Financial Review

INCOME STATEMENT For the financial year ended 31 March (S$ million)

2015 2016 2017 2018 2019 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19 Revenue 1,633.9 1,878.9 2,328.8 3,194.4 3,948.1 Earnings before interest and taxes (EBIT) 1,137.3 1,316.3 1,545.1 1,632.6 2,187.3 Share of profit/(loss) of associated companies and joint ventures (SOA) (operating) 4.1 10.6 30.0 107.9 24.6 EBIT + SOA 1,141.4 1,326.9 1,575.1 1,740.5 2,211.9 Finance cost – net (167.4) (246.2) (331.7) (362.2) (607.8) Income tax expense (124.3) (141.6) (168.9) (204.6) (217.8) Others 42.4 28.7 36.7 27.3 (20.5) Non-controlling interests (418.1) (438.4) (467.6) (509.5) (595.0) Recurring PATMI 474.0 529.4 643.6 691.5 770.8 Asset revaluation gains1 545.9 404.1 662.1 1,136.7 1,149.4 Corporate restructuring surplus and disposal gains2 3.1 8.3 197.6 126.0 429.7 Other gains/(losses) – net3 (19.4) 23.4 (89.6) 4.4 (188.8)

PATMI 1,003.6 965.2 1,413.7 1,958.6 2,161.1

Attributable to: Equity holder of the Company 954.0 915.6 1,349.6 1,873.6 2,088.3 Perpetual securities holders 49.6 49.6 64.1 85.0 72.8 1,003.6 965.2 1,413.7 1,958.6 2,161.1

Operational profit after tax and minority interests (Operational PATMI) 467.6 651.0 1,376.5 764.4 950.1

36 MAPLETREE INVESTMENTS PTE LTD ANNUAL REPORT 2018/2019 BALANCE SHEET As at 31 March (S$ million)

2015 2016 2017 2018 2019 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19 Assets Investment properties: Completed properties 22,453.9 27,567.1 30,386.8 37,296.1 46,762.9 Under redevelopment 704.3 996.5 299.6 126.2 212.7 Properties held for sale 17.2 16.5 41.2 87.5 122.2 Properties under development 1,790.4 1,647.2 1,663.0 409.8 805.0 Property, plant and equipment 9.1 11.3 175.6 165.3 175.2 Assets of disposal group held for sale – – – – 1,697.6 Investments in associated companies and joint ventures 922.4 871.0 1,279.0 1,509.4 1,056.3 Cash and cash equivalents 752.0 1,027.0 1,179.8 1,267.6 1,896.3 Others 554.5 821.4 1,234.2 1,713.1 2,260.6

Total Assets 27,203.8 32,958.0 36,259.2 42,575.0 54,988.8

Liabilities Borrowings/Medium term notes 8,332.3 13,219.3 13,095.5 16,623.4 23,410.2 Current and deferred income tax liabilities 343.7 384.9 422.9 546.2 582.4 Liabilities directly associated with disposal group held for sale – – – – 724.5 Others 1,132.6 1,294.1 1,517.0 1,488.4 1,923.2

Total Liabilities 9,808.6 14,898.3 15,035.4 18,658.0 26,640.3

Net Assets 17,395.2 18,059.7 21,223.8 23,917.0 28,348.5

Shareholder’s funds 9,330.1 9,941.3 11,184.1 12,785.9 14,592.5 Perpetual securities 941.1 941.1 1,817.8 1,760.0 1,760.0 Non-controlling interests 7,124.0 7,177.3 8,221.9 9,371.1 11,996.0

Total Equity 17,395.2 18,059.7 21,223.8 23,917.0 28,348.5

1 Net of tax and non-controlling interests but including share of associated companies’ and joint ventures’ revaluation gains or losses. 2 Net of tax and non-controlling interests but including share of associated companies and joint ventures. 3 Extraordinary gains or losses that were not in the ordinary course of business, net of tax and non-controlling interests.

