SINGAPORE – Mapletree Investments (“Mapletree” or “the Group”) is pleased to announce a net profit of S$1.96 billion in Financial Year 2021/2022 (“FY21/22”) which ended 31 March 2022, a 6.2% growth from the previous financial year. The Group delivered a record year of recurring earnings at S$810.2 million, a year-on-year (“y-o-y”) increase of about 27.9% from FY20/21. This was boosted further by some S$1.1 billion in stronger property revaluation gains.

Mr Hiew Yoon Khong, Mapletree’s Group Chief Executive Officer said, “Despite the uncertainty brought about by the global Covid-19 pandemic, strained US-China relations, rising inflation and interest rates, Mapletree’s ability to remain financially flexible and nimble has helped the Group achieve yet another year of stable results. This was driven by improved operational performance and contributions from new acquisitions in resilient sectors such as data centres, logistics, offices and student accommodation. Coupled with our ongoing efforts in building up an active capital management platform, the Group attained a robust S$12.4 billion increase in total AUM to S$78.7 billion in FY21/22. We believe our capital management business has achieved the requisite scale and track record to be able to capitalise on more opportunities that will accelerate our AUM growth going forward.” 

Mapletree recorded revenue growth of 4.6% y-o-y to S$2,861.1 million in FY21/22 from the previous financial year. The Group’s EBIT + SOA² rose by 9.5% to S$2,040.1 million, primarily attributed to its four Singapore-listed real estate investment trusts (“REITs”) and contributions from new acquisitions in the US and Europe. ROE maintained at above 10%.

As at 31 March 2022, the Group’s cash reserves stood at S$2,070.4 million and its debt to equity ratio reduced by 2.2 percentage points to 58.3%. Shareholder’s funds have also increased by 10.5% y-o-y to S$19,519.9 million, largely due to higher PATMI³ for the financial year.

Added Mr Hiew, “In the penultimate year of our third Five-Year Plan, we will continue to pursue investment opportunities across different asset classes globally and deepen our development capabilities, particularly in the logistics and student housing sectors. With the easing of travel restrictions, rise in vaccination rates and reopening of economies, we foresee that the demand for quality office space and student accommodation will return. Focusing on these strategies, we will be on track to meet most of the targets set in our current Five-Year Plan.”

In FY21/22, the Group expanded its student accommodation portfolio with several acquisitions in the United Kingdom (“UK”) and the United States (“US”). As at 31 March 2022, the Group’s student accommodation portfolio comprises 57 assets with over 24,000 beds across 38 cities in Canada, the UK and the US. Mapletree also made several strategic acquisitions of office properties in the US, China and Japan, at a total transactional value of approximately S$704 million.

In addition, Mapletree reinforced its global logistics footprint with its first logistics land acquisition in India – a 49.7-acre site in Hoskote, Bengalaru with a development potential of 107,941 square metres (“sqm”) in total gross floor area (“GFA”). The Group also grew its global logistics AUM with two portfolio acquisitions in the US at approximately US$3 billion (~S$4 billion), supplementing our Asian logistics development pipeline in China and Vietnam.

Mapletree remains committed to generating stable and recurring income through an active capital management platform. The Group significantly scaled up its private fundraising activity, achieving a record total private fundraise of US$2 billion (~S$2.7 billion) in FY21/22, following the successful syndication of Mapletree US Income Commercial Trust (“MUSIC”), a US$552 million (~S$745.2 million)⁴ office fund in the US and Mapletree US Logistics Private Trust (“MUSLOG”), a US$1.4 billion (~S$1.9 billion)⁴ logistics fund also in the US. In terms of capital recycling, the Group divested S$946 million of logistics assets to Mapletree Logistics Trust (“MLT”).

Through prudent capital management, the Group will continue to launch new funds aligned with investors’ interests and market demand, as well as continue its capital recycling initiatives to deliver strong returns. Mapletree also values the importance of integrating sustainability into our business. The Group’s refreshed sustainability strategy will include the development of a “net-zero by 2050” roadmap, drive change through various energy- and water-reduction initiatives, increase the usage of renewable energy and reinforce sustainability principles across our investment decisions, development projects as well as ongoing operations in a holistic manner. 

Additional information on key highlights in FY21/22:

Strategic Investments
Mapletree completed two large logistics portfolio acquisitions focusing on the US, comprising 141 high-quality, income-producing assets for a total investment value of approximately US$3 billion (~S$4.1 billion) in July and September. This brings Mapletree’s global logistics AUM to about S$29.3 billion at an estimated net lettable area (“NLA”) of over 21 million sqm across Asia Pacific, Europe and the US. Well located in core logistics hubs, these assets are situated along key transportation nodes and have a well-diversified tenant base in growth sectors such as e-commerce and third-party logistics.

