Singapore – Mapletree Investments Pte Ltd (“Mapletree” or “the Group”), a leading Asia-focused real estate development, investment and capital management company today announces strong results for its financial year ended 31 March 2011 (“FY10”). The Group’s profit after tax and minority interests (“PATMI”) rose a sturdy 90% to S$747 million from S$394 million in FY09 while its revenue grew 30% to S$590 million from S$454 million. As at 31 March 2011, the total real estate assets owned and managed by Mapletree reached S$15.4 billion, up 19% from S$12.9 billion a year ago.

Overall improved rental performance of its Singapore commercial properties (including rental from recently completed developments namely, Mapletree Anson and Mapletree Business City), and new contributions from properties acquired in Japan and Vietnam during FY10, as well as increased fee income contributed to the Group’s better revenue. Mapletree’s signature commercial development, VivoCity, saw both its shopper traffic rose and gross turnover increased by more than 10% over the same period last year. These, together with higher rental uplift from renewals and new leases translated into higher rental revenue for the Group. On its overseas rental revenue performance, the Group saw new income streams from three newly acquired business space assets in Japan as well as Pacific Place, a mixed-use serviced apartment, office and retail property in Hanoi, Vietnam, acquired in August 2010.

The Group enjoyed a significant rise in its fee income in FY10, which rose 50% to S$128 million from the previous year’s figure of S$85 million. Contributing to fee income growth was the incentive fee earned from the divestment of Singapore industrial properties via a highly successful Initial Public Offering (“IPO”) of the Mapletree Industrial Trust (“MIT”) in October 2010 and higher recurring fee income from Mapletree Logistics Trust (“MapletreeLog”) as MapletreeLog resumed its growth strategy through yield accretive acquisitions.

Mr Hiew Yoon Khong, Group Chief Executive Officer of Mapletree Investments Pte Ltd said, “Our business model of combining our development expertise with capabilities in investment and capital management has produced good results. Besides establishing ourselves as a reputable developer who successfully rejuvenated the HarbourFront and Alexandra Precincts through signature projects such as VivoCity and Mapletree Business City, we have built up a credible track record in capital management. This can be seen through the recent listing of our industrial and commercial real estate investment trusts – the two largest Singapore-REIT IPOs to-date.”

The Group also divested Mapletree Tower in Beijing, China which yielded good returns to investors in the Mapletree India China (“MIC”) Fund. “With Mapletree Tower, we are pleased to have realised a full cycle of value creation in slightly less than three years. We were able to boost the occupancy from 5% to 70% within 15 months despite the global financial crisis as well as implement active asset management which helped us realise significant value,” added Mr Hiew.

The Group further made a number of investments in FY10, including inter alia, three business space properties in Japan, logistics assets in Singapore, Vietnam, Korea and Japan by MapletreeLog, Gateway Plaza, a Grade A office building in Beijing’s central business district and Silver Court, a mixed-use property comprising offices, serviced apartments and retail space located in the Shanghai central business district, by MIC. At the close of the financial year, Mapletree’s AUM grew to S$15.4 billion, a 19% increase from S$12.9 billion last year.

Mapletree had in 2009, adopted a key medium term target to effectively “double up” in scale and achieve strong and sustained returns for its investors, while focusing on growing the recurring fee income part of its business. The target includes achieving an asset under management (“AUM”) of S$20 billion to $25 billion with a higher proportion of managed assets to owned assets, a recurring fee income of at least S$200 million, and returns on invested equity (“ROIE”) of between 10% and 15% by financial year ending 31 March 2014. With the strong FY10 scorecard, the Group is on track to meet its performance target.

Looking forward

In line with its growth strategy in Asia, Mapletree plans to continue with its expansion in markets in Singapore, China, Japan, India and Vietnam. At the same time, the Group will also look to pursue opportunities in new markets such as South Korea.

Highlights from Mapletree’s FY10 Financial Performance 

• Revenue of S$590 million, up 30%
• PATMI of S$747 million, up 90%
• Shareholder’s Funds of S$5.8 billion, up 14%
• Total Assets at S$9.7 billion, up 11%
• Owned and Managed Assets S$15.4 billion, up 19%
• ROE up from 8% to 14%
• ROIE up from 8% to 12%