ESR管理的一系列基金和投資公司，涵蓋處於不同發展階段的多 元化優質不動產，為資本合作夥伴提供單一連接平台及多種的投 資機會。 新經濟開發 ESR Group Limited 股份代號：1821 (於開曼群島註冊成立的有限公司) 2024年年報 ESR（「ESR」或「本集團」）集團是亞太地區領先的新經濟不動產所有者及管理者。本集 團以物流地產、數據中心和基礎設施為核心業務，為投資者、客戶及社區構建供應鏈賦 能平台。通過一體化的不動產基金管理和開發平台，ESR致力於為全球投資者創造價值與 增長機遇。本集團在澳大利亞及新西蘭、日本、韓國、大中華區、東南亞和印度以及歐洲為 客戶提供現代化空間解決方案，助力實現其發展宏圖。秉持「面向可持續未來的空間和投資 方案」的使命，ESR通過可持續且富有影響力的管理方式，致力於推動所服務社區的世代繁榮。 ESR Group Limited 於香港聯交所上市（股份代號：1821.HK）。 詳情請瀏覽www.esr.com 。 基金管理 ESR的新經濟開發平台具有全面的技術能力及服務，涵蓋物業開 發週期的每個階段，包括選地、設計、建築施工和租賃。 投資 ESR的投資包括共同投資的基金 ...

Financial Performance - ESR Group Limited reported total revenue of $638.987 million for the fiscal year 2024, a decrease of 26.7% compared to $871.326 million in 2023[5]. - The company recorded a net loss of $726.310 million in 2024, a significant decline from a profit of $268.056 million in 2023, representing a 371.0% change[5]. - The adjusted EBITDA for 2024 was a loss of $79.624 million, down 109.0% from an EBITDA of $885.331 million in 2023[5]. - The group's revenue decreased by 26.7% from $871.3 million in FY2023 to $639 million in FY2024, primarily due to lower management fees, which fell by 32.4% from $736.7 million to $497.8 million[28]. - EBITDA dropped from a profit of $724.6 million in FY2023 to a loss of $415.6 million in FY2024, representing a decline of 157.4%[31]. - PATMI decreased from a profit of $230.8 million in FY2023 to a loss of $699.8 million in FY2024, a reduction of 403.1%[31]. - The company reported a net loss attributable to equity holders of $(699,810,000) in 2024 compared to a profit of $230,849,000 in 2023, marking a significant decline[88]. - Basic loss per share was $(0.17) in 2024, down from earnings of $0.05 per share in 2023[88]. Asset Management and Fundraising - The total assets under management related to management fee income reached $71.4 billion as of December 31, 2024, with a total building area of 46.5 million square meters[7]. - ESR secured $5.4 billion in fundraising despite a challenging capital-raising environment, with capital raised across Australia, Korea, Japan, mainland China, and Singapore[11]. - The core asset management fee income continued to grow, contributing over 75% to the total revenue, despite a decrease in fund management EBITDA due to the absence of performance fees in 2024[14]. - ESR Group recorded fund management revenue of $498 million for the fiscal year 2024, with a year-on-year growth of approximately 6.6% in recurring core asset management fee income despite market challenges[15]. - Total fundraising for the fiscal year 2024 reached $5.4 billion, with new economy fundraising performing strongly at $4.2 billion, a year-on-year increase of 53%[17]. Operational Developments - ESR is developing a $2 billion data center project in Osaka, Japan, with a total capacity of 130 megawatts, highlighting its commitment to operational execution[13]. - The occupancy rate of new economy assets was maintained at 87% as of December 31, 2024, with a weighted average lease expiry of approximately 4.4 years by income and 3.8 years by area[18]. - The group recorded approximately 8 million square meters of lease renewals and new leases during the fiscal year 2024, an increase compared to the fiscal year 2023, with a weighted average rental growth rate of approximately 12.6%[18]. - The total amount of projects commenced and completed in the fiscal year 2024 was $1.8 billion and $3.6 billion, respectively, with 23% of the commenced projects being data center projects[20]. Financial Position and Liabilities - Total assets decreased from $16.2 billion as of December 31, 2023, to $14.8 billion as of December 31, 2024, a reduction of 8.6%[36]. - The group's total equity decreased from $8.7 billion as of December 31, 2023, to $7.5 billion as of December 31, 2024, primarily due to an annual net loss of $726.3 million and unrealized currency translation losses[42]. - The company's total assets decreased to $14,822,964,000 in 2024 from $16,191,075,000 in 2023, reflecting a reduction of 8.5%[54]. - The debt-to-asset ratio increased to 35.3% in 2024 from 30.7% in 2023, indicating a higher level of leverage[54]. - The net debt increased to $5,234,343,000 in 2024 from $4,977,985,000 in 2023, an increase of 5.2%[54]. - The company's total liabilities decreased from $7,206,324 thousand in 2023 to $6,371,324 thousand in 2024, a reduction of approximately 11.6%[60]. - Total bank loans and borrowings slightly increased to $6.1 billion as of December 31, 2024, from $6.0 billion as of December 31, 2023, mainly due to delayed collection of capital cycle transaction proceeds[40]. Strategic Initiatives and Governance - The group aims to leverage its logistics real estate, data centers, and infrastructure platforms to capture the next phase of growth amid a challenging economic outlook[25]. - The group has made significant progress on its ESG 2030 development blueprint, with a female representation rate of approximately 47% in the workforce for the fiscal year 2024, an increase of 1% year-on-year[22]. - The company completed the proposed spin-off of logistics assets through a publicly offered infrastructure securities investment fund, which is set to list on the Shanghai Stock Exchange[44]. - The company has adopted corporate governance practices in line with the applicable code provisions throughout the fiscal year ending December 31, 2024[110]. - The board of directors includes both executive and non-executive members, ensuring diverse governance[117].

