ESR Delivers Stellar Growth with EBITDA and Net Profit up 42.9% and 20.8% to US$549.1 Million and US$245.2 Million, Respectively

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  • Revenue up 40.6% to US$357.4 million
  • Strong
    balance sheet with US$884.2 million of cash and net debt / total assets of
    26.6%
  • AUM grew
    by 38.7% to US$22.1 billion, further cementing ESR’s position as APAC’s largest
    logistics real estate platform
  • GFA increased
    by 42.8% to 17.2 million sqm

  

HONG KONG, CHINA – Media OutReach – 23 March 2020 – ESR Cayman Limited (“ESR” or the “Company”,
together with its subsidiaries as the “Group”; SEHK Stock Code: 1821), the
largest APAC focused logistics real estate platform, today announced its
results for the financial year ended 31 December 2019 (“FY2019”). 

 

The Group recorded strong revenue of US$357.4 million in FY2019, up 40.6%
from US$254.1 million in FY2018. Net Profiti was US$245.2 million,
representing 20.8% growth from US$203.0 million in FY2018. Core PATMI was
US$226.7 million, representing a 53.6% increase from US$147.6 million in
FY2018. EBITDA achieved a record US$549.1 million, up 42.9% from US$384.2
million in FY2018.  Adjusted EBITDA
increased by 49.8% to US$358.9 million in FY2019, compared with US$239.6
million in FY2018.

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FY2019

(US$ ‘000)

FY2018

(US$ ‘000)

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Year-on-Year Change (%)

Revenue

357,369

254,148

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40.6

Net Profiti

245,177

203,042

20.8

Core PATMIii

226,723

147,619

53.6

EBITDA

549,091

384,212

42.9

Adjusted
EBITDAiii

358,933

239,586

49.8

Notes
      
i. Profit After Tax
and Minority Interest (PATMI)
      ii. Excludes fair
value on completed investment properties, equity-settled share option expense, listing
expenses and tax effects of adjustments
    
iii. Adjusted EBITDA
is calculated as profit before tax, adding back depreciation and amortisation,
exchange loss/(gain), finance costs, equity-settled share option expense,
write-off related to loss of property, plant and equipment and the listing
expenses, and eliminating the effect of interest income, one-off insurance
compensation and fair value gains on completed investment properties and
investment properties under construction

Jeffrey Perlman, Non-executive Chairman of ESR, said, “2019 was a transformational year for ESR. The Group successfully completed a US$1.8 billion[1] IPO, delivered record EBITDA and Net Profit and further cemented its market leading position with over US$22.1 billion of AUM in Asia Pacific. Despite a challenging geopolitical environment, the Group was able to deliver strong growth across its three key pillars — investments, fund management and development while also expanding deeper into its six markets. ESR is well-positioned to capitalise on the strongest secular trends in Asia including the continued growth of e-commerce, the significant shift in capital flows to the region and the superior risk/reward proposition for logistics which is leading to higher capital values. Our asset-light, client-centric and e-commerce focused approach is and will continue to be the core competitive advantage of the Group and we look forward to continuing to deliver sustainable growth and results for our shareholders, capital partners and customers.”

In November 2019, ESR successfully listed on
the Stock Exchange of Hong Kong and raised new capital of US$0.6 billion from a
US$1.8 billion IPO, which was cornerstoned by OMERS Administration Corporation
and anchored by other leading global investors.

Rapid growth across all business segments

 

The Group’s investment segment result increased by 9.6% to US$256.1 million, which was primarily attributable to the increases in rental income, changes in fair value of financial assets and liabilities at fair value through profit or loss as well as dividend income.

 

The fund management segment result grew by 20.3% to US$131.8 million, which was mainly attributable to the increase in fund management revenues driven by the strong recurring income base from the Group’s funds under management. 

 

The development segment result soared more than 100% to US$244.8 million.

 

Robust platform expansion

ESR’s platform
expansion has been fueled by the strong momentum for both organic growth and
M&A activities.

