OPERATIONS REVIEW INVESTMENT SEGMENT E-commerce and 3PLs comprise 62%1,2 of combined portfolio Healthy weighted average lease expiry of 4.7 years by income1,2 4.3 million sqm of space leased across portfolio2, 3 Strong portfolio occupancy of 94%2, 3 FY2021 KEY HIGHLIGHTS Our investment segment is divided into three main categories: (i) completed properties that we hold on our balance sheet, from which we derive total return, including rental income and appreciation in value; (ii) our co-investments in the funds and investment vehicles and the REITs we manage, from which we derive dividend income, pro rata earnings and/or pro rata value appreciation; and (iii) other investments, including our minority equity stakes in other companies. We are able to develop properties without the need to source equity for every individual project and can warehouse properties on our balance sheet if necessary. We use our strong balance sheet to acquire and own assets that have attractive risk-reward profiles and capture opportunities which may not fit the current investment criteria of our funds, and which may be used to seed future funds that we may establish. This provides attractive visibility to prospective capital partners and is an important advantage of our platform, which facilitates faster fundraising and enables us to realize development profits. Additionally, our investments in properties through our co-investments in the funds and investment vehicles we manage allow us to align our interests with those of our capital partners. BALANCE SHEET PROPERTIES The total AUM for the investment properties held on our balance sheet for the Enlarged Group was US$3.8 billion, accounting for approximately 2.7% of total AUM of across the portfolio as at 31 December 2021. Refer to “Property Portfolio” on pages 22 to 25 for information on ESR Standalone FY2021 Balance Sheet investment properties. DRIVEN BY NEW ECONOMY We lease the logistics facilities owned directly by us or by the funds that we manage to a broad range of large and mid-sized, multi-national and domestic tenants including e-commerce companies, 3PL providers, brickand-mortar retailers, manufacturers, cold-chain logistics providers and others. The majority of tenants in our portfolio service domestic consumption in Asia Pacific as logistics infrastructure continues to evolve for the modern economy. 50-80 Stanley Drive, Somerton, Victoria, Australia R E A C H I N G N E W H E I G H T S 84 PRO FORMA ESR GROUP
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