Financial Overview - ESR Group Limited manages assets totaling $154 billion, with a management fee-related asset scale of $80 billion[5]. - The company reported a fundraising amount of $2.3 billion in the first half of 2024, representing a year-on-year increase of 155%[6]. - ESR Group Limited's total revenue for the first half of 2024 was $312 million, with over 80% of this revenue coming from the fund management segment[14]. - The company's management fee income for the first half of 2024 was $254 million, reflecting a year-on-year decrease of 5.0% primarily due to slower project development in Japan and Korea[19]. - The company reported a net loss of $209 million for the first half of 2024, compared to a net profit of $313.9 million in the same period of 2023, primarily due to non-cash asset value revaluation and lack of incentive fees[29]. - Revenue decreased by 31.4% from $455.4 million in the first half of 2023 to $312.5 million in the first half of 2024, mainly due to lower management fees, which fell by 37.0% from $402.9 million to $253.7 million[30]. - The company reported a total of $1,021,823,000 in bank loans due within one year as of June 30, 2024, compared to $832,817,000 as of December 31, 2023, an increase of approximately 22.7%[184]. Asset Management and Development - The total construction area managed by ESR is 50 million square meters[5]. - ESR's total assets under management include contributions from joint ventures and leverage assumptions on unpaid capital commitments[6]. - The company has a robust development pipeline with $13.1 billion in ongoing projects, targeting a development profit margin of 33.5%[9]. - The company has completed the construction of the Osaka COSMOSQUARE OS1 data center (100 MW), which is set to commence operations in May 2025[8]. - The company has identified land and project reserves exceeding 2.375 gigawatts, with a projected compound annual growth rate of approximately 20% for data center capacity in the Asia-Pacific region by 2028[7]. - The company has completed land clearing for the Mumbai RABALE MU1 data center (35 MW) and the Seoul BUPYEONG KR1 data center (80 MW), both fully pre-leased[8]. - The company is focused on enhancing its asset management scale and developing reserves to support EBITDA growth in the new economy sector[7]. Financial Performance and Ratios - The total asset value reported is $16.199 billion, with a net debt of $3.69 billion, resulting in a debt-to-asset ratio of 22.8%[10]. - The company’s debt-to-asset ratio was 32.3% as of June 30, 2024, expected to decrease to approximately 30% after the completion of the ARA private fund sale and the official listing of the logistics REIT[1]. - The weighted average cost of debt decreased from 5.6% in the first half of 2023 to 4.9% in the first half of 2024, with a potential annual interest expense reduction of approximately $50 million if rates drop by 100 basis points[1]. - The company plans to repay $2.5 billion of debt maturing in the second half of 2024 through a committed $2.5 billion sustainable loan arrangement, with an option to increase to $3 billion[1]. - The company’s construction revenue increased from $12.6 million in the first half of 2023 to $20.6 million in the first half of 2024, reflecting ongoing project execution[31]. Shareholder Structure and Governance - As of June 30, 2024, major shareholders include Warburg Pincus & Co. with a stake of 591,440,160 shares, representing 14.04% ownership[51]. - The ownership structure indicates a significant concentration of shares among a few key stakeholders, particularly Warburg Pincus entities[51]. - The company has granted performance share units to executives, with a maximum of 421,365 shares potentially vesting based on performance metrics[48]. - The company has established performance-based vesting conditions for restricted share units, which will vest over four years[54]. - The company has a significant shareholder structure, with multiple entities holding over 5% of the total shares, including The Capital Group Companies, Inc. with 6.09%[53]. Market and Economic Conditions - The total area leased in mainland China exceeded 2.5 million square meters in the first half of 2024, despite ongoing macroeconomic pressures[14]. - ESR's property portfolio occupancy rate was 87% overall and 94% for its overseas properties[9]. - The company maintains a cautious approach towards new development projects and land acquisitions[25]. - The company is leveraging its competitive advantages in ESG and its track record in the Asia-Pacific region to drive growth and innovation in data center solutions[8]. Future Outlook and Strategic Initiatives - The company aims to simplify its business by divesting non-core assets worth $750 million to prepare for growth in logistics, data centers, infrastructure, and renewable energy platforms[7]. - The company plans to sell $1.2 billion in assets and an additional $1.5 to $2 billion in the next 12 to 18 months to optimize its balance sheet, targeting a debt-to-asset ratio between 20% and 30%[7]. - The company has raised over $1 billion for its infrastructure platform, focusing on strategic industries benefiting from decarbonization and digitalization[18]. - The company aims to achieve 100% renewable energy usage in its data center assets by 2040, with a mid-term target of 75% by 2030[1]. - The company has plans for market expansion and new product development in the upcoming quarters[124].