Financial Review 37 Financial Review

KEY HIGHLIGHTS – FY18/19 area totalling 252,403 square October 2018. The remaining metres (sqm). office building was divested • The Group achieved a record in March 2019. Total gross PATMI of S$2,161.1 million in The Group further grew its divestment proceeds of the current financial year, 10.3% student accommodation JPY143.2 billion (~S$1.7 higher than the previous financial portfolio with an acquisition billion) were generated for year. The profitability of the in the (UK) in the 10 assets. The fund Group was underpinned by strong November 2018. The acquired achieved a significantly high recurring earnings of S$770.8 asset is a 244-bed student net internal rate of return million, a year-on-year (y-o-y) accommodation in Norwich. (IRR) estimated at 27.1%2. growth of 11.5% or S$79.3 million higher than FY17/18. In addition, • The Group continued to expand In June 2018, Mapletree the Group recorded increased its development footprint, Logistics Trust (MLT) investment gains of S$429.7 including the following key co-invested in 11 million and asset revaluation gains development projects: logistics properties owned (net) of S$1,149.4 million. by Mapletree Investments Logistics portfolio in China for RMB1 billion (~S$202.1 • The Group achieved an added 18 new projects and million) via a 50:50 joint operational PATMI of S$950.1 completed four development venture (JV). The transaction million, a y-o-y increase of projects, bringing the total was well-received by MLT 24.3% or S$185.7 million against gross floor area (GFA) to 4.6 investors. FY17/18. The current financial million sqm as at 31 March year benefitted from divestment 2019, an increase of 31% gains measured from the original y-o-y. invested cost (OIC), from the divestment of Mapletree Business In SAR, Mapletree City Shanghai (MBC Shanghai) Bay Point – a Grade A office and VivoCity Shanghai as well building with retail facilities as the syndication of Mapletree and GFA of 61,344 sqm within US & EU Logistics Private Trust the business district, obtained (MUSEL). its occupation permit (OP) in April 2018. The Group • During the year, the Group subsequently entered into broadened its global presence an agreement to divest the with successive acquisitions of property in December 2018. 283 logistics buildings in the The sale transaction was 18 Tai Seng, United States (US) and Europe. completed in May 2019. In March 2019, S$5.8 billion of these assets were syndicated with • Together with its managed real Mapletree Industrial Trust the launch of MUSEL. The fund estate investment trusts (REITs) (MIT) acquired 18 Tai Seng achieved an initial subscription of and private funds, the Group from Mapletree Investments 35.9% and generated gross equity executed a number of win-win for S$268.3 million in proceeds of S$870 million. capital recycling transactions: February 2019. 18 Tai Seng is a unique nine-storey • The following were the Group’s As part of MJOF’s exit, mixed-use development strategic acquisitions during the private fund divested with Business 2 industrial, the year: six Japan office buildings office and retail spaces. to Mapletree North Asia This new addition enhanced In November 2018, the Group Commercial Trust (MNACT)1 in the quality of MIT's portfolio expanded its presence in May 2018 for JPY63.3 billion in Hi-Tech Buildings segment by acquiring Global Infocity (~S$770.6 million) and another and was distribution per Park Chennai, an operational three Japan office buildings unit (DPU) accretive to the IT office park with net lettable to third-party purchasers in investors.

38 MAPLETREE INVESTMENTS PTE LTD ANNUAL REPORT 2018/2019 In addition, the Group’s The proceeds were used for • Asia accounted for 71% of the managed private funds, general corporate purposes. In Group’s AUM in FY18/19. The Mapletree India China Fund addition, MLT, MIT and MNACT Group made a strategic decision (MIC Fund) and Mapletree also raised gross proceeds of to expand beyond Asia into the China Opportunity Fund II S$1.3 billion from the capital new markets of , Europe (MCOF II) completed the market through equity fund and the US five years ago. These divestment of MBC Shanghai raising of S$1.1 billion and new markets now comprise 29% and VivoCity Shanghai in fixed rate medium-term note of Mapletree’s total owned and November 2018, an award- issuance of S$225 million. managed real estate assets, with winning mixed-use property a total AUM of S$16.1 billion as at with seven blocks of Grade A PERFORMANCE OVER FIVE YEARS 31 March 2019. office buildings and a five-storey shopping mall • The Group grew its PATMI in Shanghai. from S$878.2 million in FY13/14 to S$2,161.1 million in FY18/19 The Group’s managed at a CAGR of 19.7% per annum private fund, MJLD, (p.a.). successfully divested three assets to third-party • Growth in asset performance, purchasers. fee businesses, new acquisitions as well as completed • Overall, the Group grew its development projects enabled total real estate assets under recurring PATMI to increase management (AUM) by 20.3% every year over the past five from S$46.3 billion in FY17/18 years from S$381.7 million in to S$55.7 billion as at 31 March FY13/14 to S$770.8 million in 2019. FY18/19.

