SINGAPORE (May 31): Mapletree Investments announced record earnings of $1.4 billion for FY16/17, up 46.5% compared FY14/15.
This came on the back of strong recurring earnings, investment and other gains, as well as revaluation gains.
Revenue for the full year rose 23.9% to $2,328.8 million, driven by earnings from the group’s acquisitions in Vietnam, US, UK, and Australia; the completion of properties previously under development, such as Mapletree Business City II in Singapore and Mapletree Logistics Hub Tsing Yi in Hong Kong SAR; as well as contributions from the group’s four managed real estate investment trusts (REITs).
(See also: Mapletree Industrial Trust’s FY16/17 DPU rises 2.2% to 11.39 cents)
(See also: Mapletree Commercial Trust says 4Q DPU up 12% to 2.26 cents)
(See also: Mapletree Logistics Trust announces 3% rise in 4Q DPU to 1.86 cents)
In line with the higher revenue and profitability, recurring PATMI rose 12.6% to $643.6 million, whilst the group recorded a higher return on equity (ROE) of 12.8% as compared to a year ago.
The groups assets under management (AUM) increased to $39.5 billion over the year, with assets in new markets (Europe, US, Australia) growing to account for 14.2% of total AUM or some $5.6 billion in FY16/17.
“To seek continued growth, we have gradually expanded from an Asia-centric company to a global company with presence in 12 economies since FY14/15. We had also ventured into new asset classes of student housing, corporate housing and serviced apartments over the recent years. This strategy has paid off with strong recurring earnings accounting for 45.5% of our total profits this year and allowing us to achieve our highest profitability yet,” says Hiew Yoon Khong, CEO of Mapletree Group, in a press release on Wednesday.
“We will continue to grow a sizeable portfolio of student housing assets, as we see increasing demand from private investors who seek stable and strong returns from the anti-cyclical nature of this asset class. We plan to syndicate another private equity fund focused on this asset class if market conditions are right,” he adds.
As at 3:38, units of Mapletree Industrial Trust (MIT), Mapletree Commercial Trust (MCT), Mapletree Logistics Trust (MLT) and Mapletree Greater China Commercial Trust (MGCCT) are trading at $1.82, $1.54, $1.16 and $1.08 respectively.