Financial Performance - Total revenue for the first half of 2024 was $312.468 million, a decrease of 31.4% compared to $455.407 million in the first half of 2023[3] - Fund management EBITDA for the first half of 2024 was $173.897 million, down 47.1% from $328.698 million in the same period last year[3] - The company reported a net loss of $208.968 million for the first half of 2024, compared to a profit of $313.870 million in the first half of 2023, representing a decline of 166.6%[3] - Adjusted EBITDA for the first half of 2024 was $131.949 million, a decrease of 76.0% from $549.729 million in the previous year[3] - Fund management revenue for the first half of 2024 was $254 million, with a 5.0% year-over-year decline primarily due to slower project development in Japan and Korea[9] - EBITDA decreased from $537.4 million in H1 2023 to a loss of $22.2 million in H1 2024, representing a decline of 104.1%[18] - PATMI fell from a profit of $289 million in H1 2023 to a loss of $218.7 million in H1 2024, a decrease of 175.7%[18] - Other income and net gains dropped from $214.8 million in H1 2023 to $8.4 million in H1 2024[18] - The group reported a net loss attributable to equity holders of $218,719,000 for the six months ended June 30, 2024, compared to a profit of $288,965,000 for the same period in 2023[61] Asset Management and Development - The company managed assets with a total management fee-related asset scale of $80.3 billion as of June 30, 2024, with a compound annual growth rate of 52% over three years[6] - The company recorded over 2.5 million square meters in lease renewals and new leases in China during the first half of 2024[6] - The company recorded approximately 3.9 million square meters of lease renewals and new leases in the first half of 2024, an 86% increase year-over-year[10] - ESR's development projects have grown nearly fourfold since its IPO, reaching approximately $13.1 billion as of June 30, 2024[11] - 34% of the development projects initiated in the first half of 2024 were focused on data centers[10] Debt and Financial Position - The debt-to-asset ratio increased to 32.3% in the first half of 2024, up from 30.7% in the same period of 2023, reflecting a 1.6 percentage point increase year-on-year[3] - The group's debt-to-equity ratio was 32.3% as of June 30, 2024, with a weighted average interest cost reduced from 5.6% in the first half of 2023 to 4.9%[12] - The group plans to repay $2.5 billion of debt maturing in the second half of 2024 through committed sustainable development loans, with an option to increase to $3 billion[12] - The group aims to reduce its debt-to-equity ratio to a low of 20% to 30%[12] - Total bank loans and borrowings increased to $6.2 billion as of June 30, 2024, from $6.0 billion as of December 31, 2023[24] - The company’s total liabilities as of June 30, 2024, were $6.191 billion, compared to $5.980 billion as of December 31, 2023, reflecting a growth of 3.5%[67] Revenue Sources and Trends - In the Greater China region, revenue was $87.746 million, an increase of 8.0% compared to $81.227 million in the previous year[3] - Construction revenue increased from $12.6 million in the first half of 2023 to $20.6 million in the first half of 2024, reflecting ongoing project execution[16] - Rental income decreased by 4.6% from $36.7 million in the first half of 2023 to $35 million in the first half of 2024, primarily due to asset sales[16] - The company experienced a decline in revenue from Japan, which fell to $27,511,000 in the first half of 2024 from $46,545,000 in the same period of 2023, a decrease of 41.0%[52] Cash Flow and Expenditures - Operating cash flow before tax showed a loss of $188.955 million for the six months ended June 30, 2024, compared to a profit of $372.631 million in the same period of 2023[42] - The net cash flow from operating activities was $163.121 million, a significant increase from $21.942 million in the previous year[43] - The company incurred $170.008 million in capital expenditures for investment properties, a decrease from $180.938 million in the same period last year[43] - The financing activities generated a net cash inflow of $157.994 million, compared to $10.697 million in the same period last year[44] Fair Value and Asset Revaluation - Fair value losses from joint ventures and associates amounted to approximately $44.6 million due to asset revaluation in Cromwell Property Group[19] - A revaluation loss of $60 million was recorded for three Chinese assets related to the proposed spin-off into a REIT[20] - The fair value loss on completed investment properties was $(60,615,000) for the first half of 2024, compared to a gain of $3,908,000 in the same period of 2023[56] Corporate Actions and Governance - The company completed the acquisition of the remaining 13.6% equity in LOGOS Property Group Limited, making it a wholly-owned subsidiary as of August 13, 2024[26] - The board decided not to recommend an interim dividend for the six months ended June 30, 2024, while a final dividend for the fiscal year ending December 31, 2024, will be considered[68] - The audit committee confirmed compliance with applicable accounting principles and standards for the six months ended June 30, 2024[74] - The mid-term financial report for the six months ending June 30, 2024, will be published on the Hong Kong Stock Exchange and the company's website[76]