• The Group delivered a return • Fee income (includes REIT on equity (ROE) of 15.3% and management fees) increased return on invested equity (ROIE) from S$203.2 million in FY13/14 of 10.4% for FY18/19. Total to S$450.7 million in FY18/19 Debt/Total Asset ratio was 44% at a CAGR of 17.2% p.a. as at 31 March 2019 and the Group had ample financial • Five-year average ROE for flexibility with S$11 billion of the Group stood at 12.8% cash and undrawn facilities at while the five-year average the end of the financial year. ROIE was 11%. The Group also extended its debt maturing to 3.8 years. • The Group grew its shareholder’s Assuming the Group had funds by S$6.3 billion over completed the divestment a five-year period to S$14.6 of Mapletree Bay Point on billion as at 31 March 2019. 31 March 2019, ROIE would Net asset value compounded increase to 17.4% and Total annual growth rate (NAV CAGR) Debt/Total Asset ratio would since 31 March 2014 was 1 Formerly known as Mapletree Greater China decrease to 42%. 13.1% p.a. Commercial Trust (MGCCT). Please refer to MNACT’s SGX-ST Announcement dated 25 May 2018 titled “Change of Name of • During the year, Mapletree • Total AUM grew by close to Mapletree Greater China Commercial Trust Treasury Services Limited 2.3 times from S$24.6 billion and the Manager”. had three issuances totalling as at 31 March 2014 to S$55.7 2 After expenses, taxes and base fee but before carried interest. Returns subject to S$750 million with maturities billion as at 31 March 2019. post-closing reconciliation adjustments in ranging from three to 10 years. July 2019.

Financial Review 39 Financial Review

REVENUE

SOURCES OF REVENUE (%)

(S$ million)

3,948.1 4,000 1%

3,600 17%

3,194.4 3,200 1% 5%

2,800 23%

2,328.8 2,400 2% 2% 4%

2,000 1,878.9

5% 77% 1,633.9

1,600 4%

94% 74% 1,200

96% 95% 800

400 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19

Leasing Revenue Fee Income Oakwood Others

In FY18/19, the Group achieved data centres acquired in FY17/18 also total revenue of S$3,948.1 million, contributed to the increase. representing a strong y-o-y growth of 23.6% or a CAGR of 21% over the Leasing revenue from the Group’s last five years. managed REITs – MLT, MIT, Mapletree Commercial Trust (MCT) and MNACT Leasing revenue grew 29% y-o-y continued to post y-o-y growth. mainly driven by new income streams of approximately S$299.1 million The Group recorded fee income of from the acquired Europe and the US S$191.7 million in FY18/19 compared to logistics assets. In addition, revenue S$70.9 million in FY17/18 (fee income from newly completed logistics of REITs’ management companies development projects in China, were eliminated on consolidation). The cruise and ferry operations from significant increase was primarily due Singapore Cruise Centre (SCC), as to incentive fees from MJOF's exit and well as full year revenue from the US MIC Fund entering divestment phase.

40 MAPLETREE INVESTMENTS PTE LTD ANNUAL REPORT 2018/2019 LEASING REVENUE Y-O-Y ANALYSIS MLT’s revenue rose 15% to S$454.3 FY17/18. The revenue growth was largely million for FY18/19, mainly attributed to attributable to new revenue contribution (S$ million) organic growth from existing properties from six Japan commercial properties and acquisitions in Singapore, Australia, acquired from MJOF in May 2018. 3,200 and . 3,039.1 Aside from the REIT leasing revenue 3,000 MIT’s gross revenue for FY18/19 was growth, the Group’s same store 404.8 2,800 S$376.1 million, 4% higher compared assets delivered better performance 29% 2,600 to the corresponding period last year. in leasing revenue from existing 2,357.7 This was mainly due to new revenue projects in Australia, China and the 2,400 contribution from HP Singapore Phase UK. Completion and leasing of China 2,200 2, 18 Tai Seng, Mapletree Sunview 1 and logistics development projects and 2,000 30A Kallang Place, partially offset by Mapletree Bay Point as well as higher lower portfolio occupancy in FY18/19. occupancy in Mapletree Business City II 1,800 2,634.3 (MBC II) also contributed to the leasing 1,600 MCT’s revenue rose 2% to S$443.9 revenue growth. million for FY18/19, mainly due to 1,400 higher rental income from new Revenue from new initiatives was 1,200 and renewed leases in VivoCity and mainly contributed by the acquisitions 1,000 Mapletree Business City I. of logistics portfolio in Europe and the FY17/18 FY18/19 US, as part of the Group’s strategic MNACT’s gross revenue for FY18/19 decision to expand beyond Asia and Same Store New Initiatives was S$408.7 million, 15% higher than into new markets.

