Mapletree Investments' FY21 net profit grows 4% to $1.85b

Revenue fell 29.4 per cent year on year to $2.74 billion. ST PHOTO: KUA CHEE SIONG

SINGAPORE (THE BUSINESS TIMES) - Property developer and manager Mapletree Investments on Wednesday posted a net profit of $1.85 billion for the financial year ended March 31, a 4 per cent increase from the previous year. It said that this was underpinned by significant investments in global logistics and data centres.

The resilient performance underscored the strong focus on operations and capital recycling efforts, with $3.1 billion in capital recycled, complemented by revaluation gains, it added.

In FY2020, the property giant had seen a net profit of $1.78 billion, down 18 per cent from the preceding year, on lower asset revaluation and disposal gains.

The group manages four real estate investment trusts listed on the Singapore Exchange, namely Mapletree Logistics Trust, Mapletree Industrial Trust (MIT) Mapletree Commercial Trust and Mapletree North Asia Commercial Trust.

This year's net profit figure includes a one-off accounting gain from the deconsolidation of Mapletree Industrial Trust (MIT). If excluded, Mapletree recorded a net profit of S$1.02 billion for FY2021.

Revenue fell 29.4 per cent year on year to S$2.74 billion, in part because of the accounting treatment from the deconsolidation of MIT and the weaker performance of Mapletree's retail and lodging assets, the group said.

Return on invested equity was at 8.6 per cent, compared to 21.6 per cent last year.

However, its assets under management increased 9.6 per cent to S$66.3 billion, boosted by cost containment measures.

Mr Hiew Yoon Khong, Mapletree group chief executive officer, said that Mapletree has continued to deploy a significant amount of capital into the logistics and data centre sectors, which have outperformed other asset classes during the pandemic period.

To achieve its five-year plan targets, Mapletree's strategy is to focus on managing and improving its assets' operating performances; sourcing, investing and developing assets that will deliver attractive and consistent returns; and strengthening its financial position by prudent capital management, which will include monetisation of assets through syndication efforts, Mr Hiew said.

In FY21, the group syndicated its first European office fund in March, which raised €507 million (S$813 million).

Mapletree expanded its office portfolio with acquisitions in North America, South Korea and the Netherlands for around $1.8 billion. It also made acquisitions in India, China, Japan, Australia and Hong Kong across logistics, residential and data sectors. The total investment amounted to $3.7 billion, including development.

The purchase of three warehouses in India was Mapletree's maiden entry into the country's logistics sector. The land acquired in Japan will house Kyushu's largest logistics warehouse upon its completion in 2024. The land plot in Hong Kong will be developed into the group's first data centre in the city.

As at March 31, Mapletree's total funds under management was about $26 billion, a 10.6 per cent increase on-year.

"Mapletree continues to receive strong interest from investors for our private funds which deliver good long-term investment performance. Going forward, the group will continue to assess investors' appetite and market demand and aim to launch new funds across various markets and asset classes," Mr Hiew said.

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