Assets Under Management - As of December 31, 2023, ESR's assets under management related to management fee income reached $81 billion[2]. - Total assets under management amounted to $156 billion, including contributions from joint ventures[7]. - Assets under management related to management fee income grew by 6.3% to approximately $81 billion, while total assets under management increased by 7.3% to about $156 billion[27]. - ESR Group Limited's assets under management reached approximately $81 billion as of December 31, 2023, with management fee income contributing about 95% from major Asia-Pacific markets[48]. Management Fee Income - ESR Group Limited reported a management fee income of $713 million for the fiscal year 2023, representing a year-on-year increase of 3.3% and a compound annual growth rate of 57% over three years[22]. - The management fee income related to long-term core and permanent investment companies exceeded 60%, driven by the establishment of listed real estate investment trusts and new permanent core investment companies[49]. - Fund management fee income has grown at a compound annual growth rate of 57% since 2020[27]. - Management fees rose by 3.3% from $713.3 million in FY2022 to $736.7 million in FY2023, attributed to the growth in assets under management[68]. Financial Performance - Total revenue increased by 6% from $821 million in fiscal year 2022 to $871 million in fiscal year 2023[25]. - EBITDA decreased by 23.1% year-on-year to $885 million, while PATMI fell by 38.8% to $400 million[25]. - The group reported a significant increase in user engagement, with a 40% year-over-year growth in active users[112]. - Revenue for the fiscal year reached $1.2 billion, representing a 25% increase compared to the previous year[114]. Investment Strategy - ESR's investment strategy includes joint investment funds, real estate investment trusts, and investments in both completed and ongoing projects[2]. - The company aims to allocate an additional $1.5 to $2 billion in assets and investments primarily located in mainland China, Hong Kong, Japan, and India, available for divestment and asset sales[13]. - The integration of ESR and LOGOS into a single business platform is expected to create additional revenue opportunities and cost savings[13]. - The company is focusing on high-return core businesses, particularly in logistics and data centers, while also expanding into emerging growth sectors such as life sciences and infrastructure[14]. Sustainability and Environmental Commitment - ESR is committed to achieving carbon neutrality and improving the future environment as part of its core mission[3]. - The company is committed to sustainable development, having been recognized as an outstanding green and sustainable loan issuer in Hong Kong[12]. - The group has installed a total of 112 MW of rooftop solar power and 809 electric vehicle charging stations as part of its commitment to sustainability[35]. - ESR has begun climate scenario analysis and climate-related risk assessments to identify and manage climate-related risks and opportunities in its property portfolio[96]. Development and Construction - The group has a development pipeline of over 24.5 million square meters, including approximately 7 million square meters of large-scale land reserves for future development, supporting future management fees and development profits[33]. - The group commenced construction projects worth $6.3 billion and completed projects worth $4.2 billion during the year, with only 2% of new projects located in mainland China due to a slowdown in new developments[34]. - Data center projects accounted for 24% of the group's new development starts, with the first phase of the $1.35 billion ESR data center fund contributing a capacity of 575 MW[34]. - The company is developing significant projects, including a $4.2 billion intermodal logistics hub in Australia and a $1.5 billion multi-phase logistics park in Japan[34]. Corporate Governance and Leadership - The board includes experienced executives with over 28 years in real estate development and investment, enhancing operational oversight[108]. - The company has a commitment to innovation and sustainable growth, as emphasized by Kannan's leadership approach[111]. - The board is responsible for establishing the overall risk strategy and governance framework, ensuring adequate resources for risk management[134]. - The company has adopted high corporate governance standards, complying with all provisions of the corporate governance code as of December 31, 2023[146]. Diversity, Equity, and Inclusion - The company emphasizes the importance of diversity, equity, and inclusion in its workplace culture[3]. - The group achieved a 45.4% female representation in its workforce and maintained a zero employee fatality rate, receiving ISO 45001 certification for occupational health and safety[83]. - The company continues to promote diversity, equity, and inclusion (DEI) initiatives, establishing a DEI committee in Europe to enhance recruitment processes[92]. - The board is committed to maintaining a strong representation of women on the board and will continue to seek suitable candidates over time[164]. Risk Management - The company employs a comprehensive risk review process to identify and prioritize key risks across the organization, ensuring alignment with business objectives[139]. - The risk management framework is designed to identify, assess, monitor, and report risks, ensuring alignment with business objectives and strategies[133]. - The company has established strict internal policies to prevent insider trading and conflicts of interest, including a whistleblowing policy[169]. - The board conducted an annual review of the effectiveness of the group's risk management and internal control systems, confirming their adequacy without any significant concerns raised[171]. Shareholder Engagement and Communication - The company emphasizes strong and sustainable relationships with stakeholders, aiming for effective two-way communication with shareholders, investors, analysts, and the public[122]. - The company has established a shareholder communication policy to facilitate ongoing dialogue between the board, senior management, and the investment community[177]. - The company maintains high standards of information disclosure, regularly holding financial performance briefings and discussions to explain its strategy and business performance[124]. - ESR Group actively engages with stakeholders through various investor activities, including nine major investment bank conferences in 2023[123].

