DIRECTORS’ REPORT The Board is pleased to present this report together with the Consolidated Financial Statements of the Group for the year ended 31 December 2021. PRINCIPAL ACTIVITIES The Group is the largest Asia Pacific focused logistics real estate platform by gross floor area and by value of the portfolio assets. In the course of the year ended 31 December 2021, the Group was principally engaged in (i) the development, construction and sale of completed properties; (ii) the management of the underlying assets on behalf of its capital partners via the funds and investment vehicles it managed; and (iii) the investment in completed properties, co-investment in the funds and investment vehicles and the public REITs it managed, and other investments. The activities of its principal subsidiaries, associate and joint ventures are set out in notes 1 and 15 to the Consolidated Financial Statements. SHARE CAPITAL Details of the movements in the share capital of the Company and the shares issued during the reporting year are disclosed in note 39 to the Consolidated Financial Statements. BUSINESS REVIEW A fair review of the Group’s business, a discussion about the principal risks and uncertainties facing the Group, and an indication of likely future development in the ESR Group’s Standalone FY2021 business are detailed in the sections headed “ESR Standalone FY2021 Operational Highlights” on pages 10 to 11, “ESR Standalone FY2021 Financial Review” on pages 16 to 19, “Message from Chairman” and “Message from CEOs” on pages 36 to 43, and an analysis using key financial performance indicators are set out in “ESR Standalone FY2021 Financial Highlights” on pages 8 to 9 of this annual report. An analysis using key performance indicators of the Pro Forma ESR Group are set out in the “Operations Review” on pages 82 to 91 of this annual report. RESULTS The financial results of the Group for the year ended 31 December 2021 are set out in the Consolidated Financial Statements of the Group on pages 129 to 238 of this annual report. BANK AND OTHER BORROWINGS Particulars of bank and other borrowings of the Group as at 31 December 2021 are set out in note 25 to the Consolidated Financial Statements. DIVIDEND The Board did not recommend the payment of a final dividend for the year ended 31 December 2021 (2020: nil). DIVIDEND POLICY The Board’s long term objective is to deliver returns to shareholders that is sustainable and in line with the long-term growth of the Company. It is expected that the addition of ARA Group, with its perpetual/core capital and asset-light approach, will enhance ESR’s earnings resilience and capacity to pay dividends. Subject to maintaining an optimal capital structure to ensure that adequate capital resources are available for business growth and investment opportunities, the Board will review the dividend policy in 2Q2022, including the merits and timing of future dividend payments. 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 93
RkJQdWJsaXNoZXIy ODIwNTc=