Message from the chairman - MR EDMUND CHENG - Mapletree
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
message from
the chairman
MR EDMUND CHENG
8 MAPLETREE INVESTMENTS PTE LTD ANNUAL REPORT 2020/2021
“
MAPLETREE REMAINS RESILIENT IN THE FACE OF
CHALLENGES AND ADVERSITY. THE GLOBAL ECONOMY
IS GRADUALLY RECOVERING AND THE ROLLOUT OF
COVID-19 VACCINES BRINGS IMMENSE HOPE.
HOWEVER, NEW VARIANTS OF THE VIRUS ARE A STARK
REMINDER THAT COVID-19 CONTINUES TO BE A SERIOUS
THREAT TO OUR COMMUNITIES AND ECONOMIES.
”
When I penned my message for At the same time, the Group made a Closer to home in Asia, Mapletree and
Financial Year 2019/2020 (FY19/20), significant number of acquisitions that Mapletree North Asia Commercial Trust
Covid-19 had just emerged across strengthened its portfolio. The Group’s (MNACT) completed the acquisition
Asia and its repercussions on our office asset class was enhanced by the of a Grade A freehold office building
lives, economies and financial markets addition of properties in South Korea, in South Korea for KRW452 billion
were unclear. 12 months on, it has the Netherlands and the United States (~S$535.1 million). Known as The
transformed the way we live and work. (US) at a total transaction value of Pinnacle Gangnam, the 20-storey asset
approximately S$1.8 billion. with six underground floors is located in
The pandemic has left its mark across the Gangnam business district.
the globe. At Mapletree, Covid-19 In the US, Mapletree acquired 11
impacted our business, stakeholders, office buildings in Raleigh, North These acquisitions grew the Group’s
tenants and staff. Nonetheless, we Carolina; Uptown Station in Oakland, AUM for the office asset class by 2%
demonstrated resilience and delivered California; and Galatyn Commons, compared to a year ago.
a strong performance in FY20/21. a four-building office portfolio in
Richardson, Texas. These acquisitions In terms of development projects,
The Group recorded S$1,849.9 million broadened Mapletree’s exposure in Mapletree advanced in the Japan
for its profit after tax and minority the US commercial market with a total logistics and Hong Kong SAR data
interests (PATMI)1 in FY20/21, an investment value of US$1 billion centre markets. In November 2020, the
increase of 4% year-on-year (y-o-y). (~S$1.3 billion). In Europe, the Group acquired a 116,431-square metre
Total owned and managed assets Group made inroads into the Dutch (sqm) plot of prime land in Chikushino,
under management (AUM) also grew commercial office market by acquiring Fukuoka prefecture, Japan. The land
to S$66.3 billion, a rise of 9.7% from a six office buildings at Papendorp Park parcel will be transformed into two
year ago. Due to the deconsolidation of in Utrecht for EUR147 million blocks of multi-storey logistics facilities
Mapletree Industrial Trust (MIT) and the (~S$236 million). with total investment amounting to
syndication of private funds, the Group
witnessed a 29.4% y-o-y decrease
in revenue2 to S$2,735.9 million.
Mapletree’s EBIT + SOA3 decreased
by 19.3% from a year ago to S$1,862.9
million, and the return on equity (ROE)4
edged lower to 10.6% in FY20/21.
Mapletree’s strategic business model
has enabled the Group to broaden its
presence in higher-earning asset classes
and take on a more cautious approach
in weaker sectors. Logistics and data
centre asset classes, which comprise
more than a third of Mapletree’s overall
AUM, saw higher than pre-pandemic
occupancy rates as more people turned
to e-retailers and companies adopted
remote working arrangements. Mapletree marked its first foray into the Dutch commercial office market with the acquisition of six office
buildings at Papendorp Park in Utrecht, the Netherlands.
9
message from
the chairman
Meanwhile, MIT secured a
S$300 million sustainability-linked
facility for general working capital and
corporate funding purposes. MCT
also secured S$370 million of green
loan facilities in FY20/21 to refinance
loans for its properties that have been
certified BCA Green Mark GoldPLUS
or better. MNACT obtained two
green loan facilities amounting to
HK$1.2 billion (~S$207.3 million)
for loans relating to Festival Walk in
Hong Kong SAR.
