Income Expenses Key Drivers INVESTMENT • Completed B/S properties Rental income + revaluation gains • Fund co-investments Pro rata earnings • Listed securities Dividend income • Solar energy income • Direct costs for rental and solar energy income • Allocated administrative expense • Rental growth and high occupancy • Cap rate compression • High dividend payout from listed securities FUND MANAGEMENT • Base/Asset management fees • Development fees • Acquisition fees • Leasing fees • Carried interest/promote • Allocated administrative expenses • Strong fund AUM growth • Significant development pipelines in funds • Promote fee opportunity DEVELOPMENT • B/S development profits Revaluation gains on properties under construction + disposal gain on sale • Funds’ development profits • Construction income • Construction costs • Allocated administrative expenses • Significant development pipelines (B/S, funds) • Track record of strong development profit margins • Asset recycling from B/S or development funds into core funds / REITs Notes: 1 Includes the AUM of associates (Cromwell and Kenedix) as of 31 December 2021. 2 Includes ARA LOGOS Logistics Trust, ESR-REIT and ESR Kendall Square REIT as of 31 December 2021. 3 As of 31 December 2021. 4 As of 31 December 2021, excluding assets managed by Associates. 5 Private real estate vehicles include ESR balance sheet investment properties and non-REITs AUM of Cromwell and Kenedix; includes credit AUM from Venn. KEY DRIVERS OF OUR GROUP’S THREE PILLARS OF BUSINESS – PRO FORMA With the completed acquisition of ARA which brings together LOGOS to form a multi-pronged platform, the enlarged ESR Group has a combined data centre pipeline3 of over 1,200MW of capacity across the region, reinforcing the robust prospects of the Group’s industry-leading New Economy real estate platform. PRO FORMA ESR GROUP OPERATIONAL HIGHLIGHTS For FY2021, we recorded a 44% year-on-year growth in new economy assets under management (AUM) which propelled our total AUM up 21% to US$140.2 billion as at 31 December 2021, on the back of increased scale across APAC. Underpinning our robust scale, the Enlarged ESR Group has greater depth in offering a comprehensive real asset investment solutions ecosystem, of which US$95 billion in invested in private investment vehicles5 and US$45 billion in Public REITs1. With our growing and extensive reach across Asia Pacific, we are well-positioned to support our tenants in their regional expansion plans. Total AUM (US$ billion) New Economy (ESR and LOGOS) ARA FY2020 116.4 21% y-o-y FY2021 140.2 41.0 75.4 59.0 81.2 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 83
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