ESR Group, the largest real asset manager in Asia Pacific (APAC) and sponsor to SGX-listed ESR-LOGOS REIT (E-LOG) J91U , has received an investment grade first-time “AA-“ rating with a stable outlook from the Japan Credit Rating Agency, Ltd (JCR).
In its report, JCR highlighted the “creditworthiness of the group based on the management integration with the subsidiary operating companies” and “the company’s presence in the Asian market, access to influential investors for co-investment and thereby reduced development risk, stable cash flow generation backed by fund management income, and high financial soundness backed by conservative financial discipline”.
ESR Group's co-founders and co-CEOs, Stuart Gibson and Jeffrey Shen, called the rating a “big milestone” for the group.
“The JCR rating further validates our asset light business model and the strong secular trends that underpin our growth,” they say.
“Our financial discipline which is highlighted by our robust balance sheet and our continuous and active capital recycling are key features of our approach to running a best-in-class fund management business. We expect this investment grade rating to allow us to deepen and diversify our funding channels,” they add.
As at June 30, 2022, the group has assets under management (AUM) of US$32 billion ($43.09 billion) in Japan and approximately 4.5 million sqm of gross floor area (GFA).
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Shares in ESR Group closed 46 HK cents higher or 3.43% up at HK$13.86 ($2.38) on the HKEx on March 3.
