RIDINg the waves of change MAPLETREE INVESTMENTS PTE LTD ANNUAL 2020/ REPORT 2021 RIDINg ABOUT THE COVER The Covid-19 pandemic tested the RIDINg resilience and agility of individuals the waves THE WAVES and businesses that sought to navigate the new challenges and of change OF CHANGE emerge stronger. This year’s annual report cover features the sculpture Wave by Baet Yeok Kuan, located at Mapletree Business City, Singapore. The stainless steel waveforms and MAPLETREE INVESTMENTS fluidity of the sculpture symbolise PTE LTD ANNUAL 2020/ how Mapletree will continue to REPORT 2021 ride the waves of change, guided by sound leadership and effective strategies that enable the Group to forge ahead and pave the way for a sustainable future. REVENUE1 S$2,735.9 TOTAL AUM MILLION S$66.3 PATMI 2 BILLION S$1,849.9 MILLION CONteNTS Performance Highlights 2 BUILDING UP 30 MOVING TOWARDS 92 A STRONG PORTFOLIO A SUSTAINABLE FUTURE RISING ABOVE 4 NEW CHALLENGES Highlights of the Year 32 Sustainability Report 94 Corporate Overview 6 Financial Review 39 Sustainability – Corporate 125 Governance Message from the Chairman 8 Corporate Liquidity and 46 Financial Resources Sustainability – Risk 130 Interview with the Group 13 Management CEO STAYING AHEAD 50 OF CHANGING TIMES Financial Statements 133 Board of Directors 18 Operations Review 52 Group Senior Management 24 Property Portfolio 74 Awards and Accolades 29 Our Offices 87 Investment Activities and 88 Capital Management TOTAL AMOUNT TOTAL GROSS SET ASIDE TO FUND FLOOR AREA CORPORATE SOCIAL (SQUARE METRES) RESPONSIBILITY EXPANSIVE INITIATIVES ~23.6 PORTFOLIO ACROSS (SINCE FY10/11) MILLION 13 MARKETS S$32.2 MILLION 1 Revenue is adjusted to exclude incentive fee income and residential revenue. They are not deemed to be the core business activities for the Group. 2 PATMI denotes net profit after tax and non- controlling interests attributable to Perpetual Securities Holders and Equity Holder of the Company. performance highlights The financial year ended TOTAL ASSETS UNDER MANAGEMENT (AUM) 31 March 2021 (FY20/21) saw (FY20/21) Mapletree progressing into the second year of its third Five-Year Plan for the next stage of progress. Despite a challenging landscape, the S$66.3 Group successfully secured a strong foothold in real BILLION estate sectors across key global markets. AUM Overall, Mapletree’s revenue1 (S$ million) in FY20/21 was S$2,735.9 70,000 19,793 million, with profit after 46,536 tax and minority interests 18,275 (PATMI)2 registering a total of 42,204 60,000 17,977 S$1,849.9 million. Mapletree’s 37,747 assets under management (AUM) grew to S$66.3 billion 50,000 15,238 in FY20/21, with about 70% 31,051 being third-party AUM. 11,423 Mapletree also delivered 28,111 40,000 an average return on equity 11,774 22,972 (ROE)3 of 10.9% and return 4 7,853 on invested equity (ROIE) 30,000 20,562 of 15.1% between FY19/20 6,381 18,224 and FY20/21. 5,020 8,450 16,744 11,401 20,000 10,000 0 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 Financial Year Owned assets Managed assets 2 MAPLETREE INVESTMENTS PTE LTD ANNUAL REPORT 2020/2021 FY20/21 – ROE3 10.6% PATMI2 AVERAGE ROE3 (FY20/21) (From FY19/20 to FY20/21) 10.9% S$1,849.9 FY20/21 – ROIE4 MILLION FEE INCOME5 8.6% (S$ million) 600 AVERAGE ROIE4 518 (From FY19/20 to FY20/21) 500 451 400 366 302 % 267 277 15.1 300 241 188 203 200 134 1 Revenue is adjusted to exclude incentive fee income and residential revenue. They are not 100 deemed to be the core business activities for the Group. 2 PATMI denotes net profit after tax and non- 0 controlling interests attributable to Perpetual 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 Securities Holders and Equity Holder of the Company. Financial Year 3 ROE denotes return on equity and is computed based on PATMI attributable 6 to Equity Holder of the Company over EBIT + SOA shareholder’s funds. (S$ million) 4 ROIE is computed based on adjusted* PATMI over the Group’s equity held at original 2,500 2,308 invested cost (OIC). 5 Includes REIT management fees. 2,092 6 Earnings before interest and tax (EBIT) plus share of operating profit or loss of associated 2,000 1,863 companies and joint ventures (SOA), excluding 1,668 residential profits, incentive fee from private 1,572 funds’ divestment, revaluation gains or losses, 1,500 1,295 divestment gains or losses, foreign exchange and derivatives gains or losses. 1,141 1,042 7 EBIT + SOA in prior years are restated as 1,000 877 incentive fee and residential profits are 796 excluded from EBIT + SOA. They are not deemed to be the core business activities for the Group. 