fee income (including reit management feeS) y-o-y analysis

Fee Income by Type Fee Income by Business Unit (BU) (S$ million) (S$ million) Mapletree is one of the leading REIT managers in Singapore and 500 the management of REITs is a core 450.7 450.7 1.3 business of the Group. Hence, it is 450 20.6 12.1 meaningful for fee income analysis to 400 141.7 77.9 include REIT management fee income 350 in addition to fees from its private real 302.1 302.1 estate funds and other fee revenue. 300 2.3 10.0 19.7 100.1 12.1 250 16.3 Including REIT management fees, 142.8 40.1 140.5 fee income increased from S$302.1 56.7 200 44.7 million in FY17/18 to S$450.7 million in 150 27.5 54.7 FY18/19, driven by incentive fees from 28.7 54.2 MJOF upon full realisation of the fund 100 67.9 and MIC Fund as the fund entered 138.7 55.7 divestment phase. 50 122.9 57.0 59.4 0 Fee income from MLT and MNACT FY17/18 FY18/19 FY17/18 FY18/19 increased by S$24.2 million y-o-y in FY18/19 arising from MLT’s 50% Base and Performance Fee from REITs MCT Japan Funds interest in 11 logistics properties in Base Fee from Private Real Estate Funds MLT MGSA China and MNACT’s acquisition of six Property and Development Management Fee MIT Oakwood Acquisition and Incentive Fee MNACT Others new Japan commercial properties. China Funds Financial Review 41 Financial Review

EARNINGS PROFILES

PATMI and Operational PATMI

(S$ million)

2,350

2,150

1,950

1,750

1,550 1,149.4 1,136.7 1,350 1,376.5

1,150

662.1 950 950.1 297.9 750 764.4 545.9 404.1 108.0 132.4 651.0

550 37.5 467.6 350 713.8 689.5 523.6 643.6 474.0 150

(16.3) (150) FY14/15 FY15/16 FY16/17 FY17/18 FY18/19

Recurring Core PATMI Investment & Other Gains Asset Revaluation Gains Operational PATMI

In FY18/19, the Group outperformed globally across various major asset the divestment of MBC Shanghai its previous year’s result with a record classes, particularly in Europe and and VivoCity Shanghai, MUSEL PATMI of S$2,161.1 million, representing the US. Asset revaluation gains of syndication and asset realisation a growth of 10.3% y-o-y. The increase S$1,149.4 million were recorded in from MJOF's closure. in PATMI was mainly attributable to FY18/19, marginally increasing by the growth in recurring core PATMI as S$12.7 million from FY17/18. well as higher investments and other gains in FY18/19. The Group achieved Operational PATMI of S$950.1 million in FY18/19, Recurring core PATMI grew by 4% compared to S$764.4 million in from S$689.5 million in FY17/18 to FY17/18. The higher Operational S$713.8 million in FY18/19, driven by PATMI was mainly due to the growth higher recurring earnings and the in recurring core PATMI, higher Group’s efforts to build up its presence gains from OIC resulting from

42 MAPLETREE INVESTMENTS PTE LTD ANNUAL REPORT 2018/2019 PATMI and Asset Revaluation Gains

10Y Cumulative 10Y Cumulative Reval Gains (RG) PATMI

Revaluation Gains – Unrealised Revaluation Gains – Revaluation (Ex-REITs), 14% Unrealised (REITs), Gains – Unrealised Recurring 28% (Ex-REITs), 27% Revaluation PATMI, 40% Gains – Unrealised (REITs), 14%

Revaluation Revaluation Disposal Gains Gains – Realised, Gains – Realised1 above valuation2, 45%1 23% 9%

72% of 10Y 45% of Total RG Cumulative PATMI Realised Realised

While the Group has been taking a On a 10-year cumulative results long-term view on each investment basis, 45% of total revaluation gains and development project, we may were realised. Of the remaining 55%, divest certain assets to third parties unrealised gains in REITs’ assets or recycle to Mapletree’s REITs or and Mapletree Investments’ assets private funds, when commercial constituted 28% and 27% respectively. circumstances arise. This enabled the Group to improve the gearing and free Recurring PATMI, disposal gains up capital for re-investments. Upon above valuation and realised divestment, these assets’ revaluation revaluation amounted to 72% of the gains were realised as cash proceeds Group’s 10-year cumulative PATMI. and recognised in subsequent years as OIC gain in Operational PATMI.