 

In March
2019, ESR completed the privatisation of Propertylink. The Propertylink
acquisition both strengthened the Group’s local fund management capabilities,
and instantly scaled up its platform to make ESR a major player in Australia.

 

The Group
also continued to make further investments into the Singapore industrial REIT
market with investments into Sabana REIT and AIMS APAC REIT.

Integrated funds management platform

 

The Group made an impressive leap in asset under management (“AUM”), which grew 38.7% to US$22.1 billion. Its strong capital raising capability has been demonstrated in the closings of a range of funds and vehicles, including its second core fund in China with a portfolio of seven assets with an aggregate gross asset value of approximately US$276.7 million in partnership with New China Life Insurance, its third development fund in Japan, RJLF3, with equity commitments of up to US$1.8 billion and two funds in Australia: the AUD175 million ESR Australia Logistics Trust (EALT) and the AUD138 million ESR Office Partnership IV (EOP IV).

 

Industry leading portfolio and development pipeline

 

The Group’s portfolio of best-in-class modern facilities produced strong rental growth and maintained a high portfolio occupancy of 93% for stabilised assets on its balance sheet (with strong leasing momentum of 2 million sqm leased across the portfolio). Leasing activities continued to be strong, especially from e-commerce and 3PL customers who make up approximately 60% of its tenants.

 

As of 31 December 2019, the Group’s gross floor area (“GFA”) grew by 42.8% to 17.2 million sqm, mainly in its three core markets of China, Japan and South Korea where ESR has the largest development pipelines[2]. 

 

Building a sustainable future

As a leading player in the industry, ESR is
committed to building environmentally friendly facilities, integrating
sustainability elements into its facilities’ operations, and creating a
human-centric environment for its tenants and employees.

 

In South Korea, for example, ESR’s flagship
Bucheon Logistics Park won APAC’s first WELL Gold Certification for its
outstanding achievement in creating a work environment based on promoting
health and wellness. A growing number of other ESR developments have also won
recognition by global standards such as the Comprehensive Assessment System for
Built Environment Efficiency (CASBEE) and the Leadership in Energy and
Environmental Design (LEED).

Read Also:  This World Heart Day, Amgen Is Releasing Results of a Global Survey Of 3,200 Heart Attack Survivors Conducted Across 13 Countries

COVID-19

 

The Group has been closely monitoring the
COVID-19 situation. The well-being and safety of its stakeholders including ESR
employees, tenants and capital partners are of utmost importance to the Group.
As such, appropriate measures have been undertaken across the Group.

 

To date, there has been minimal disruption
caused by COVID-19 to the Group’s development and operating projects. Of the 43
construction projects (in both balance sheet and funds), only 2 are waiting for
the local government’s permission to resume work. The rest of the construction
projects remain on schedule. For the operating projects, only 2 out of 157
operating projects (in both balance sheet and funds) are temporarily shut. The
rest of the operating projects are unaffected and remain open.

 

Despite the uncertain global environment, the
Group’s balance sheet and liquidity continue to be strong.  ESR’s balance sheet remains well-capitalised
and the Group had US$884.2 million of cash and a net debt to total assets ratio
of 26.6% as of 31 December 2019. 
Additionally, recent financing activities have also demonstrated the
Group’s ability to materially reduce its cost of borrowing post IPO with the strong
support from international banks and investors.

 

The Group remains mindful of the evolving
environment and continues to monitor current global events and potential
further market disruptions. It will remain prudent in its approach in
managing its balance sheet over the rest of the year. In the near term, the
Group does not expect significant impact from COVID-19 on its
operations. The Group will continue to evaluate attractive investment
opportunities during this period of dislocation with the opportunity to tap
into its strong balance sheet in a capital constrained environment for many of
its peers.

Outlook — 2020 and beyond

 

Asia Pacific’s logistics sector is expected to continue to be supported by
urbanisation and population growth, accelerating trends towards online
retailing and scarcity of existing investment grade warehousing stock. The rise
of Asia’s middle class is expected to be a dominant economic theme in the
upcoming decade while private consumption in ESR’s six markets is forecast to
grow at a CAGR of 8.1% from 2019 to 2023. The structural shift to e-commerce
will continue to be the main tailwind propelling the logistics sector in 2020[3]
as penetration rates across Asia continue to grow. The total cross-border
e-commerce sales in Asia Pacific are expected to rise from US$181.4 billion in
2018 to US$389.5 billion in 2023[4],
representing a CAGR of 16.5%.

