SINGAPORE – Mapletree Investments (“Mapletree” or “the Group”) reported a sustained revenue of S$2.9 billion and net profit of S$1.2 billion in Financial Year 2022/2023 (“FY22/23”), which ended 31 March 2023. Operational performance improved on the back of gradual recovery from the Covid-19 pandemic and higher contributions from Mapletree Pan Asia Commercial Trust (“MPACT”) following the increased stake. The Group’s diversified portfolio skewed towards fast growing logistics and data centre sectors, and prudent hedging practices helped to underpin its resilience in the face of economic headwinds and market volatility. Mapletree also recorded a gain of almost S$700 million with various capital recycling initiatives during the year.
Mr Hiew Yoon Khong, Mapletree’s Group Chief Executive Officer said, “Despite the challenging market conditions impacted by geopolitical tensions, high interest rate environment and absence of revaluation gains with cap rate expansions, Mapletree remained resilient. The Group’s EBIT + SOA1 grew by 2.8% to S$2.1 billion, due to overall improvements in operations especially in the retail, logistics and student accommodation sectors. We continue to focus on strengthening the overall performance of our assets to maintain the competitiveness of our portfolio, investing in resilient asset classes with long-term growth potential, and strengthening our balance sheet through our capital management initiatives.”
In FY22/23, the Group’s recurring earnings stood at S$779.7 million. Total assets under management (“AUM”) held steady at S$77.4 billion and would have exceeded S$80 billion if not for the strong Singapore Dollar, a testament to the resilience of Mapletree’s globally diversified portfolio. Managed AUM also increased by 2.9% to S$60.2 billion as the Group continued to deliver on its active capital management strategy, with the launch of two new funds, namely, Mapletree China Logistics Investment Private Fund (“MCLIP”) and an India private fund.
As at 31 March 2023, the Group’s cash reserves and committed undrawn facilities remain strong at S$14.2 billion, and shareholders’ funds increased slightly to S$19.9 billion.
Added Mr Hiew, “Looking ahead, we will focus on strengthening our balance sheet to navigate the ongoing market uncertainty through an active but prudent capital management strategy, while investing in opportunities with long-term growth and value, including development projects in higher growth markets in Asia. As the heightened interest rate environment persists, we aim to leverage our core competencies to invest and develop in resilient assets and markets such as logistics development projects in China, India, Vietnam, Malaysia, Japan and Australia, while growing our capital management business in these markets for greater, long-term returns. We are confident that our robust business model will enable us to continue our sustained performance going forward, despite the challenging environment.”
In FY22/23, the Group reaffirmed its focus on logistics with the acquisition and development of new logistics sites in India, Vietnam and Australia as well as the completion of 14 logistics parks in China. Mapletree is also developing another 40 logistics parks in China. Overall, the Group’s total logistics AUM grew to S$30.4 billion, making it one of the leading logistics real estate developer-operator-manager globally.
Integral to its business model, the Group continued its active capital management execution. In December 2022, Mapletree launched MCLIP, its inaugural open-ended fund focused on China logistics development assets with strong investor support, a testament to Mapletree’s strategy and track record in the country’s logistics sector. With a “build-to-core” strategy, MCLIP aims to deliver sustained returns through a combination of growing distribution yields and net asset value growth. Since the Group’s entry into the China logistics market nearly two decades ago, Mapletree has established itself as the country’s top five largest logistics owner-operator with a growing footprint of close to seven million square metres in completed logistics AUM.
In addition, Mapletree entered into a strategic partnership with Ivanhoé Cambridge to launch a private fund to develop, own and operate technology-sector-focused workplaces in India with an investment capacity of over CAD 2.5 billion (~S$ 2.5 billion2). This platform will focus on both stabilised and development of high-quality Class A workplace assets in key economic hubs in India.
Additional information on key highlights in FY22/23:
Prudent Capital Management
Following the merger of Mapletree Commercial Trust (“MCT”) and Mapletree North Asia Commercial Trust, MCT was renamed MPACT in August 2022 – a flagship, Asia-focused commercial real estate investment trust. With ready footholds in Singapore, Hong Kong SAR, China, Japan and South Korea, MPACT serves as a proxy to the key gateway markets of Asia and is well-positioned to capitalise on opportunities in Asia to secure sustained, long-term growth.
