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ESR Group Limited Annual Report 202425STRATEGIC REPORTSCORPORATE GOVERNANCEFINANCIAL STATEMENTS20%19%10%3%17%14%17%India and SEA1Australia and New ZealandHong KongPan-APACJapan and South KoreaMainland ChinaEurope and UKUS$71.4billionFee-related AUM By Region 1. Includes Singapore listed REITsAs of 31 December 2024over75%ofthistotal.FundmanagementEBITDAwaslower y-o-y as there were nil promote fees in FY2024 compared to US$182 million recognised in the year before. The EBITDA and consequently PATMI for the year was significantly impacted by marked-to-market losses tied to non-core divestments, as well as asset and project revaluations which are non-cash in nature. The resulting net loss for FY2024 was materially driven by these noncash movements arising from the abovementioned macroeconomic headwinds as well as corporate actions in alignment with the Group%u2019s strategic business priorities; hence, it is not reflective of the expected long-term performance of the Group.FUND MANAGEMENT: Y-O-Y GROWTH IN RECURRING CORE ASSET FEE INCOME DESPITE MARKET CHALLENGESESR achieved Fund Management segment revenue (%u201cFee Income%u201d) of US$498 million for FY2024. Recurring core asset fee income from asset management, investment management and property management grew approximately 6.6% y-o-y despite downward pressure on valuations. However, the pace of transaction activity across the Group has slowed significantly in FY2024, thus lowering transaction-based fees y-o-y. Apart from lower promote fees, the foreign exchange translation effects arising from weakened APAC currencies against the USD also contributed to the variance.Note:4Building loadDriving long-term sustainable growth and shareholder value remains a key focus. The ongoing efforts in business streamlining to align with favourable structural trends in digitalisation and decarbonisation have further increased the proportion of New Economy Fee-related AUM to approximately 60% of the Group%u2019s Fee-related AUM. In tandem, significant progress has been made towards achieving deeper integration across ESR%u2019s operating platforms after the completion of its acquisition of the founders%u2019 shares in LOGOS. As a unified group of high performing teams embedded in a culture of collaboration, continuous improvement and innovation, the Group strives to attain its corporate goals in the areas of profitability and enterprise value, balance sheet optimisation, operational excellence and corporate citizenship.Expansion in product delivery, operating scale, pipeline and capital for ESR%u2019s data centre platform alongside its infrastructure platform are important growth pursuits for the Group. ESR has entered into a joint venture with CloudHQ to co-develop and operate a US$2 billion, 130-MW4 hyperscale data centre campus in Nanko Kita, Osaka, Japan, over three phases. The core and shell of the first phased hyperscale data centre asset ESR Cosmosquare OS1 Data Centre was completed in August 2024, underscoring the Group%u2019s operational execution capabilities and its commitment to developing worldclass solutions and campuses for partners in regional markets. This development is part of the Group%u2019s data centrestrategytoexecute575MWofdatacentresitesinkey markets across APAC, in addition to a pipeline of more than 2 GW worth of land and projects.The Group%u2019s underlying business is fundamentally resilient, underpinned by the sustained growth in recurring core fee income from asset management, investment management and property management. ESR recorded Total Revenue of US$639 million for FY2024, and Fund Management Segment Revenue contributed 29%19%10%19%10%13%India and SEAAustralia and New ZealandHong KongJapan and South KoreaUS and EuropeMainland ChinaUS$498millionFee Income By Region 1. Includes Singapore listed REITsFY2024Against the backdrop of muted fund raising for the sector, US$3.1 billion of capital was raised in the second half of 2024 aggregating to a total of US$5.4 billion for FY2024. New Economy capital raise was strong at US$4.2 billion, an increase of 53% y-o-y. In addition to capital sourced for the Group%u2019s core and development fund mandates, the first real estate credit investment platform of US$325 million was established in South Korea, capitalising on the opportunities in the country%u2019s tight credit market amid strong investor interest.As at 31 December 2024, the Group had substantial uncalled capital of US$22.3 billion for deployment to further grow Fee-related AUM.