In the UK, four student accommodation assets with 921 beds located in Nottingham, Leeds, Exeter and Bristol were added to the Group’s student housing portfolio in August 2021. These assets serve universities ranked among the top 20 in the UK. Mapletree also acquired a 135-bed student housing asset, New Century Place building 1 and 2, situated in Reading, the UK, and Terrapin Row, a 1,493-bed student housing building located near the University of Maryland in the US. Together with the acquisition of New Century Place Building 3 in FY20/21, Mapletree now owns the entire New Century Place portfolio of 270 beds.

Prudent Capital Management
In November 2021, Mapletree successfully closed MUSLOG, the Group’s second fund close in FY21/22. MUSLOG is the Group’s 13th private equity fund and the 6th in a series of fully seeded funds that encompass Europe, US and Australia commercial properties, Europe and US logistics assets, as well as student accommodation in the UK and the US.

In FY21/22, MLT announced the acquisition of 23 logistics facilities in Singapore, Australia, China, Japan, Malaysia, South Korea and Vietnam, for approximately S$1.9 billion. In addition to stabilised assets, MLT announced the proposed acquisition of two leasehold industrial properties in Subang Jaya, Malaysia, adjacent to MLT’s existing Subang 3 and 4, allowing for  the integrated development of the first modern ramp-up warehouse in Subang Jaya with a potential GFA of about 130,000 sqm. MIT also announced the acquisition of 29 data centres located in the US for approximately US$1.3 billion (~S$1.8 billion) as it continues to deepen and diversify its data centre footprint across key markets in the US.

Through private placements and preferential offerings, MIT and MLT raised S$823.3 million and S$693 million respectively.

The proposed merger of MCT and MNACT into a flagship Asian commercial REIT, Mapletree Pan Asia Commercial Trust (“MPACT”), was announced in December 2021 and endorsed by respective unitholders on 23 May 2022. MPACT will be positioned to tap on the growth of Asian gateway markets and seeks to optimise unitholder returns through acquisition growth complemented by strategic divestments to redeploy the funds into higher yielding quality properties or other asset enhancement and redevelopment opportunities.

Key Developments
The Group deepened its presence in the China logistics market with a total of 44 new logistics properties under development, including 17 new plots of land tendered in FY21/22, which will deliver a total of 3 million sqm of NLA upon completion. This will bring the Group’s logistics footprint in China to 9 million sqm in GFA, a 12% increase y-o-y.

With the completion of several logistics parks in northern and southern Vietnam, a total GFA of over 100,000 sqm will be added to the portfolio, along with the acquisition of over 70-hectares of land for the development of logistics facilities. 

Asset Restoration
Mapletree completed the restoration and adaptive reuse of St James Power Station (“SJPS”), with a focus on preserving the historical architectural elements of the iconic monument while integrating it with modern building technologies. The SJPS Heritage Trail and Gallery was also launched, which features the history of SJPS, the evolution of HarbourFront Precinct, as well as restored maritime relics and an interactive digital art display. The building is leased to Dyson, a leading global technology company, as its global headquarters and research centre.

With 96,062 sqm of NLA, the logistics centre at 3955 East Holmes Road, Memphis, Tennessee, US, has good access to Routes 78 and I-55, and is located in close proximity to Memphis International Airport and BNSF Intermodal. The Property is one of the new additions to Mapletree’s logistics portfolio in FY21/22.

Mapletree Kaifeng Logistics Park in Henan Province, China, was completed in FY21/22. The property has an NLA of 74,962 sqm. 

The Group acquired Terrapin Row, a 1,493-bed student housing building in Maryland, the US, in December 2021, which is in close proximity to one of the top ranked universities in the US.

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Footnotes:
1 ROE denotes return on equity and is computed based on PATMI attributable to Equity Holder of the Company over shareholder’s funds.
2 Earnings before interest and tax (EBIT) plus share of operating profit or loss of associated companies and joint ventures (SOA), excluding residential profits, incentive fee from private funds’ divestment, revaluation gains or losses, divestment gains or losses, foreign exchange and derivatives gains or losses.
3 PATMI denotes net profit (after tax and non-controlling interests) attributable to Perpetual Securities Holders and Equity Holder of the Company.
4 S$ fund size based on exchange rate as at date of fund inception.