Mapletree posts record $1.4b full-year earnings

Mapletree Logistics Hub Tsing Yi in Hong Kong is one of the properties the group completed developing last year. Mapletree has also ventured into new asset classes, like Singapore's first student housing-focused trust, secured in March.
Mapletree Logistics Hub Tsing Yi in Hong Kong is one of the properties the group completed developing last year. Mapletree has also ventured into new asset classes, like Singapore's first student housing-focused trust, secured in March.PHOTO: MAPLETREE

Stellar showing helped it book a return on equity of 12.8 per cent, up from 9.6 per cent a year earlier

Temasek Holdings-owned Mapletree Investments saw net profit jump 46.5 per cent last year to hit a record high of $1.41 billion.

The stellar showing was backed by strong recurring earnings, investment and other gains, including revaluation gains.

Those factors helped the group book a return on equity of 12.8 per cent, up from 9.6 per cent a year earlier, Mapletree said yesterday.

Its return on invested equity was 18.7 per cent, a far better result than the 8.7 per cent a year earlier.

Revenue for the fiscal year ended March 31 rose 23.9 per cent to $2.33 billion, while recurring net profit jumped 21.6 per cent to $643.6 million.

The higher turnover was driven by the group's acquisitions in Vietnam, the United States, Britain and Australia, as well as the completion of properties previously under development, such as Mapletree Business City II in Singapore and Mapletree Logistics Hub Tsing Yi in Hong Kong. Contributions from its four managed real estate investment trusts (Reits) in Singapore also helped.

"While we have grown in scale over the years, we have remained focused on maintaining consistency in our earnings," Mapletree group chief executive Hiew Yoon Khong noted.

  • 46.5% Mapletree Investments' net profit increase last year.

    $2.3b Revenue for fiscal year ended March 31.

"To seek continued growth, we have gradually expanded from an Asia-centric company to a global company with presence in 12 economies since financial year 2014/15," he said. The group has assets across Singapore, Australia, China, Germany, Hong Kong, India, Japan, Malaysia, South Korea, Britain, US and Vietnam.

Mr Hiew added that the group has also ventured into new asset classes, namely student housing, corporate housing and serviced apartments in recent years. In March, for example, Mapletree successfully closed Singapore's first student housing-focused trust, Mapletree Global Student Accommodation Private Trust, securing US$535 million (S$740 million) in equity.

"This strategy has paid off with strong recurring earnings accounting for 45.5 per cent of our total profits this year, allowing us to achieve our highest profitability yet," he said.

Mapletree owns and manages $39.5 billion of office, retail, logistics, industrial, residential, corporate housing and serviced apartment, and student housing properties as at March 31.

The group's assets in new markets - Europe, the US and Australia - continued to grow, accounting for 14.2 per cent, or $5.6 billion, of its total assets under management. These markets contributed to 13.5 per cent of the group's earnings before interest and tax plus share of operating profit or loss of associated companies and joint ventures, while the Singapore-based properties remained the main contributor at 51.9 per cent.

A version of this article appeared in the print edition of The Straits Times on June 01, 2017, with the headline 'Mapletree posts record $1.4b full-year earnings'. Print Edition | Subscribe