Mapletree Investments Pte has reported a net profit of S$1.02 billion in Financial Year 2020/2021 (FY20/21) which ended 31 March 2021, before a one-off accounting gain from the deconsolidation of Mapletree Industrial Trust (MIT).
Including the one-off accounting adjustment, the group recorded a net profit of S$1.85 billion, a 4% increase from the previous financial year.
The real estate development, investment, capital and property management company said performance underscored the strong focus on operations and capital recycling efforts, complemented by some S$175 million in revaluation gains.
It added that the group’s profit were underpinned by its significant exposure to sectors that continue to show growth through the pandemic.
FY20/21’s revenue fell 29.4% year-on-year to S$2,735.9 million in FY20/21 due partly to the accounting treatment from the deconsolidation of MIT and the weaker performance of Mapletree’s retail and lodging assets.
However, effective Group-wide cost containment measures have helped cushion the negative impact of Covid-19. The Group’s assets under management (AUM) increased 9.6% to S$66.3 billion in FY20/21.
Mapletree’s EBIT + SOA3, whose largest contributors are the four Singapore-listed REITs, was at S$1,862.9 million. Recurring PATMI remains strong at S$633.3 million with contributions from existing portfolios and further enhanced by full-year contributions from data centre assets in the United States (“US”) and commercial assets in Global Technology Park in Bengaluru, India. The Group reported a ROE1and ROIE4of 10.6% and 8.6% respectively in FY20/21.
As at FY20/21, the Group had cash reserves of S$2,021.3 million and reduced its net gearing ratio by two percentage points to 60.5%. Shareholder’s funds have also increased by 9.8% to S$17,660.1 million.
Hiew Yoon Khong, Mapletree’s group CEO, said: “Mapletree delivered another set of robust results despite the overall weakened business sentiment. Undoubtedly, Covid-19 has brought about near to medium-term challenges; however, the Group’s good operating performance has shown the resilience of our business model and strategies.
“During the year, we continued to deploy a significant amount of capital amounting to S$2.3 billion into the logistics and data centre sectors. These sectors, which have outperformed other asset classes during the pandemic period, contributed some S$596.2 million or 32% to the Group’s EBIT + SOA3.
“We will continue to firstly, focus on managing and improving our operating performances of our assets; secondly, sourcing, investing and developing assets which will deliver attractive and consistent returns globally in identified developed as well as developing markets; thirdly, strengthening our financial position by prudent capital management including monetisation of assets through syndication efforts. With these strategies being executed, we are on track to achieve the targets set in our current Five-Year Plan”.
In February 2021, Mapletree acquired a land plot for HK$813 million (~S$140.4 million) in Hong Kong SAR which will be developed into the Group’s first data centre in the city. Slated for completion by 2023, the approximately 4,000 sqm site will be developed into a high load data centre capable of delivering up to 50MVA of building power.
The group has also executed several capital recycling initiatives in support of its stable of listed REITs, including the remaining 60% stake in Mapletree Redwood Data Centre Trust which holds 14 data centres in the US to MIT for US$494.0 million (S$662.0 million).