In March 2023, Mapletree Logistics Trust (“MLT”) announced the proposed acquisitions of six prime, modern and mostly new logistics assets in Japan, one logistics asset in Sydney, Australia, and another in Icheon-si, Gyeonggi-do, South Korea for a total price of S$904.4 million. The Trust also announced the potential acquisition of two modern logistics assets in China for S$209.6 million, as well as the divestment of an older logistics facility in Hong Kong SAR. The proposed acquisitions will accelerate MLT’s portfolio rejuvenation to produce a resilient and future-ready portfolio comprising high-quality, modern logistics assets.
Despite the volatile capital market, Mapletree’s REITs continued to build a strong base of funding resources to fund operations and investment opportunities. Through a private placement, MLT raised S$200 million, in conjunction with the acquisition of the various assets in March 2023. MPACT established a S$5 billion Euro Medium Term Securities Programme in September 2022 and subsequently tapped into this programme by issuing S$150 million fixed rate senior green notes in March 2023. This issuance is also in line with MPACT’s newly established Green Finance Framework, allowing MPACT to secure funds from capital providers who share similar commitments on the sustainability front. MIT also raised total proceeds of S$184.1 million from the distribution reinvestment plan for distributions from Q3 FY21/22 to Q3 FY22/23 for the progressive funding needs of the redevelopment project at Kallang Way, called Mapletree Hi-Tech Park @ Kallang Way.
Focus on Sustainability
In FY22/23, Mapletree has made progress in its journey towards becoming net zero by 2050 with the further implementation of sustainability policies focused on embedding economic, social and governance (“ESG”) in its investment decisions, operations, and development projects. Further demonstrating its pledge to sustainable business practices, Mapletree became a signatory to the UN-supported Principles of Responsible Investment (“UN PRI”).
Some of our key achievements in FY22/23 include:
- Attaining 3 out of 5 stars in the inaugural 2022 GRESB Real Estate Assessment for Mapletree. The three REITs have already been on GRESB since 2021 with improved scores.
- 100% increase in solar generating capacity installed across assets globally, with the installation of solar PV panels on all new warehouse buildings wherever feasible.
- About 53% female representation across the Group’s workforce and Mapletree’s senior management.
In April 2023, the Group further reinforced its ESG commitment with a target to plant at least 100,000 trees by 2030 across its assets globally, as well as in the communities it operates in. Mapletree commemorated its commitment with a tree planting day at Mapletree Industrial Trust’s (“MIT”) newest development, Mapletree Hi-Tech Park @ Kallang Way.
With an NLA of about 68,921 sqm, Mapletree Nanjing Jiangning Modern Logistics Park is located in Nanjing, China. Installation of solar panels was completed in early May 2023.
MIT completed its largest redevelopment project of flatted factories into a new high-tech industrial park, Mapletree Hi-Tech Park @ Kallang Way with an NLA of about 67,735 sqm.
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Footnotes:
1 MCLIP’s initial portfolio of 43 assets comprises 19 completed assets and 24 development projects as at 15 December 2022. Upon completion of the development projects, the initial portfolio will have an NLA totalling 3 million sqm.
2 S$ fund size based on exchange rate as at date of fund inception.
In FY22/23, Mapletree has made progress in its journey towards becoming net zero by 2050 with the further implementation of sustainability policies focused on embedding economic, social and governance (“ESG”) in our investment decisions, operations, and development projects. Further demonstrating our pledge to sustainable business practices, Mapletree became a signatory to The UN-supported Principles of Responsible Investment (“UN PRI”).
Headquartered in Singapore, Mapletree is a global real estate development, investment, capital and property management company committed to sustainability. Its strategic focus is to invest in markets and real estate sectors with good growth potential. By combining its key strengths, the Group has established a track record of award-winning projects, and delivers consistent and high returns across real estate asset classes.
The Group manages three Singapore-listed real estate investment trusts (“REITs”) and eight private equity real estate funds, which hold a diverse portfolio of assets in Asia Pacific, Europe, the United Kingdom (“UK”) and the United States (“US”). As at 31 March 2023, Mapletree has assets under management of S$77.4 billion, comprising office, retail, logistics, industrial, data centre, residential and student accommodation properties.
The Group’s assets are located across 13 markets globally, namely Singapore, Australia, Canada, China, Europe, Hong Kong SAR, India, Japan, Malaysia, South Korea, the UK, the US and Vietnam. To support its global operations, Mapletree has established an extensive network of offices in these countries.