           

Looking ahead, the Group will continue to maintain its leadership position
in its six markets with a development pipeline of over 14 million sqm across
its portfolio as at 31 December 2019. The Group will continue to leverage on
third party capital to fund development starts and exercise a disciplined
approach to meet its targeted development completions slated for 2020 and
beyond.

 

ESR aims to further expand its fund management platform across geographies and
risk/return products to attract new capital partners while at the same time
enhancing collaboration with existing partners in new geographies. Leveraging its
scale and geographic presence, it will also identify and develop opportunities
in new growth markets while improving regional connectivity.

 

Jeffrey Shen and Stuart Gibson, ESR
Co-founders and Co-CEOs, said, “ESR’s APAC focused strategy will continue to
deliver what may be the global industry’s best opportunities for growth. Our
platform scale, business model, expertise and insights across Asia position us
well to ride numerous favourable trends over the long term. We will remain
focused on the Group’s growth in sustainable AUM and we are committed to
providing Space and Solutions for the Future. We will also prudently
monitor current global events, continue to explore growth opportunities in
different geographies and consolidate our leading position while offering long
term sustainable value to our stakeholders.”


[1] Including overallotment option

[2]
ESR has the largest pipeline in China’s
Greater Shanghai, Greater Beijing and Greater Guangzhou from 2020 to 2021; in
Japan’s Greater Tokyo and Greater Osaka regions from 2019 to 2020; in South
Korea’s Seoul Metropolitan Area from 2019 to 2020

[3] CBRE Research, Asia Pacific, Real Estate Market
Outlook 2020

[4] Forrester Analytics: Online Cross-Border Retail
Forecast, 2018 to 2023 (Global), April 2019

About ESR

ESR is the largest APAC focused logistics real estate platform by gross floor area (GFA) and by value of the assets owned directly and by the funds and investment vehicles it manages. Co-founded by its senior management team and Warburg Pincus, ESR and the funds and investment vehicles it manages are backed by some of the world’s preeminent investors including APG, SK Holdings, JD.com, Goldman Sachs, CPPIB, OMERS, PGGM, Ping An and Allianz Real Estate. The ESR platform spans across the People’s Republic of China, Japan, South Korea, Singapore, Australia and India. As of 31 December 2019, the fair value of the properties directly held by ESR and the assets under management with respect to the funds and investment vehicles managed by ESR recorded approximately US$22.1 billion, and GFA of properties completed and under development as well as GFA to be built on land held for future development comprised over 17.2 million sqm in total. ESR has been listed on the Main Board of The Stock Exchange of Hong Kong Limited since 1 November 2019.

For more information on ESR, please visit www.esr.com.

ESR Delivers Stellar Growth with EBITDA and Net Profit up 42.9% and 20.8% to US$549.1 Million and US$245.2 Million, Respectively - Brand Spur

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ESR Delivers Stellar Growth with EBITDA and Net Profit up 42.9% and 20.8% to US$549.1 Million and US$245.2 Million, Respectively - Brand SpurESR Delivers Stellar Growth with EBITDA and Net Profit up 42.9% and 20.8% to US$549.1 Million and US$245.2 Million, Respectively - Brand Spur

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ESR Delivers Stellar Growth with EBITDA and Net Profit up 42.9% and 20.8% to US$549.1 Million and US$245.2 Million, Respectively - Brand SpurESR Delivers Stellar Growth with EBITDA and Net Profit up 42.9% and 20.8% to US$549.1 Million and US$245.2 Million, Respectively - Brand Spur

Latest News

DEBx Medical Receives CE Mark Clearance and ISO 13485 Certification for Debrichem(R), a Novel Desiccant Gel for Chemical Debridement to Initiate Healing in Infected,...