Financial Performance - ESR Group Limited reported a revenue of $871.3 million for the fiscal year 2023, representing a 6.1% increase from $821.2 million in 2022[2]. - The company's EBITDA for 2023 was $724.6 million, down 32.2% from $1.1 billion in 2022, while adjusted EBITDA decreased by 23.1% to $885.3 million[2]. - The annual profit for 2023 was $268.1 million, a significant decline of 57.5% compared to $631.1 million in 2022[2]. - The group's revenue increased by 6.1% from $821.2 million in FY2022 to $871.3 million in FY2023, primarily driven by an increase in management fees[18]. - Management fees rose from $713.3 million in FY2022 to $736.7 million in FY2023, reflecting an increase in the asset management scale[18]. - EBITDA decreased by 32.2% from $1.0685 billion in FY2022 to $724.6 million in FY2023, mainly due to a decline in fair value gains and the absence of one-time sale gains from FY2022[19]. - PATMI fell by 59.8% from $574.1 million in FY2022 to $230.8 million in FY2023, impacted by increased interest expenses and lower fair value gains[19]. - The company reported a pre-tax profit of $394,238 thousand for 2023, down 51.7% from $815,125 thousand in 2022[32]. - Basic earnings per share for 2023 is $0.05, a decrease of 61.5% from $0.13 in 2022[32]. Assets and Liabilities - The total assets under management increased by 7.3% year-on-year to $156 billion, with management fee-related assets growing by 6.3% to $81 billion[6]. - The debt-to-asset ratio increased to 30.7% in 2023 from 22.8% in 2022, reflecting a 7.9 percentage point rise[2]. - The asset-to-liability ratio was reported at 30.7% as of December 31, 2023, with expectations to reduce it to a target range of 20% to 30% in the medium term[13]. - Total liabilities increased to $6 billion as of December 31, 2023, from $5.5 billion in the previous year, with net debt rising to $5 billion[23]. - Total equity decreased to $8.7 billion as of December 31, 2023, from $9.1 billion, impacted by a net unrealized loss of $86.3 million on financial assets[24]. - The company reported a total of $5,979,553,000 in bank loans and other borrowings as of December 31, 2023, compared to $5,496,630,000 in 2022, an increase of 8.8%[61]. Capital Management - The company raised $7.5 billion in capital during the fiscal year, including the establishment of its largest RMB income fund in China[8]. - The company has a significant amount of capital available for investment, totaling $23.9 billion, with over $13.5 billion focused on new economy sectors[8]. - The group has $23.9 billion in capital awaiting deployment, with over $13 billion allocated to new economy sectors, and management is cautiously optimistic about deploying this capital in the second half of 2024[16]. - The company plans to refinance part of its existing debt with long-term fixed-rate debt to achieve a more balanced debt composition[17]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.125 per share, equivalent to approximately USD 0.016 per share, representing a yield of 2.9%[7]. - The company reported a total of $69,886,000 in dividends paid to shareholders in 2023, an increase from $70,777,000 in 2022, representing a growth of 96.9%[38]. - The company proposed a final dividend of HK$0.125 per share for the year ended December 31, 2023, totaling approximately HK$527 million, a decrease from HK$550 million in 2022[64]. Operational Highlights - The overall occupancy rate for new economy assets remained above 91%, with a weighted average lease expiry (WALE) of 4.6 years[11]. - The rental growth rate for new economy assets reached approximately 8.2%, with Australia and Korea experiencing the highest growth at around 19.5%[11]. - Approximately 90% of the ongoing development projects are expected to be completed between FY2024 and FY2027, significantly expanding future management fee income sources[12]. - The group has installed 110 MW of rooftop solar power capacity and over 850 electric vehicle charging stations in its property portfolio by the end of 2023[14]. Strategic Initiatives - ESR Group plans to complete asset sales valued at over $500 million and aims for additional transactions worth $1.5 to $2 billion in the next 12 months[9]. - The group identified the sale of non-core assets worth up to $750 million, with the sale of the ARA private equity fund business being a significant milestone[10]. - The integration of LOGOS is expected to create further synergies in the Asia-Pacific new economy platform, projected to yield additional benefits in FY2024 and FY2025[10]. Market and Economic Conditions - The company anticipates continued high occupancy rates and rental growth in key markets such as Australia, Japan, and South Korea, despite a slowdown in leasing activity[16]. - Financing costs increased by 40.7% from $222.4 million in FY2022 to $312.9 million in FY2023, attributed to additional borrowings for project transitions[19].