500 * Adjusted to exclude non-cash and non- operating items such as unrealised revaluation 0 gains or losses, mark-to-market fair value 11/12 12/13 13/14 14/15 15/167 16/177 17/187 18/197 19/20 20/21 adjustments, gains and losses on foreign exchange, negative goodwill and dilution Financial Year gains and losses and include OIC gains from any gains or losses on disposal and corporate restructuring surplus or deficit. 3 Rising above new challenges REAL ESTATE CAPABILITIES Mapletree’s business model creates value through its core capabilities in real estate development, investment, capital and property management. In Financial Year 2020/2021, the Group continued to broaden its global presence by successfully acquiring and developing data centre, logistics, office, residential and student accommodation assets in Singapore, Australia, China, Europe, India, Japan, South Korea, the United Kingdom and the United States. DEVELOPER INVESTOR CREATING VALUE CAPITALISING ON Leveraging its development expertise, OPPORTUNITIES Mapletree transforms greenfield lands, Mapletree pursues, seizes and underwrites underperforming assets and precincts into new business opportunities across the entire high-value real estate. real estate value chain. Oakwood Suites Yokohama occupies the 46th to 51st floors of The Kitamaka Yokohama Tower, Yokohama’s tallest and largest residential complex. CAPITAL PROPERTY MANAGER MANAGER GROWING THIRD-PARTY STEWARDING ASSETS ASSETS UNDER MANAGEMENT Mapletree provides a suite of quality property management services to its tenants and Employing a disciplined capital management ensures that their operational needs are met. framework, Mapletree delivers consistent and high returns to its investors, as demonstrated by the success of its four real estate investment trusts and five private equity funds. corporate overview Since 2015, Mapletree’s footprint has opportunities. Supporting Mapletree’s expanded beyond Asia to the highly operations are its more than 2,580 Mapletree Investments Pte developed markets of Australia, dedicated employees working from an Ltd (Mapletree) is a leading Europe, the United Kingdom (UK) and extensive network of offices worldwide. the United States (US). The Group also real estate development, has an extensive and well-diversified In Financial Year 2020/2021, Mapletree investment, capital and property range of asset classes, ranging from strengthened its portfolio by acquiring management company. data centre, industrial, lodging, and developing data centre, logistics, logistics, mixed-use, multifamily, office, residential and student Headquartered in Singapore, office, residential and retail assets, accommodation assets in Singapore, Mapletree has a 21-year track located across 13 markets. These Austalia, China, Europe, India, Japan, record of generating strong and diverse income streams have enabled South Korea, the UK and the US. Mapletree’s business to remain resilient As at 31 March 2021, Mapletree stable returns to investors by in the face of challenges such as the has S$66.3 billion of assets under identifying real estate sectors Covid-19 pandemic. management (AUM). Of these, over and geographical markets S$46.5 billion or about 70% are As the Group continues to grow, it held under four of the Group’s with solid growth potential, seeks to maintain an optimal capital Singapore-listed real estate investment investing in high-quality assets structure for the financial muscle and trusts and five private equity real flexibility to pursue new investment estate funds. and proactively managing those assets to maximise yield. AUM BY GEOGRAPHY1 THE UNITED KINGDOM EUROPE INDIA CHINA HONG KONG SAR S$3,603.7m S$3,367.6M S$1,197.4m S$9,231.6m S$7,318.2M NORTH AMERICA SOUTHEAST ASIA SINGAPORE AUSTRALIA SOUTH KOREA JAPAN S$13,764.2m S$2,290.8m S$18,040.5M S$2,447.9M S$1,449.7m S$3,617.2m 6 MAPLETREE INVESTMENTS PTE LTD ANNUAL REPORT 2020/2021 OUR BUSINESS SEGMENTS SINGAPORE-LISTED REITS SOUTH EAST ASIA AND GROUP RETAIL LOGISTICS DEVELOPMENT MAPLETREE LOGISTICS TRUST Developer/investor/manager of Developer/manager of logistics properties Manager of logistics properties in Singapore, commercial properties (and select in Australia, China, India, Malaysia Australia, China, Hong Kong SAR, India, industrial properties) in Singapore and and Vietnam Japan, Malaysia, South Korea and Vietnam properties in Southeast Asia CHINA INDIA MAPLETREE INDUSTRIAL TRUST Developer/investor/manager of properties Developer/investor/manager of properties Manager of industrial properties and in China in India data centres in Singapore and North Capital Management Platform America Private real estate fund: • Mapletree China Opportunity Fund II (MCOF II) AUSTRALIA & NORTH ASIA GROUP LODGING MAPLETREE COMMERCIAL TRUST Developer/investor/manager of Developer/investor/manager of global Manager of office, business park and properties in Australia, Hong Kong SAR, lodging properties in North