  • Debrichem(R) offers a very effective, alternative approach to chronic wound care, initiating healing in more than 90 % of cases after one application[1]
  • CE mark and ISO 13485:2016 certification are important prerequisites for upcoming launches in markets worldwide
  • Chronic wounds affect 1 - 2 % of developed countries' populations,[2] unsuccessful treatment may lead to enlargement of the wound, bone involvement or in the worst case, amputation[3]
  • Debrichem soon to be launched in Europe, Hong Kong, South Africa, New Zealand and Australia


ROTTERDAM, THE NETHERLANDS - EQS Newswire - 25 February 2021 - DEBx Medical, the Dutch medical technology company revolutionizing the management of chronic wounds, is excited to highlight today the successful completion of the CE conformity assessment procedure for Debrichem(R). The innovative topical agent offers a superior alternative to surgical debridement, the current standard of care. Debrichem can now carry the CE mark for a medical device class IIb and has also been awarded ISO 13485:2016 certification. These certifications endorse the quality and safety of Debrichem to treat a high unmet medical need and the strength of the DEBx Medical team to achieve this quickly even in such difficult times. DEBx Medical plans first to launch Debrichem in Europe, South Africa as well as Hong Kong, New Zealand and Australia through a network of distribution partners; other markets will follow. DEBx Medical has started consultations with the FDA about the pathway to approval earlier this year.

Debrichem is a topical desiccant gel for chemical wound debridement used for the treatment of chronic infected and/or necrotic wounds. This novel product desiccates (dehydrates) the biofilm and the pathogens in the wound bed, debriding the biofilm chemically instead of surgically. Surrounding healthy skin is not affected.[4] The data underlying the CE mark approval show that, after a one-time 60-second application, more than 90 % of wounds result in full granulation,1 an important step in the healing process.[5] Due to its fast action and applicability outside the surgery room, Debrichem can easily be integrated within standard wound care procedures.4

"Being granted the CE mark and ISO 13485 certification for Debrichem in less than two years after founding DEBx Medical is an exciting and important milestone. I am proud of our achievements and would like to thank the whole team involved in this huge effort," said Dr. Bertus Quint, founding CEO of DEBx Medical. "Chronic wounds are painful and debilitating and patients have very limited options for healing. With Debrichem, we set out to significantly improve this situation which is frustrating for healthcare professionals and patients alike. We believe that Debrichem has the potential to meaningfully improve health outcomes and quality of life for millions of patients worldwide."

"In my day-to-day work, I experience the patients' despair associated with chronic wounds and the doctors' frustration with their inability to provide patients long-term healing. With the current COVID-19 pandemic, the situation has been exacerbated: many of our patients are in high-risk groups - elderly, diabetic or chronic cardiovascular patients - who now cannot go to the hospital for their urgently needed treatment," said David L. Helfet, MD, Professor of Orthopaedic Surgery, Weill Cornell Medical College and Hospital for Special Surgery, New York Presbyterian Hospital. "The major advantage of Debrichem is that with a relatively simple, quick, one time application it destroys the biofilm. Removing the biofilm is absolute key to get chronic wounds to heal. Debrichem is an important step forward in the management of chronic wounds and will find its place in the standard of care in a very short time. It may even have the potential to become the new gold standard for debridement in chronic wound care."

Chronic wounds are defined as wounds that have not healed, at least in part, after 4 to 12 weeks.[6] Physiologically, healing of chronic wounds is corrupted, among other factors, by excess inflammation and a recurrent or persistent, if not drug-resistant, microbial infection, often in the biofilm on a wound bed.4 The current gold standard treatment, maintenance surgical debridement, is a painful procedure performed in a sterile environment. Surgical debridement does not reliably initiate healing of the wound but can be part of an extensive wound management program requiring patients to repeatedly come into the hospital. Not surprisingly, general quality of life is impaired in patients with chronic wounds.6 Chronic wounds are estimated to have a prevalence of up to 2 % in the general population.[7] The wound etiology has an impact on outcome, arterial ulcers and venous leg ulcers are notoriously difficult to heal. Chronic wounds are also a common comorbidity of diabetes,[8] 13 % of patients with diabetes in North America to 17 % in Belgium are suffering from chronic wounds.[9] The burden of chronic wounds to healthcare systems and society around the world is substantial, exacerbated by the high rate of amputation in especially diabetic patients which is close to 34 % for diabetic foot ulcers.8 In the UK alone, chronic wounds generated costs of GBP 5.6 bn in 2018. The total wound care costs in the UK increased annually by 8 - 9 % with chronic wounds accounting for the largest share.[10]