Core Insights - ESR's stock has increased by over 4%, currently trading at 10.56 HKD with a transaction volume of 106 million HKD [1] - APG, a Dutch pension fund management company, has committed over 400 million AUD to the ESR Korea Logistics Core Fund, which is a continuation of nearly a decade-long partnership with ESR and the Canada Pension Plan Investment Board [1] - There are reports that some of ESR's largest investors are considering potential advisors regarding the privatization of the company, with initial interest from buyers in the company or its key assets [1]

Financial Performance - Adjusted EBITDA for the first half of 2023 was $670 million, representing an 18% increase compared to the same period in 2022[6]. - Total revenue for the first half of 2023 rose by 5.5% to $455.4 million, driven primarily by an increase in management fees[24]. - The net profit for the period was $313.9 million, down from $419.7 million in the previous year, indicating a decline of 25.2%[103]. - The company reported a decrease in other income and gains, totaling $214.8 million, compared to $290.3 million in the prior year, a drop of 26%[103]. - The company reported a total comprehensive income of $133.3 million for the period, compared to a loss of $38.1 million in the previous year, indicating a significant turnaround[103]. - The company reported a profit attributable to equity holders of $288,965,000, down from $380,607,000 for the same period in 2022, representing a decrease of approximately 24.2%[140]. Asset Management and Investments - The total assets under management reached approximately $1,470 billion, with a significant portion in the Asia-Pacific region[10]. - ESR Group's total assets under management increased by 9% year-on-year to $147 billion, driven by a 13% growth in new economy assets under management to $69 billion[15]. - The total amount of capital available for investment was $78 billion, with $19.3 billion in uncalled capital[8]. - The company has $13 billion in ongoing development projects, with $3.8 billion in projects under construction and $2.2 billion in projects completed[9]. - The company raised USD 2 billion in new capital this year, with approximately 80% focused on new economy sectors[16]. Leasing and Occupancy - The company reported a strong leasing momentum with a rental growth of 10.4% and an occupancy rate of 92% for properties outside of China[8]. - The property portfolio's occupancy rate was nearly full at 98% for the overall portfolio[8]. - ESR's overall leasing rate was 92% in the first half of 2023, with a strong demand for modern logistics space driven by e-commerce, accounting for 72% of new leases[17]. - The weighted average lease expiry (WALE) is currently 4.7 years, with 29% of leases expiring in the next 18 months, positioning the company to benefit from rental growth[17]. Dividends and Shareholder Returns - A mid-term dividend of HKD 0.125 per share (approximately USD 0.016) was declared, amounting to about $70 million[5]. - The board proposed an interim dividend of HKD 0.125 per share, equivalent to approximately USD 0.016, representing a yield of 2.2% and totaling around USD 70 million, to be distributed on September 29, 2023[16]. - The company declared a final dividend of 12.5 HKD cents per share for the fiscal year ended December 31, 2022, totaling approximately $69,886,000, compared to zero in 2021[137]. Financial Position and Liquidity - The company maintains a strong balance sheet with a debt-to-equity ratio of 27.6% and USD 3 billion in cash liquidity, sufficient to cover total loan repayments for the next three years[19]. - The company has a cash balance of $1.1 billion, which is part of its active capital management strategy[28]. - The net debt to total asset ratio decreased from 27.6% to 25.9% following asset sales announced after June 30, 2023[24]. - The company has USD 19.3 billion in available capital for new investments, with two-thirds allocated to new economy sectors[19]. Market Expansion and Strategic Initiatives - The company aims to expand its footprint in Europe and the United States, leveraging its integrated development and investment management platform[10]. - The firm is actively assessing opportunities in new markets through selective acquisitions and partnerships with local top-tier companies[14]. - The company is focused on strategic exploration and entry into related businesses within the Asian region, utilizing its ecosystem of shareholders, capital partners, local teams, and tenants[14]. Sustainability and Corporate Governance - The group completed seven sustainability-related loans totaling approximately $4 billion as of August 2023, enhancing its leadership in sustainable financing[22]. - The company has adhered to the corporate governance code and principles as outlined in the listing rules during the six months ending June 30, 2023[87]. Employee Stock Ownership and Compensation - The company has established various employee stock option plans to align the interests of board members and employees with those of shareholders[46]. - The total remuneration for key management personnel amounted to $6,285,000 for the six months ended June 30, 2023, up from $5,279,000 in the same period of 2022[190]. - The employee stock option plan is intended to incentivize, reward, and retain key members of the management team[198]. Financial Reporting and Compliance - The company has implemented new accounting standards effective January 1, 2023, which are expected to impact annual financial statement disclosures but have no significant effect on the interim financial data[118]. - The company does not anticipate any significant impact from the revised International Accounting Standards on its financial position or performance[119].

