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ESR Group Limited Annual Report 202417STRATEGIC REPORTSCORPORATE GOVERNANCEFINANCIAL STATEMENTSAs the interest rate environment shifts favourably, a rebound in asset values is expected %u2014 facilitating fund exits, promote income, and a resurgence in development starts. This will also enhance balance sheet asset sales and the completion of non-core divestments and catalyse capital recycling activities. At the same time, we are expanding ESR%u2019s offerings by introducing new core vehicles and increasing opportunities for pan-APAC discretionary funds.As we look to the future and amid the announced privatisation of ESR, we remain focused on our key business priorities to ensure sustainable business growth as well as improve profitability and our operational efficiency to bring value to our stakeholders.We thank our shareholders for their support, our Board of Directors for their guidance, and our ESR Executive Committee leadership team and colleagues for their dedication as we position ESR for our next phase of growth.Stuart Gibson and Jinchu ShenGroup Co-founders and Co-CEOsOur social impact initiatives included 4,500 employee volunteerism hours in outreach activities organised in collaboration with stakeholders in the communities where ESR operates.We received recognition for our performance across global ESG benchmarks, including GRESB, the global ESG benchmark for financial markets, as well as the Institutional Shareholder Services QualityScores. The Group also maintained its %u201cLow Risk%u201d rating in the Sustainalytics ESG Risk Rating.LOOKING AHEAD AT ESR%u2019S GROWTH TRAJECTORYWe have entered 2025 with a clear and renewed focus on core growth engines to drive ESR%u2019s development. The robust demand for space and investment solutions in logistics real estate, data centres, and infrastructure across APAC presents significant opportunities driven by strong structural long-term trends in the region, including robust GDP growth, increasing disposable income, exponential growth in e-commerce demand, and rapid digital transformation.Our growth trajectory is also backed by a sound liquidity position and a strong capital base with cash balances and committed loan facilities of approximately US$4 billion. Reinforcing the Group%u2019s strengths in sustainable financing and operations, we secured a landmark five-year syndicated sustainability-linked facilities totalling US$2.5 billion in 2024. This is the largest sustainability linked loan raised by ESR to-date and is one of the largest within the real estate space in Southeast Asia.Dongguan Hongmei Park Phase II, Guangdong Province, China