ESR(HK:01821)2021-09-23 22:12Financial Performance - Adjusted EBITDA for the first half of 2021 was $215 million, representing a 42.3% year-over-year increase[9]. - Net profit after tax for the first half of 2021 was $230 million, up 58.8% compared to the same period in 2020[9]. - ESR's fund management segment achieved a revenue increase of 48.2% to $123.9 million in the first half of 2021, driven by a 37.9% year-on-year growth in assets under management to $32.7 billion[34]. - The total EBITDA for the group increased by 39% to $415 million, compared to $300 million in the first half of 2020[58]. - The profit before tax for the six months ended June 30, 2021, was $287,610,000, compared to $192,403,000 for the same period in 2020, reflecting an increase of approximately 49.4%[163]. - Net profit for the six months ended June 30, 2021, was $229,695,000, compared to $144,656,000 in the same period of 2020, showing a growth of around 58.8%[163]. - The total comprehensive income for the six months ended June 30, 2021, was $165,181,000, significantly higher than $50,142,000 for the same period in 2020, marking an increase of approximately 229.5%[163]. Assets and Liabilities - Total assets under management reached $36.3 billion as of June 30, 2021[5]. - The company reported a total asset value of $8.55 billion as of June 30, 2021, compared to $6.66 billion in the same period of 2020[9]. - The net debt to total assets ratio increased to 30.6% as of June 30, 2021, from 28.6% in the previous year[9]. - Total liabilities increased to $1,620,124,000 as of June 30, 2021, compared to $985,662,000 as of December 31, 2020, reflecting an increase of about 64.4%[166]. - The company's total non-current assets as of June 30, 2021, amounted to $7,172,546,000, compared to $5,861,284,000 as of December 31, 2020, representing an increase of about 22.4%[165]. - Total equity rose from $3.8 billion on December 31, 2020, to $4.2 billion on June 30, 2021, driven by a net profit of $229.7 million and $256.3 million from the issuance of NC5 perpetual securities[61]. Investments and Acquisitions - The company announced a proposed acquisition of ARA Asset Management for $5.2 billion, which will increase total assets under management to $131 billion[18]. - The company completed the acquisition of a $3.8 billion (approximately $2.9 billion) logistics property portfolio in Australia, increasing its asset management scale by 80%[34]. - ESR achieved a strong rental market sentiment in 2021, with net absorption in Asian warehousing reaching the highest quarterly performance in recent years[39]. - The proposed acquisition of ARA Asset Management Limited for USD 5.2 billion will create the largest real estate and property management company in the Asia-Pacific region, increasing ESR's asset management scale to USD 53 billion[46]. Market Position and Strategy - The new economic assets under management will amount to $53 billion, positioning the company as the largest real estate fund management platform in the Asia-Pacific region[20]. - The company aims to leverage its unique closed-loop solution ecosystem to assist capital partners in reallocating assets back into new economy real estate[22]. - ESR's strategy includes exploring related businesses and investment products within the Asian market, leveraging its ecosystem of stakeholders[33]. - The company aims to leverage its scale and geographic positioning to enter new high-growth markets through selective acquisitions and partnerships[33]. - ESR is well-positioned to capitalize on ongoing growth and development opportunities, supported by a strong business foundation and a robust balance sheet[46]. Operational Highlights - ESR Cayman Limited manages over 22.6 million square meters of operational and under-construction properties across the Asia-Pacific region[25]. - The company has a leading position in reserve development projects in major markets such as China, Tokyo, Osaka, and Seoul, with a total of 393 properties[25]. - E-commerce and third-party logistics tenants account for 64% of ESR's tenant base, indicating a strong focus on these sectors[25]. - ESR's property portfolio maintained a strong occupancy rate of 89% and leased over 1.6 million square meters of space[37]. - The company has a robust management team with extensive experience across major asset classes in Asia, supported by reputable shareholders[31]. Cash Flow and Financial Management - Cash and bank balances stood at $1.13 billion as of June 30, 2021, compared to $947 million in the same period of 2020[9]. - As of June 30, 2021, ESR had over $4.4 billion in committed but uncalled capital available for future investments[34]. - The company maintained a cash balance of $1.1 billion as of June 30, 2021[19]. - The company’s cash flow analysis indicates a strategic focus on maintaining liquidity while managing financing activities effectively[179]. Shareholder Information - As of June 30, 2021, OMERS Administration Corporation holds 456,221,943 shares, representing 14.91% of the total shares[79]. - The company issued a total of $260.2 million in NC5 perpetual securities with a distribution rate of 5.65% during the first half of 2021[19]. - The board decided not to recommend an interim dividend for the six months ended June 30, 2021, maintaining a long-term goal of sustainable returns aligned with the company's growth[145]. Employee Compensation and Incentives - The company has a total of 303,658,464 shares that may be issued under the post-IPO share option plan, which does not exceed 10% of the shares issued at the time of global offering completion[108]. - The KM ESOP plan aims to align the interests of board members and employees with those of shareholders, incentivizing performance and retention[84]. - The company has adopted a competitive compensation structure to attract and retain talent, with regular reviews of its compensation policies[144].