group. Excluding transaction costs related to ARA, administrative expenses increased at a modest pace of 6.1% from US$201.7 million in FY2020 to US$214.0 million in FY2021. SEGMENT RESULTS FY2021 SEGMENTAL RESULTS (EBITDA) Investment segment results increased by 51.6% from US$225.9 million in FY2020 to US$342.5 million in FY2021. The increase was mainly contributed by (i) fair value gain from the Group’s investment properties in China, and newly acquired data centre assets in Hong Kong and Osaka, Japan; and (ii) Higher share of results from co-investments in South Korea and Milestone Portfolio in Australia. In FY2021, the Group recorded dividend income of US$32.6 million received from Japan co-investments. Accordingly, the Group recorded share of reduction in the carrying value in these co-investments of US$32.0 million in aggregate. Excluding such amount, the change in carrying value of financial assets and liabilities at fair value through profit or loss would have been a gain of US$28.1 million. The fund management segment result increased by 34.8% from US$147.6 million in FY2020 to US$199.0 million in FY2021. The increase was driven by fund AUM growth across its Australia, Japan and South Korea platforms and higher recurring income base. The Group saw higher growth in fund management EBITDA of 34.8% vis-à-vis 28.9% growth in fund management revenue benefitting from the economies of scale achieved to date in its fund management platform. E S R C A Y M A N L I M I T E D A N N U A L R E P O R T 2 0 2 1 17
RkJQdWJsaXNoZXIy ODIwNTc=