Mapletree Investments' PATMI up 39% to S$1.96b for FY17/18

MAPLETREE Investments announced a profit after tax and minority interests (PATMI) of S$1.96 billion for the financial year ended March 31, up 39 per cent from a year ago.

For FY17/18, its revenue rose by 37 per cent to S$3.19 billion, while recurring PATMI gained 6 per cent to S$685 million.

Mapletree Investments also recorded a higher return on equity of 15.7 per cent compared to a year ago.

Its assets under management (AUM) grew 17 per cent to S$46.3 billion, underpinned by the group's deeper penetration into markets such as Australia, the US and the UK.

Hiew Yoon Khong, Mapletree Group CEO said: "These figures are testament to the group's business model working towards delivering a sustainable high-margin real estate business. We are happy to note that there are clear and positive signs that we have elevated our ability to deliver a high rate of profitability in the next three to five years."

Aside from the recurring stream of earnings from its underlying operations, earnings were also driven by several other factors.

The first is continued momentum in student accommodation acquisitions in the US and UK, as well as in office and data centres in the US and Australia. These markets accounted for S$9.6 billion or 21 per cent of Mapletree's total AUM.

The second is progress in development projects and leasing of newly developed properties. The group completed eight logistics assets, with a total gross floor area of 666,000 square metres in China to meet the increasing demands of e-commerce and third-party logistics operators. In Singapore, Mapletree Business City II and 18 Tai Seng, which secured a strong and diversified tenant mix, have achieved committed occupancies of approximately 86 per cent and 84 per cent respectively as at March 31, 2018.

Finally, sustained contributions from Mapletree's four managed Reits and six private real estate funds also helped boost earnings. The group's four Reits have performed strongly and delivered distribution per unit growth to their investors. As at March 31, 2018, its four Reits and six private funds have a combined AUM of over S$31 billion.

Looking forward, Mr Hiew said that Mapletree Investments will expand its capital management business by structuring suitable new private fund products for investors.

On the investment front, the group is currently focused on seeding logistics platforms in the US and Europe. It expects to make significant progress over the next 12 months.