1 Includes Mapletree Bay Point. 2 Valuation as at financial year-end preceding the disposal.

Financial Review 43 Financial Review

EBIT + SOA Y-O-Y GROWTH ANALYSIS BY BUSINESS UNIT (BU)

(S$ million)

114.0 39.8 218.1 6.2 2,211.9 2,200 50.1 31.3 13.7 (1.8) 1,740.5 1,800 1,338.4 1,400 1,224.4 1,000 84.0

403.6 600 77.8 185.5 101.2 151.3 90.8 89.0 200 33.7 47.4 150.3 181.6 (123.2) (83.4) (200) FY17/18 FY18/19

SG Investments Logistics Development China and India ANAO EUSA South East Asia Singapore-listed REITs Others*

The Group recorded higher EBIT + SOA and recorded sale of residential units. South East Asia BU recorded higher from S$1,740.5 million in FY17/18 to Divestment of MBC Shanghai and EBIT + SOA by S$6.2 million mainly S$2,211.9 million in FY18/19, contributed VivoCity Shanghai in November 2018 due to the commencement of serviced mainly from active lease management also contributed to loss of income for apartment, Oakwood Residence and cost containment of the portfolio, both China Funds, while partially offset Saigon in April 2018, sales of residential as well as new income streams by incentive fee income earned by the units in RichLane Residences as well as from acquired logistics properties fund manager from the divestment. stronger operational performance of in Europe and the US, US data the Vietnam market. centres, SCC, and newly completed Australia-New Zealand, North Asia development projects in China. and Oakwood (ANAO) BU recorded REITs recorded higher EBIT + SOA higher EBIT + SOA by S$50.1 million as by S$114 million, mainly contributed Singapore Investments business unit Mapletree Bay Point, in Hong Kong SAR, from MLT, MIT and MNACT. Stronger (BU) recorded a higher EBIT + SOA by obtained its occupation permit in April performance from MLT was due to S$31.3 million over FY17/18 mainly due 2018, and the recognition of incentive new acquisition of logistics properties to new income stream from SCC and fee was recognised upon the closure in Singapore, Australia and South higher leasing income from MBC II with of MJOF. The higher earnings were Korea as well as new contribution a higher occupancy rate achieved. partially offset by lower contribution from the completed redevelopment from MJOF due to recycling of six of Mapletree Ouluo Logistics Park Logistics Development BU reported commercial properties to MNACT in (MOLP) Phase 1. Higher EBIT + SOA an increase by S$13.7 million, largely May 2018. contribution from MNACT was attributable to new income stream primarily due to the new earnings from newly completed development Europe and USA (EUSA) BU achieved contribution from the six Japan projects in China. higher EBIT + SOA by S$218.1 million commercial properties acquired from primarily from FY18/19 acquisitions of MJOF in May 2018. China and India BU recorded a lower logistic properties in Europe and the US, EBIT + SOA by S$1.8 million, with lower and full year contributions from FY17/18 Data centres in the US posted an contribution from MCOF II compared acquisitions of student accommodation increase of S$51.9 million, attributable to FY17/18 when Nanhai Business and office commercial buildings in the to the full year income contribution in City Phase 4 achieved completion US and the UK. the current financial year.

44 MAPLETREE INVESTMENTS PTE LTD ANNUAL REPORT 2018/2019 EARNINGS RATIO

ROE (%) and ROIE (%)

S$13.7b 25 S$12.0b

S$10.6b 20 18.7 S$9.6b S$8.8b 15.7 15.3

15 12.8 5-year Average 5-year 10.4 9.6 ROE 9.7 Average 10 12.8% ROIE 7.3 10.8 11.0% 8.7 5

