- Return on Equity1 (“ROE”) of 15.7% and Return on Invested Equity2(“ROIE”) of 8.7 %
- Total Owned and Managed Assets under Management (“AUM”) increased to S$46.3 billion
- Recurring PATMI3 up 6% year-on-year to S$685 million
SINGAPORE – Mapletree Investments Pte Ltd (“Mapletree” or “the Group”) is pleased to deliver another record PATMI of S$1,959 million for the financial year ended 31 March 2018 (“FY17/18”), an increase of 39% year-on-year.
Overall revenue and recurring PATMI for the Group rose to S$3,194 million and S$685 million respectively, representing a year-on-year increase of 37% and 6% respectively. Further, backed by strong recurring earnings, revaluation and investments and other gains, we are heartened to record a higher ROE of 15.7% as compared to a year ago.
Mapletree’s FY17/18 AUM grew by 17% to S$46.3 billion from S$39.5 billion in FY16/17, underpinned by the Group’s deeper penetration into markets such as Australia, the United States (“US”) and the United Kingdom (“UK”).
Mr Hiew Yoon Khong, Mapletree Group Chief Executive Officer said, “With another financial year to go before we complete our second Five-Year Plan4, we are on track to meet our key performance targets with our Net Asset Value cumulative average growth rate5 (“NAV CAGR”) since 1 April 2014 at 12.6%, and our four-year average ROIE at 11.1%. 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 3 to 5 years.”
Aside from the recurring stream of earnings from its underlying operations, these positive results were driven, in part, by earnings from (see Additional Information below for a detailed list):
- Continued momentum in student accommodation acquisitions in the US and UK, as well as in office and data centres in the US and Australia. These markets accounted for S$9.6 billion or 21% of Mapletree’s total AUM.
- Progress in development projects and leasing of newly developed properties. The Group completed eight logistics assets, with a total gross floor area (“GFA”) of 666,000 square metres in China to meet the increasing demands of e-commerce and third-party logistics operators. In Singapore, Mapletree Business City II and 18 Tai Seng, which secured a strong and diversified tenant mix, have achieved committed occupancies of approximately 86% and 84% respectively as at 31 March 2018.
- Sustained contributions from Mapletree’s four managed REITs and six private real estate funds. The Group’s four REITs have performed strongly and delivered distribution per unit (“DPU”) growth to their investors. As at 31 March 2018, its four REITs and six private funds have a combined AUM of over S$31 billion.
Mr Hiew added, “Through these various earnings platforms, the Group continues to deliver sustainable earnings and generate returns to its stakeholders. Mapletree is committed to growing its businesses and strengthening its operations. We will also expand our capital management business by structuring suitable new private fund products for investors. On the investment front, the Group is currently focused on seeding logistics platforms in the US and Europe. We expect to make significant progress over the next 12 months.”
The Group kicked off the new financial year ending 31 March 2019 with MJOF’s divestment of six freehold office assets to Mapletree Greater Commercial Trust6 (“MGCCT”) in May 2018 for JPY 63,304 (~S$779 million). In the same month, the Group announced a 50:50 joint venture (“JV”) in 11 China logistics projects with Mapletree Logistics Trust.
Additional Information:
More details about earnings platforms:
Australia, the US and the UK
As at 31 March 2018, Mapletree’s total student housing portfolio consists of 45 assets with 19,653 beds located across 34 cities in the US, Canada and the UK, including assets held by its sponsored Mapletree Global Student Accommodation Private Trust (“MGSA P-Trust”).
Mapletree acquired another portfolio of eight quality student accommodation assets in the US and Canada as well as four multi-family assets in May 2017. These student housing assets are located within an average of 0.2 miles (~0.3 kilometres) to the respective universities and have strong occupancy of more than 90% presently. In January 2018, evo at Cira Centre South, an 850-bed asset in Philadelphia, Pennsylvania, US, was added to the portfolio.
In the UK, Mapletree acquired The Maltings at Colchester, a 779-bed student accommodation asset in July 2017.
To capitalise on the growing data centre sector, the Group and Mapletree Industrial Trust (“MIT”) entered into a 60:40 JV to invest in a portfolio of 14 data centres in the US in December 2017.
The Group expanded its portfolio in Australia with the acquisition of two Grade A office buildings. 417 St Kilda Road in Melbourne, with a net lettable area (“NLA”) of 20,135 sqm, was acquired in June 2017 while 11 Waymouth Street in Adelaide, with an NLA of 30,997 sqm, was subsequently acquired in March 2018. With these two additions, Mapletree now owns eight office assets in Australia.
Asia
In FY17/18, key milestones in Asia were:
Mapletree completed the development and opened a retail mall, VivoCity Shanghai, in May 2017. The five-storey mall which spans a total GFA of 120,000 sqm houses more than 280 shops and features brands which made their first appearances in Shanghai.
The Group completed its first office development in Hong Kong SAR, Mapletree Bay Point, located near Kwun Tong in March 2018 and received its Temporary Occupation Permit on 12 April 2018. Occupying a GFA of 660,000 square feet, Mapletree Bay Point is an award winning 19-storey Grade A low-carbon green office building incorporated with environmentally sustainable features.
In Singapore, MIT completed its largest build-to-suit development for Hewlett-Packard Singapore at 1 and 1A Depot Close in June 2017. Comprising two Hi-Tech buildings, it is MIT’s first redevelopment project of a Flatted Factory Cluster into a purpose-built facility.
In Vietnam, Mapletree rebranded Kumho Asiana Plaza in Ho Chi Minh City to mPlaza Saigon in August 2017 as part of the Group’s plan to rejuvenate the property since we acquired it in 2016.
Footnotes
1ROE denotes return on equity and is computed based on PATMI attributable to equity holders of the Company over shareholder’s funds.
2ROIE denotes return on invested equity and 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.
3PATMI denotes net profit (after tax and non-controlling interests) attributable to perpetual securities holders and Equity Holder of the Company.
4The Group embarked on its second Five-Year Plan in FY14/15 with an aim to deliver stronger and more sustainable returns by the end of FY18/19.
5NAV 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.
6Upon completion of the Proposed Acquisition on 25 May 2018, Mapletree Greater China Commercial Trust (MGCCT) was renamed Mapletree North Asia Commercial Trust (MNACT) and Mapletree Greater China Commercial Trust Management Ltd, the Manager, was renamed Mapletree North Asia Commercial Trust Management Ltd.
