36 STRATEGICALLY ADVANCING VALUE CREATION ESR-REIT strategically leverages its competitive strengths to build a resilient and well-balanced portfolio of high-quality assets aligned with evolving market trends and demands. Committed to delivering long-term value to stakeholders, ESRREIT continuously enhances and strengthens its portfolio while actively exploring new opportunities for growth and value creation. This proactive approach reflects its dedication to market adaptability, portfolio rejuvenation, and sustainable value generation for all stakeholders. OUR COMPETITIVE STRENGTHS Resilient and Balanced Portfolio A balanced portfolio with 72 quality incomeproducing industrial properties aggregating S$6.0 billion in total assets across four subasset classes in key industrial zones across Singapore, Australia and Japan, together with three investment funds. We have reduced diversification risks to our portfolio by subsector type, tenants and geography. Diversified Tenant Network An extensive tenant base of 379 tenants creates a tenant network that reduces exposure to any one particular sector. Prudent and Balanced Capital and Risk Management ESR-REIT has a stable and secure income stream supported by prudent capital and risk management strategies. Diversified sources of funding ensure ESR-REIT can tap into alternative pools of capital to optimise Unitholder returns. Active Asset Management Maximising the growth potential of the portfolio is conducted through proactive asset management focusing on marketing and leasing, delivering high standards of property and customer service, improving operational efficacy and costs, and engaging in asset enhancement initiatives. Experienced and Professional Management Teams ESR-REIT’s management team comprises real estate and finance professionals with proven track record and a wealth of experience across local and regional real estate companies and financial institutions, setting the tone for a collaborative team culture focused on results. Backed by Strong and Committed Sponsor ESR-REIT is sponsored by ESR Group, AsiaPacific’s #1 real asset manager powered by the New Economy. Continued Commitment Towards Sustainability ESR-REIT’s sustainability approach reinforces the integration of environmental, social and governance (ESG) risks and opportunities into its business strategy, asset and property management activities, creating value for its key stakeholders. OUR LONG-TERM STRATEGY ESR-REIT’S THREE-PRONGED STRATEGY FOCUSES ON OPTIMISING UNITHOLDER RETURNS WHILE MITIGATING RISKS Active Acquisition and Development Growth 1. Yield-accretive, scalable and value-enhancing acquisition opportunities in Singapore, Australia and Japan 2. Potential pipeline of assets from the Sponsor, ESR Group 3. Exploring opportunities to participate in development projects, either individually or in joint venture with the Sponsor 4. Divest non-core assets and redeploy capital to acquire/develop higher value-adding properties Achieving Organic Growth 1. Focus on asset enhancements to unlock value and attract high value tenants 2. Proactive asset management to maximise returns 3. Enhance tenant quality and base by leveraging on Sponsor’s capabilities and networks Exercising Prudent Capital Management 1. Maintain a well-staggered debt maturity profile and long-term debt to total assets target range of 30 to ±40% to mitigate financial and liquidity risk 2. Exercise prudent capital and risk management 3. Diversify funding sources into alternative pools of capital 4. Broaden and strengthen banking relationships OUR ASSETS Business Parks High-Specifications Industrial Asset Type: Business Parks which are properties that cater to industries/businesses relating to high-technology, research and development (“R&D”) value-added and knowledge-intensive sectors. Tenant Profile: Companies that engage in a range of activities which are technology and research-oriented industries and non-manufacturing in nature such as technical support, informationcommunication, product design, R&D, call and service centre and back-end office function. Read more on pages 68 to 69 Asset Type: Mixed-use industrial buildings typically used for higher value industrial activities like testing and certification, R&D, and clean room activities. These buildings have modern facades, air-conditioned units, sufficient floor loading, ceiling height and electrical power capacities to enable both manufacturing and supporting office functions to be carried out concurrently. Tenant Profile: Companies in technology, R&D and knowledge-intensive sectors involved in light industrial activities such as precision engineering and data centres. Read more on pages 70 to 71 Logistics General Industrial Asset Type: Logistics properties are typically equipped with high floor loading and high floor-to-ceiling heights suitable for tiered storage of cargo. Tenant Profile: Third-party logistics providers, wholesalers, distributors and import/ export companies. Read more on pages 76 to 83 Asset Type: General industrial buildings can be single or multi-storey facilities dedicated to general and heavy manufacturing or factory activities. Tenant Profile: Companies that engage in general manufacturing activities. Read more on pages 72 to 75
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