0 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19

Average Shareholder's Funds ROE ROIE

ROE decreased marginally from dilution gain or loss and fair 15.7% in FY17/18 to 15.3% in value adjustments for financial FY18/19, mainly due to higher derivatives and available-for-sale average shareholder’s funds in financial assets. FY18/19, partially offset by higher PATMI. The Group delivered to its shareholder ROIE of 10.4% in ROE for a real estate company FY18/19, higher than the ROIE of includes gains or losses from 8.7% in FY17/18. This was driven revaluation of investment by higher recurring earnings and properties, when can be significant, divestment gain from OIC of MBC in accordance with Singapore Shanghai and VivoCity Shanghai, Financial Reporting Standards recycling of Europe and the US (International) 1-40 Investment logistics properties into MUSEL Property. From an operational and closure of MJOF. Assuming measurement point of view, the the Group had completed the Group also considers ROIE as one divestment of Mapletree Bay Point of its performance measurement on 31 March 2019, ROIE would metrics. This ratio captures increase to 17.4%. operating returns of the Group for the amount invested by its shareholders in the underlying businesses adjusted for the effect of non-operating and non-cash flow items, such as unrealised * Includes EBIT of the US data centres investment properties revaluation which are jointly-controlled by Mapletree gains and losses, negative goodwill, Investments and MIT.

Financial Review 45 Financial Review

TOTAL ASSET BASE AND SHAREHOLDER’S FUNDS

TOTAL ASSET BASE

(S$ million)

54,989 55,000

6,152 50,000 1,056 1,018 45,000 42,575

3,234 40,000 1,509 36,259 536 35,000 32,958 2,630 1,279 1,876 1,963 871 30,000 2,644 46,763 27,204 1,333 922 25,000 2,495 37,296

20,000 27,567 30,387 22,454 15,000

10,000 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19

Investment Properties – Completed Investments in Associated Companies and Joint Ventures Investment Properties – Under Redevelopment and Properties Under Development Others

Total assets grew from S$42,575 acquisitions of new investment million in FY17/18 to S$54,989 properties in Singapore, Europe, India, million in FY18/19, primarily due Japan and the US, valuation uplift of to an increase of S$9.5 billion in the overall portfolio and completion Investment Properties – Completed. of properties under construction. The increase was attributable to

46 MAPLETREE INVESTMENTS PTE LTD ANNUAL REPORT 2018/2019 SHAREHOLDER’S FUNDS

(S$ billion)

16.0

14.0 14.6

12.0 12.8 11.2 10.0 9.9 9.3 8.0 8.3

6.0

4.0

2.0

0 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19

Over the years, the Group continued Strong underlying businesses, increase The Group’s PATMI of S$2,161.1 to seek quality and yield-accretive in real estate valuation and capital million in FY18/19 contributed to a investment opportunities that management platforms underpinned 14% increase in shareholder’s funds deliver long-term value across returns and generated considerable from S$12.8 billion for FY17/18 to different asset classes, and execute value to the shareholder’s funds over S$14.6 billion for FY18/19. well on its development projects. the past few years.

THIRD-PARTY ASSETS UNDER MANAGEMENT (AUM) BY SEGMENT (%)

6% Third-party AUM grew by $6.6 billion 9% 15% from S$31.1 billion in FY17/18 to S$37.7 19% 22% billion in FY18/19. The increase was mainly due to capital uplifts of the 8% 5% REITs’ portfolio, MLT's acquisitions 3% in various countries, MNACT's FY17/18 FY18/19 acquisitions of the six Japan assets 4% S$31.1b S$37.7b from MJOF as well as successful syndication of MUSEL in March 2019. 20% 21% 21% This was partially offset by fund 20% closure of MJOF in March 2019 and divestment of MBC Shanghai and VivoCity Shanghai by the China Funds. 14% 13%

MCT MLT MIT MNACT China Funds Japan Funds MGSA MUSEL

Financial Review 47 Financial Review

TOTAL REAL ESTATE ASSET BASE

(S$ billion)

60 55.7

50 46.3 39.5 40 34.7 68% 28.4 67% 30 71% 66% 20 72% 10 33% 32% 28% 34% 29% 0 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19

Owned Assets Third-party AUM

The Group continued to achieve in FY17/18 to S$55.7 billion in FY18/19 uplift of the REITs’ portfolio and the significant growth in its real estate mainly due to increased acquisitions Group’s owned assets including AUM in the last five years with the in Europe and the US (largely logistics MBC II in Singapore and Mapletree growth of CAGR at 17.8%. Total properties), Australia and India. Bay Point in Hong Kong SAR, owned and managed real estate Positive value contributions from contributed to the growth in AUM. assets increased from S$46.3 billion development activities, capital value

TOTAL OWNED AND MANAGED REAL ESTATE ASSETS BY BU (%)