Financial Performance - Revenue for the first half of 2023 was $455.4 million, representing a year-on-year increase of 5.5% compared to $431.7 million in the first half of 2022[2]. - The net profit for the first half of 2023 was $313.9 million, a decrease of 25.2% from $419.7 million in the same period last year[2]. - The adjusted PATMI for the first half of 2023 was $288.9 million, down 24.1% from $380.6 million in the first half of 2022[2]. - The company reported a pre-tax profit of $372.6 million for the first half of 2023, down 28.3% from $519.5 million in the first half of 2022[33]. - Basic and diluted earnings per share for the first half of 2023 were both $0.06, compared to $0.08 in the same period of 2022[33]. - The company reported a profit attributable to owners of the company of $288,965,000 for the six months ended June 30, 2023, down from $380,607,000 in 2022, indicating a decrease of 24.2%[58]. Asset Management - Total assets under management as of June 30, 2023, reached $147.4 billion, reflecting a year-on-year growth of 9%[4][6]. - The company has $19.3 billion available for new investments, with two-thirds allocated to new economy sectors[8]. - The company recorded a fair value gain of $115.3 million on investment properties in the first half of 2023, down from $162.9 million in the same period of 2022[20]. - The company’s total assets as of June 30, 2023, were $16.32 billion, with a debt-to-asset ratio of 27.6%[32]. Cash Flow and Liquidity - The company reported a cash balance of $1.13 billion, a decrease of 37.7% from $1.81 billion at the end of 2022[2]. - The company has $3 billion in cash and undrawn financing, sufficient to cover its loan repayments for the next three years without further capital recycling or asset sales[18]. - The company’s cash flow from operating activities before tax profit was $372,631 thousand, down from $519,486 thousand in the same period last year[38]. - The total cash and cash equivalents at the end of the period were $1,065,877 thousand, down from $1,952,437 thousand at the end of the same period in 2022[41]. Debt and Financing - The debt-to-asset ratio increased to 27.6% as of June 30, 2023, compared to 22.8% in the previous year, indicating a 4.8 percentage point rise[2]. - The company incurred $25,442 thousand in acquisition costs for subsidiaries, compared to $44,146 thousand in the previous year, indicating a reduction in acquisition activity[39]. - The company repaid $199,695,000 in bank loans due within one year as of June 30, 2023, compared to $149,126,000 in the previous year[65]. - The company issued ¥30 billion in fixed-rate notes in June 2023, with 90% of total debt refinanced as of June 30, 2023[23]. Dividends and Share Repurchases - The company plans to distribute an interim dividend of HKD 0.125 per share, equivalent to approximately USD 0.016 per share, representing a yield of 2.2%[7]. - The board declared an interim dividend of HK$0.125 per share for the fiscal year ending December 31, 2023, totaling approximately HK$547 million, slightly down from HK$556 million in 2022[66]. - The company repurchased a total of 38,824,400 shares at a cost of approximately HK$531 million (about $68 million) during the six months ended June 30, 2023[68]. Operational Highlights - ESR leased 2.1 million square meters of space in the first half of 2023, with a weighted average rent increase of over 10%, positioning the group to potentially break 2022 records[9]. - The overall occupancy rate for ESR was 92% in the first half of 2023, with a 98% occupancy rate outside of China, driven by strong demand in key markets[10]. - ESR's development projects reached a record $3.8 billion in the first half of 2023, a 9% year-on-year increase, with a total of $13 billion in ongoing projects, the largest in the Asia-Pacific region[10]. Sustainability and Future Goals - The company is committed to achieving a total renewable energy generation target of 1,000 MW by 2030, with plans to significantly increase on-site renewable energy generation this year[17]. - Approximately 39% of the company's completed directly managed assets have received sustainability certifications such as LEED, WELL, and NABERS[17]. Management and Governance - The audit committee confirmed compliance with applicable accounting principles and standards for the interim financial results for the six months ended June 30, 2023[74]. - The company’s external auditor, Ernst & Young, reviewed the interim financial statements and confirmed consistency with the reported figures[75]. - The board of directors includes executive directors Shen Jinchao and Stuart Gibson, along with several non-executive and independent non-executive directors[78].

