ESR Interim Report 2020 (EN)

With Asia spearheading new economy development, innovation as well as consumption and supply chain transformation, Asia Pacific logistics real estate is poised to be a robust growth leader for the long term. To continuously stay ahead in this competitive market, innovation, hardware and soft skills – a network with a strong regional presence, quality assets backed by strong tenants, land sourcing ability, capital raising and asset management skills, and a proven track record – are all profoundly important. The Group will continue to evaluate attractive investment and development opportunities, while remaining prudent in our capital management approach over the rest of the year. ESR is poised to further cement its position not only as the leading logistics real estate platform in Asia Pacific, but as a company that consistently leads the industry with the highest standards of innovation, in order to service the new economy through different market conditions. FINANCIAL REVIEW For the 1H2020, the Group achieved solid YoY growths, remained profitable and well capitalised with robust balance sheet and strong liquidity. This is attributable to strong operating performance across the Group’s investment, fund management and development segments across its well-diversified six markets that form the three key pillars of the Group’s sustainable business model. It also demonstrated the Group’s disciplined capital management approach. REVENUE The Group’s revenue grew by 26.9% from US$155.8 million in 1H2019 to US$197.6 million in 1H2020, driven by strong contributions from fundmanagement and development segments. Management Discussion and Analysis Management fee increased by 35.3% from US$61.8 million in 1H2019 to US$83.6 million in 1H2020 mainly from growth in recurring income base; as well as full half year contributions from consolidation of Propertylink Group acquired from March 2019 and Sabana REIT manager from June 2019, respectively. Construction revenue increased by 46.6% from US$37.7 million in 1H2019 to US$55.2 million in 1H2020 from higher development activities. Correspondingly, construction cost contributed to increase in cost of sales. Geographically, revenue from Australia market made up of 43.0% of the Group’s revenue, representing an increase from US$53.9 million in 1H2019 to US$84.9 million in 1H2020. Excluding construction revenue, Australian market revenue increased from US$16.3 million in 1H2019 to US$29.7 million in 1H2020; and made up of 20.8% of the Group’s 1H2020 revenue. China, Japan and South Korea markets accounted for 68.5% in aggregate to the Group’s 1H2020 revenue (ex- construction). These four markets collectively made up of 89.3% of the Group’s revenue. Singapore and India made up of the remaining 10.7% revenue (ex-construction) of the Group. 1H2020 Revenue by Country* • China 31% • Japan 24% • South Korea 13% • Singapore 8% • Australia 21% • India 3% 1H2020 Revenue by Segment • Investment 30% • Fund Management 42% • Development 28% * Excludes construction revenue 12