ESR-REIT Annual Report 2024 45 In FY2024, ESR-REIT successfully completed two transformational acquisitions from the pipeline of its Sponsor, ESR Group, further Reinforcing their support for ESR-REIT: • 100% trust beneficiary interest in ESR Yatomi Kisosaki Distribution Centre, a modern logistics facility in Nagoya, Japan • 51% interest in 20 Tuas South Avenue 14, a highspecifications manufacturing facility in Singapore, which also features newly constructed ramp-up logistics warehouses These strategic acquisitions, with a total outlay of approximately S$772.6 million, further enhance ESRREIT’s exposure to the New Economy sectors, reinforcing its commitment to long-term, sustainable growth. Both acquisitions were completed in November 2024 and have since commenced income contribution to ESR-REIT. ESR Yatomi Kisosaki Distribution Centre, Japan ESR Yatomi Kisosaki Distribution Centre is a four-storey double ramp modern logistics facility with a total land area of 79,096 square metres (“sqm”), was completed on 28 April 2022, and has a CASBEE A Sustainability Rating, which is one of the highest functional standards for grading green buildings in Japan. The addition of this sizeable freehold asset will allow us to scale up our presence and leverage ESR Japan’s on-the-ground expertise for economies of scale. This acquisition not only expands our footprint in a key market but also strengthens our portfolio with a high-quality and sizeable freehold New Economy asset. ESR Yatomi Kisosaki Distribution Centre, Japan - one of two transformational acquisitions by ESR-REIT in FY2024 WE SEEK TO ACTIVELY OPTIMISE THE PORTFOLIO ASSETS TO STAY AHEAD OF INDUSTRY TRENDS AND BE FUTURE-READY CREATING VALUE FOR UNITHOLDERS ESR-REIT remains committed to deliver sustainable returns for our Unitholders. To create a leading New Economy and Future-Ready AsiaPacific S-REIT, and to ride on the changes in economic structural trends and continued supply chain disruptions, the Manager has continued its rebalancing efforts to increase its exposure to the New Economy sectors of Logistics and High-Specifications Industrial assets. This has led to strong rental reversions and stable occupancy achieved in our portfolio. Over the medium to long term, the Manager expects acquisition opportunities across its S$6.0 billion1 portfolio of 72 properties, investment in joint venture and three property funds. The overall portfolio optimisation includes the conversion of existing properties into New Economy asset types such as Logistics and High-Specifications Industrial assets to meet industrialists’ evolving business needs, as well as the divestment of non-core assets. The Manager’s objective for each of the properties in the portfolio is to generate stable income from such properties for the Unitholders of ESR-REIT. Completed Transformational Acquisitions In FY2024, ESR-REIT built on the momentum of the first phase of its 4R Strategy executed in FY2023, which was focused on portfolio Rejuvenation through the divestment of non-core assets and early equity fundraising to strengthen the REIT’s balance sheet for strategic growth. With a solid financial foundation in FY2024, the Manager concentrated on Recycling capital into high-quality assets aligned with its long-term growth strategy. 1 As at 31 December 2024. OPERATIONS REVIEW
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