Financial Performance - The company's revenue for the fiscal year 2022 was $821 million, a 103.0% increase from $404 million in fiscal year 2021[70]. - EBITDA rose from $707 million in fiscal year 2021 to $1.15 billion in fiscal year 2022, representing a 63.0% increase[70]. - PATMI increased by 73.5%, from $377 million in fiscal year 2021 to $655 million in fiscal year 2022[70]. - The company reported an adjusted PATMI of $655 million and an adjusted EBITDA of $1.152 billion for the fiscal year 2022[105]. - The company maintained a strong balance sheet with $1.8 billion in cash and a solid debt-to-asset ratio of 22.8%[78]. - The company has a cash balance of $1.8 billion and a net debt of $3.69 billion, with a net debt to total assets ratio of 22.8%[113]. Assets Under Management - Total assets under management reached $156 billion, with a strong liquidity position of $1.8 billion[20]. - ESR Group has a total assets under management (AUM) of over $156 billion, making it the largest real estate management company in the Asia-Pacific region[33]. - The total assets under management reached $156 billion, covering major Asia-Pacific markets and expanding into Europe and the United States[62]. - ESR's assets under management in Greater China amount to $33 billion, while Japan's AUM stands at $34 billion[34]. - Total assets under management reached $156 billion, with new economy assets at $73 billion[137]. Development Projects - The company initiated record new development projects with a total value of $6.5 billion[23]. - The company announced a record development project scale of $11.9 billion, the largest in the Asia-Pacific region[77]. - Development project starts increased by 94% year-on-year to $6.5 billion, while project completions surged by 304% to $5.5 billion[77]. - The company has a robust development project reserve of 27.8 million square meters, including a land reserve of over 6.4 million square meters[185]. - The company’s ongoing development projects are the largest in the Asia-Pacific region, with a total of $11.9 billion in value[185]. Sustainability and ESG Initiatives - The company is committed to sustainable development practices, having signed the UN-supported Principles for Responsible Investment (UN PRI) in June 2022[29]. - The company has raised approximately $3 billion in sustainability performance-linked loans to date[30]. - As of December 2022, ESR managed completed properties with a total area of approximately 11 million square meters that have received sustainability building certifications[30]. - The company aims to achieve sustainable building certification for 50% of its property portfolio to enhance operational efficiency[98]. - The company has installed nearly 100 megawatts of rooftop solar power capacity across its global properties as part of its ESG 2025 development blueprint[98]. Market Position and Strategy - The company continues to expand its market leadership with the largest development project scale in the Asia-Pacific region[22]. - The company aims to leverage its integrated development and investment management platform to capture significant market opportunities in the Asia-Pacific region[65]. - The strategy includes expanding the fund management platform to attract new capital partners and selectively acquiring properties in high-growth markets[65]. - The company is focused on three growth pillars: new economy, alternative investments (including infrastructure and renewable energy), and real estate investment trusts[70]. - The company has established a unique global real estate integrated closed-loop solution ecosystem to enhance its investment offerings[62]. Leasing and Occupancy - The company maintained a near-zero vacancy rate in its new economic property portfolio[22]. - The logistics property portfolio achieved a record leasing performance of 4.6 million square meters, with a stable property portfolio occupancy rate of 95%[153]. - The average rental growth for the company's new economy property portfolio was 7.5% due to high occupancy rates in many markets[93]. - E-commerce and third-party logistics companies account for 64% of the rental income in the property portfolio for the fiscal year 2022[157]. - The rental occupancy rate of the property portfolio stands at 95% overall, with specific regions like Japan and South Korea reaching 99%[161]. Capital Raising and Financial Strategy - The company successfully raised $7.6 billion in committed capital through 28 new or expanded funds[76]. - The group raised a record $7.6 billion in capital during the fiscal year 2022, with 85% focused on new economy sectors[171]. - The average co-investment equity was reduced to 7.4%, enhancing the group's development capacity and return on equity[176]. - The company is leveraging third-party capital to fund development properties, employing a strict light-asset strategy to achieve project completion[182]. - The company has a record $19.9 billion in uncalled capital available for investment opportunities[172]. Integration and Synergies - A total of $1.5 million in cost synergies was achieved through the integration of ARA[26]. - The company achieved approximately $15 million in cost synergies from the integration of ARA, exceeding initial targets, and plans to further integrate LOGOS business within the next 12 months[83]. - The company successfully integrated ARA Asset Management and LOGOS, demonstrating resilience and scale in its business foundation[200]. Governance and Diversity - The company’s independent non-executive directors are now 60% female, reflecting its commitment to diversity in governance[85]. - The company has increased the proportion of women in senior management positions to 40% to create a more inclusive workplace[98]. Future Outlook - The company is well-positioned to capitalize on market opportunities despite geopolitical uncertainties and inflation, supported by a strong balance sheet[86]. - The company plans to construct five data center projects in the Asia-Pacific region in 2023, including locations in Osaka and Seoul[136]. - The company anticipates the completion of major projects in the short term, including facilities in Japan and South Korea[183].