CONTINUING CORPORATE SOCIAL
RESPONSIBILITY SUPPORT
U N D E R T H E “ N E W N O R M A L”
Mapletree acquired a 116,431-sqm plot of prime land in Chikushino, Fukuoka prefecture, Japan to build two Mapletree continues to commit to the
blocks of multi-storey logistics facilities that will be the largest logistics warehouse space in the Kyushu region. community by setting aside S$1 million
for every S$500 million of PATMI to
fund its Corporate Social Responsibility
over S$550 million. Upon completion, As a capital manager, Mapletree (CSR) programmes. In FY20/21,
it will be the largest logistics warehouse successfully concluded its first Mapletree committed approximately
space in the Kyushu region. European office fund at the end of S$3.7 million to such causes.
March 2021. The fund comprises seven
In February 2021, Mapletree acquired Grade A office properties across seven During the Singapore Government-
an approximately 4,000-sqm industrial major cities in the United Kingdom (UK) mandated “circuit breaker” period,
site at Fanling, Sheung Shui Town in and Europe, totalling approximately the Group offered financial relief and
New Territories, Hong Kong SAR, for 270,000 sqm in GFA at a total asset support schemes for its staff, tenants
HK$813 million (~S$140.4 million) to value of EUR1.2 billion (~S$1.9 billion). and the communities it operates
develop the Group’s first data centre in Notwithstanding the global pandemic, in, despite the unusually difficult
the market. The facility, which will have Mapletree Europe Income Trust (MERIT) circumstances.
a maximum gross floor area (GFA) of – the Group’s 11th private equity fund
20,140 sqm, can be leased to an – attracted strong investor interest For one, Mapletree established a
end-user or a data centre operator and closed favourably, raising community sharing fund that pooled
upon completion in 2023. EUR507 million (~S$812.9 million) in voluntary contributions from local staff.
total fund equity. These were distributed to employees of
On the residential front, the Group tenants and service providers working
launched luxury condominium The I am heartened to note that in this at Mapletree properties who had to
Reef at King’s Dock in the heart of financial year, all four of the Group’s take no-pay leave during the “circuit
the Greater Southern Waterfront, real estate investment trusts – breaker”. This was on top of the
Singapore. From its launch in January Mapletree Logistics Trust (MLT), MIT, S$223 million Covid-19 rental rebates
2021 to 31 March 2021, 80% of the Mapletree Commercial Trust (MCT) and that Mapletree swiftly provided to
429 units were sold – a testament to its MNACT – made strides towards a more affected tenants.
strong appeal among home buyers and sustainable future.
investors. The Reef at King’s Dock will The Group also committed S$85,000
also feature Singapore’s first floating MLT secured a S$200 million loan and launched Mapletree Arts in the City
deck in a residential development. to install at least eight rooftop solar on Air, a series of digital performances
panels at its properties in Singapore. adapted from the quarterly lunchtime
10 MAPLETREE INVESTMENTS PTE LTD ANNUAL REPORT 2020/2021
performances held at Mapletree 30 trainees, M-TRAIN seeks to impart vodcast. Supported by Mapletree,
Business City in Singapore before the relevant real estate knowledge and the challenge provided about 750
pandemic. Apart from showcasing skills through both work and study. SIT students with a platform to pitch
artists in Singapore, the series also The latter comprises classroom training their entrepreneurial ideas on the
served to pay tribute to frontline by faculty members of Singapore theme “Reimagining Sustainability
workers and keep the public’s spirits up. Management University (SMU) and for Improving Our World”, as well as
Mapletree’s senior leaders. equipped them with job interview and
Mapletree’s continued financial presentation skills.