References
[1] Cogo A et al., J Wound Care 2020;29(Sup7b):63-64. https://doi.org/10.12968/jowc.2020.29.Sup7b.1
[2] Nussbaum SR et al., Value Health 2018;21:27-32. https://doi.org/10.1016/j.jval.2017.07.007
[3] Strohal R et al., J Wound Care 2013; 22 (Suppl. 1): S1-S52. https://doi.org/10.12968/jowc.2013.22.Sup1.S1
[4] Cogo A et al., Wounds 2021;33:1-8. https://www.woundsresearch.com/article/restarting-healing-process-chronic-wounds-using-novel-desiccant-prospective-case-series
[5]http://www.shieldhealthcare.com/community/popular/2015/12/18/how-wounds-heal-the-4-main-phases-of-wound-healing/
[6] Olsson M et al., Wound Repair Regen 2019;27(1):114-125. https://doi.org/10.1111/wrr.12683
[7] Martinengo L et al., Ann Epidemiol 2019;29:8-15. https://doi.org/10.1016/j.annepidem.2018.10.005
[8] McCosker L et al., Int Wound J 2019;16:84-95. https://doi.org/10.1111/iwj.12996
[9] Zhang P et al., Ann Med 2017;49:106-116. https://doi.org/10.1080/07853890.2016.1231932
[10] Guest JF et al., BMJ Open 2020;10:e045253. https://doi.org/10.1136/bmjopen-2020-045253


The issuer is solely responsible for the content of this announcement.


About Debrichem(R)

Debrichem(R) is a disruptive new treatment option to address the infection in chronic wounds. The topical agent offers a superior alternative to surgical debridement, the current standard of care. Debrichem has been demonstrated to remove the biofilm and the pathogens from the wound bed that disrupt the onset of the natural healing process. Out of the more than 1.000 patients treated so far, more than 90 % of chronic wounds started to heal after only one treatment with Debrichem.4 The product is applied in a fast and simple, non-invasive procedure. Healthcare professionals should always consider using local anesthetics when applying the treatment. Debrichem can be used outside a surgical environment which can be particularly useful in situations, such as during the COVID-19 pandemic, where patients cannot get to hospitals to undergo surgery, avoiding long-term complications like amputation. Debrichem will be sold through a worldwide network of distributors, with the first market launches expected in Q1 2021.


About DEBx Medical

DEBx Medical B.V. is a Dutch medical technology company dedicated to revolutionizing the management of chronic wounds by enabling their healing, thereby improving the outcomes for millions of patients. DEBx Medical supports doctors and their patients from diagnosis through treatment, follow-up care, and maintenance of a healthy wound bed. The Company focuses its pipeline on targeting pathogens that corrupt wound healing, aiming to deliver affordable and effective treatment approaches that can easily be applied and implemented in daily clinical practice. Debrichem(R), DEBx Medical's first product, received a CE mark in early 2021 and will be launched in markets around the world. Debrichem offers a disruptive approach to debridement that has been demonstrated to enable healing of chronic wounds in more than 90 % of cases.

ESR Delivers Stellar Growth with EBITDA and Net Profit up 42.9% and 20.8% to US$549.1 Million and US$245.2 Million, Respectively - Brand Spur
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- Advertisement -ESR Delivers Stellar Growth with EBITDA and Net Profit up 42.9% and 20.8% to US$549.1 Million and US$245.2 Million, Respectively - Brand SpurESR Delivers Stellar Growth with EBITDA and Net Profit up 42.9% and 20.8% to US$549.1 Million and US$245.2 Million, Respectively - Brand Spur