(S$ billion)

60 55.7 3% 50 46.3 23% 39.5 3% 15% 40 34.7 3% 10% 2% 10% 28.4 1% 6% 14% 5% 30 2% 10% 12% 6% 4% 1% 9% 7% 4% 6% 5% 6% 5% 7% 20 9% 8% 5% 13% 15% 49% 10 62% 54% 55% 51%

0 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19

REITs SG Investments Logistics Development China and India ANAO EUSA South East Asia Others

In line with the Group’s strategy to growth and accounted for 23% of The decrease in the AUM of ANAO BU grow new income streams beyond AUM as at 31 March 2019, to become was due to the closure of MJOF. Asia, EUSA BU has accelerated its the largest BU by AUM of the Group.

48 MAPLETREE INVESTMENTS PTE LTD ANNUAL REPORT 2018/2019 TOTAL OWNED AND MANAGED REAL ESTATE ASSETS BY ASSET CLASS (%)

Concurrently, acquisitions in Europe 2% 2% 1% 2% 1% and the US lifted the Group’s Logistics 9% portfolio to 31% of AUM, as the 22% Group’s largest asset class. Retail 31% 26% 16% portfolio, on the other hand, reduced from 26% of AUM in FY14/15 to 16% in FY18/19. FY14/15 FY18/19 S$28.4b S$55.7b 13% 2%

8% 23% 8% 26% 8%

Mixed-Use Logistics Data Centres Industrial Business Parks Office Retail Lodging Others

TOTAL OWNED AND MANAGED REAL ESTATE ASSETS BY COUNTRY (%)

(S$ billion) 55.7

50 17% 46.3 3% 11% 39.5 9% 40 3% 4% 7% 34.7 2% 3% 6% 6% 2% 7% 7% 6% 6% 9% 30 28.4 5% 1% 8% 9% 11% 6% 13% 7% 15% 14% 15% 16% 20 17% 19% 22% 20%

31% 10 49% 42% 38% 34%

0 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19

Singapore Hong Kong SAR China Japan Rest of Asia Europe Australia United States

To date, the Group owns and the UK and the US, mainly in the US accounted for 29% of the Group’s manages real estate assets corporate lodging, logistics and total AUM as compared to 21% a across 12 markets. During the office sectors. Mapletree’s total year ago. Regardless, Singapore year, the Group further boosted owned and managed real estate remains predominant, with the largest its presence in Europe, India, assets in Australia, Europe and the proportion of assets at 31%.

Financial Review 49 Financial Review

Glossary

EBIT + SOA Earnings before interest and tax (EBIT) plus share of operating profit or loss of associated companies and joint ventures (SOA), excluding revaluation gains or losses, divestment gains or losses, foreign exchange and derivatives gains or losses.

NAV CAGR NAV CAGR is adjusted for dividends distributed to shareholder and calculated excluding non-controlling interests and perpetual securities and with NAV as at 31 March 2014 as starting base.

New Initiatives New initiatives relate to acquisitions and developments completed in FY18/19.

Operational PATMI Operational PATMI denotes net income derived from the underlying operating activities of the Group including, inter-alia, real estate leasing and sales activities, capital management fee income businesses, investments in real estate related assets and/or securities, and corporate restructuring surplus or deficit. Any gains or losses on disposal and corporate restructuring surplus or deficit are measured based on the relevant OIC. Gains or losses on foreign exchange, fair value adjustments for financial derivatives and financial assets available-for-sale (per SFRS(I) 1-39 Financial Instruments: Recognition and Measurement), unrealised gains or losses, inter-alia, pure revaluation gains or losses, negative goodwill and dilution gains or losses are not included.

PATMI PATMI denotes net profit after tax and non-controlling interests attributable to Perpetual Securities Holders and Equity Holder of the Company.

Recurring Core PATMI Recurring Core PATMI is derived from Recurring PATMI less incentive fees and residential profit.

ROE ROE denotes return on equity and is computed based on PATMI attributable to equity holder of the Company over shareholder’s funds.

ROIE ROIE is computed based on Operational PATMI (less profit attributable to perpetual securities) over the Group’s equity from shareholder adjusted for unrealised revaluation gains or losses and such other non-cash flow and non-operating items including mark- to-market fair value adjustments and negative goodwill.

50 MAPLETREE INVESTMENTS PTE LTD ANNUAL REPORT 2018/2019