OPERATIONS REVIEW FUND MANAGEMENT SEGMENT Record capital fundraising of US$13.2 billion with an average co-investment of 8%1 US$9.8 billion of capital2 to be deployed 63%3 of AUM from perpetual and corecapital vehicles with 14 listed REITs FY2021 KEY HIGHLIGHTS ESR Bhiwandi 1 Logistics Park, India FUND MANAGEMENT SEGMENT We earn fee income from managing the underlying assets on behalf of our capital partners through the funds and investment vehicles we manage. Our fees include base management fees, asset management fees, acquisition fees, development fees and leasing fees. We also participate in a share of profits through promote after we have returned our investors’ initial capital investment and upon exceeding a predetermined target internal rate of return. The funds and investment vehicles we manage vary in risk profiles from private opportunistic development strategies to private core/core-plus income producing strategies and publicly listed REITs. Our fund management platform offers a variety of products across the spectrum of geography, risk and liquidity to attract broad sections of the global investor universe, gives us the ability to manage the underlying assets across the development cycle and provides us with an efficient platform for recycling our own capital through the disposal of properties held on our balance sheet to the funds and other investment vehicles we manage or to third parties. We continuously enhance our portfolio and risk management processes to strive to meet our return objectives while mitigating risk at both the underlying asset and the fund level. With the successful completion of the acquisition of ARA, the ESR Group is the largest sponsor and manager of REITs in APAC with 14 individual REITs representing over a 10% market share. This additional fund management income from predominantly perpetual and core-capital vehicles enhances the Group’s resilience. We are committed to the long-term growth of all ESR-managed REITs and our sponsorship will include access to our strong portfolio of real estate properties as well as financial and operational support. The Group’s continued commitment and support will ensure the REITs are well positioned to capture the largest secular trends and deliver long-term sustainable growth and expansion. Notes: 1 Average co-investment percentage on new funds raised by the Enlarged ESR Group in FY2021. 2 Includes uncalled equity and associated debt. 3 Including the AUM of associates (Cromwell and Kenedix) as of 31 December 2021. R E A C H I N G N E W H E I G H T S 86 PRO FORMA ESR GROUP
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