Mapletree's full-year earnings rise by 39%

Mapletree Business City II (right) and 18 Tai Seng achieved committed occupancies of around 85 per cent as at March 31, which contributed to Mapletree Investment's rise in full-year earnings.
Mapletree Business City II (right) and 18 Tai Seng achieved committed occupancies of around 85 per cent as at March 31, which contributed to Mapletree Investment's rise in full-year earnings.LIANHE ZAOBAO FILE PHOTO

Returns boosted in part by asset growth, leasing, Reit performance

Mapletree Investments lifted full-year earnings by 39 per cent to $1.96 billion, it announced yesterday.

Revenue for the 12 months to March 31 rose 37 per cent to $3.19 billion. The firm also recorded a higher return on equity of 15.7 per cent compared with a year earlier.

Assets under management (AUM) grew 17 per cent to $46.3 billion, underpinned by its deeper penetration into markets such as Australia, the United States and Britain.

Chief executive Hiew Yoon Khong said: "These figures are testament to the group's business model working towards delivering a sustainable high margin real estate business.

"We are happy to note that there are clear and positive signs that we have elevated our ability to deliver a high rate of profitability going forward three to five years."

Aside from the recurring stream of earnings from its underlying operations, returns were also driven by several other factors.

The first was continued momentum in student accommodation acquisitions in the US and Britain, as well as in office and data centres in the US and Australia. These markets accounted for $9.6 billion or 21 per cent of Mapletree's total AUM.

The second is progress in development projects and leasing of newly developed properties. The group completed eight logistics assets in China to meet the increasing demands of e-commerce and third-party logistics operators.

  • 17% Growth of assets under management, underpinned by Mapletree Investments' deeper penetration into markets such as Australia, the United States and Britain.

In Singapore, Mapletree Business City II and 18 Tai Seng had achieved committed occupancies of around 85 per cent as at March 31.

And sustained contributions from Mapletree's four managed real estate investment trusts (Reits) and six private real estate funds also helped boost earnings.

The four Reits have performed strongly and delivered distribution per unit growth to investors. The Reits and six private funds had a combined AUM of around $31 billion as at March 31.

Mr Hiew said that Mapletree Investments will expand its capital management business by structuring new private fund products for investors.

On the investment front, the group is focused on seeding logistics platforms in the US and Europe. It expects to make significant progress over the next 12 months.

A version of this article appeared in the print edition of The Straits Times on June 01, 2018, with the headline 'Mapletree's full-year earnings rise by 39%'. Print Edition | Subscribe