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ESR Group Limited Annual Report 202413STRATEGIC REPORTSCORPORATE GOVERNANCEFINANCIAL STATEMENTSWhile the results are below expectations, they are not reflective of the long-term performance of the Group. ESR%u2019s underlying business is fundamentally resilient, underpinned by the sustained growth in recurring core fee income from asset management, investment management, and property management. Despite downward pressure on valuations, we achieved a 6.6% year-on-year (%u201cy-o-y%u201d) increase. The uncertain near-term outlook notwithstanding, we are optimistic about the demand for space and investment solutions across APAC in our core business areas as we continue to build on the positive momentum and synergies to realise sustainable growth for ESR. Furthermore, underscoring investor confidence, we successfullyraisedUS$5.4billionincapitalover75%ofwhich was New Economy driven %u2014 growing our perpetual ESR-managed vehicles, including our core logistics fund in South Korea alongside the positive market response to our ESR C-REIT listing. At the same time, the successful integration of ESR and LOGOS into a unified platform further augments our ability to serve our capital partners, customers, and employees %u2014 enabling them to access and scale growth opportunities across our integrated network.ADVANCING A ONE ESR INTEGRATED PAN-APAC PLATFORM To drive ESR%u2019s sustainable growth in the years ahead, we prioritised the strengthening of business fundamentals and enablers in FY2024. To this end, as a unified group of high-performing teams who are embedded in a culture of collaboration, continuous improvement and innovation, the Group strives to attain our corporate goals in the areas of profitability and enterprise value, optimising the balance sheet, streamlining and simplifying operations, and delivering as One ESR.ESR is forging ahead with our clear and focused strategy %u2014 making a decisive pivot towards data centre and infrastructure, while building on our track record in logistics real estate. This has positioned the Group well to tap the opportunities in high-growth sectors, including e-commerce, logistics, and technology, that are powering economic growth and transforming how we live, work, and play. In 2024, ESR completed the integration with LOGOS, establishing a much larger, unified business spanning the broader APAC region. This strategic consolidation has created a platform that provides investors, capital partners, and customers with enhanced opportunities to access, expand, and diversify their investments across a broader range of geographies and strategies. The integrated platform also reinforces ESR%u2019s deep expertise and presence in all major APAC markets. Additionally, the integration has bolstered ESR%u2019s data centre strategy by enabling a multi-model operating platform that maximises flexibility and outcomes while capturing growth, scale, and diversification. Drawing strong investor interest, the Group has raised a combined US$2 billion across two funds as One ESR. We are also executing on a 2-gigawatt development pipeline of secured land and power. This positions ESR as an early-mover to capitalise on surging data centre demand driven by AI, cloud, and 5G in tier-1 and emerging markets across APAC. ESR has also been actively laying the foundations for its infrastructure platform, which will deliver investment solutions backed by equity interests in assets, companies or platforms that drive decarbonisation initiatives, data transmission and use, and supply chain efficiencies. ESR Amagasaki Distribution Centre, Amagasaki City, Japan