ESR(HK:01821)2025-03-25 09:14Financial 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].