support is both crucial and timely for We are equally encouraged by the
Singapore’s art and culture scene, which number of staff-led CSR proposals for Under the Mapletree Real Estate
is significantly affected by the ongoing the Mapletree Staff CSR Programme. Programme at SMU, Mapletree and
pandemic. During this period when Since 2014, the programme has grown SMU jointly organised the second
access to the arts is severely restricted, from supporting three teams to edition of the Mapletree Real Estate
the Mapletree-TENG Academy 14 teams with S$5,000 each in seed Forum (October 2020) and the third
Scholarships are a vital support for funding. In FY20/21, we received edition of the Mapletree Annual
young artists and demonstrate the 17 proposals, of which nine teams Lecture (March 2021), holding both
Group’s commitment to the arts and renewed their commitment to support virtually for the first time. Over 360
education – two of the four pillars of beneficiaries they have been working participants took part in the forum titled
Mapletree’s CSR programme. For the with. Teams in seven markets carried “Opportunities and Challenges for
fourth year in a row, the Group awarded out their activities, namely Singapore, the Real Estate Sector in the Covid-19
these scholarships with a tenure of two Australia, Greater China, India, Japan, Era”, which painted a positive albeit
years and a value of S$10,000 each. the US and Vietnam. challenging outlook of the real estate
In FY20/21, there were four recipients. sector. “The Commercial Real Estate
The pandemic has compelled us to Eco-System” lecture was presented
We also launched the Mapletree adapt to the “new normal” and leverage by keynote speaker Professor Stijn
Traineeship (M-TRAIN), a 12-month full- technology to hold key CSR events. Van Nieuwerburgh, the Earle W. Kazis
time work-study programme completely and Benjamin Schore Professor of Real
funded by Mapletree. The programme Mapletree and the Singapore Institute Estate and Professor of Finance at
supports fresh graduates who face of Technology (SIT) successfully Columbia University’s Graduate School
difficulty finding employment during concluded the second edition of The of Business.
the pandemic. Employing up to Mapletree Challenge Grand Final via
Similarly, we organised the inaugural
virtual edition of the Singapore Bird
Race, which is now into its 36th year.
We saw a record turnout, with 250
participants from six different categories
competing under safe distancing
guidelines. Additional measures were
introduced, including remote reporting
of bird observations via a web-based
platform, as well as the omission of a
centralised flag-off and finale location.
The race was jointly organised by
Mapletree, BirdLife International and
the Nature Society (Singapore), and
supported by the National Parks Board.
Participants, including Minister for National Development Mr Desmond Lee, were equipped for
birdwatching at the 36th Singapore Bird Race.
11
message from
the chairman
Lastly, we were privileged to sponsor
the third edition of the Mapletree-
SCCCI River Hongbao Hackathon,
an annual youth entrepreneurship
competition supported by the
Singapore Chinese Chamber of
Commerce & Industry. Incorporating
either environmental sustainability or
social enterprise in their business ideas,
students showcased the unity and spirit
of Singapore’s “new normal” in this
year’s theme of “Forging a Brighter
Future”. The competition attracted
participants aged 18 to 29 from 11
tertiary institutions. Winning teams also
had the opportunity to set up booths at
Singapore’s largest Chinese New Year Mr Edmund Cheng, Chairman, Mapletree; Ms Low Yen Ling, Minister of State for the Ministry of Culture,
event, the annual River Hongbao, while Community and Youth & Ministry of Trade and Industry; and Mr Tan Aik Hock, Chairman, River Hongbao
2021 Organising Committee, presenting the Top 3 Finalists Award to Stick ’Em.
adhering to Covid safety measures.
EMERGING STRONGER FROM I am also deeply grateful to Group
CRISIS Chief Executive Officer Mr Hiew Yoon
Khong for his emphatic stewardship
Mapletree remains resilient in the at Mapletree. My appreciation
face of challenges and adversity. The extends to our employees as well,
global economy is gradually recovering who have not only stayed the course
and the rollout of Covid-19 vaccines in this unprecedented crisis but also
brings immense hope. However, new contributed greatly to the Group’s
variants of the virus are a stark reminder success.
that Covid-19 continues to be a
serious threat to our communities and With brighter days on the horizon, we
economies. will ride the waves of change and forge
ahead in the coming year.
On this note, I would like to record
my heartfelt gratitude to healthcare
workers everywhere for responding
swiftly and selflessly during the
1 PATMI denotes net profit after tax and non-
Covid-19 crisis. controlling interests attributable to Perpetual
Securities Holders and Equity Holder of the
Company.
To my esteemed and highly dedicated 2 Revenue is adjusted to exclude incentive fee
Board members, thank you for your income and residential revenue. They are not
nimble execution and strategic EDMUND CHENG deemed to be the core business activities for
the Group.
guidance in this past financial year. CHAIRMAN 3 Earnings before interest and tax (EBIT) plus
share of operating profit or loss of associated
companies and joint ventures (SOA), excluding
residential profits, incentive fee from private
funds’ divestment, revaluation gains or losses,
divestment gains or losses, foreign exchange
and derivatives gains or losses.
4 ROE denotes return on equity and is
computed based on PATMI attributable
to Equity Holder of the Company over
shareholder’s funds.
12 MAPLETREE INVESTMENTS PTE LTD ANNUAL REPORT 2020/2021You can also read
