ESR

FY2019 Results Presentation

23 March 2020

Disclaimer

1

The presentation may contain projections and forward-looking statements that reflect the Company’s current views with respectto future events and financial performance and are subject to certain risks, uncertainties and assumptions. In some cases,these forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believe”,“continue”, “could”, “estimate”, “forecast”, “plan”, “prepare”, “project”, “anticipate”, “expect”, “intend”, “may”, “will” or “should” or,in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives,goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. By theirnature, forward-looking statements involve known and unknown risk and uncertainty because they relate to future events andcircumstances. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties, andactual results may differ materially from those in the forward-looking statements as a result of various factors and assumptions,many of which are beyond the Company’s control. Prospective investors are cautioned not to rely on such forward-lookingstatements. Neither the Company nor any of its affiliates, advisors, representatives or underwriters has any obligation to, nor doany of them undertake to, revise or update the forward-looking statements contained in this presentation to reflect future eventsor circumstances, except where they would be required to do so under applicable law.

This presentation material includes measures of financial performance which are not a measure of financial performance underInternational Financial Reporting Standards (“IFRS”), such as Adjusted EBITDA and Adjusted Net Profit. These measures arepresented because the Company believes they are useful measures to determine the Company's financial condition andhistorical ability to provide investment returns. Adjusted EBITDA and Adjusted Net Profit and any other measures of financialperformance in this presentation material should not be considered as an alternative to cash flows from operating activities, ameasure of liquidity or an alternative to net profit or indicators of the Company's operating performance on any other measureof performance derived in accordance with IFRS. Because Adjusted EBITDA and Adjusted Net Profit are not IFRS measures,Adjusted EBITDA and Adjusted Net Profit may not be comparable to similarly titled measures presented by other companies.

2

Contents

• Update On COVID-19 Situation

• FY2019 Financial Recap

• Industry Update

• FY2019 Operations Overview

• FY2019 Financial Overview

• Outlook

• Appendix

3

Update On COVID-19 Situation

Well-being / safety of our stakeholders including ESR employees, tenants and capital partners are of utmost importance

▪ Appropriate steps have been undertaken across the Group

▪ To date, no ESR employees have been infected

1

2

3

ESR has witnessed only minimal disruption to its projects

▪ Only 2 out of ESR’s 43 construction projects1 are waiting for government’s permission to resume work; all other projects remain on schedule

▪ Only 2 out of ESR’s 157 operational projects1 are temporarily shut; all other operational projects are unaffected

ESR’s balance sheet is very well-capitalised

▪ U$884 million of cash Dec-31 2019; net gearing of 26.6%

▪ Closed two significant Group loans YTD: (i) US$250 million syndicated unsecured senior loan (Libor +3%) and (ii) S$225 million Singapore bond (5.1% rate)

▪ Post IPO, ESR has been able to reduce its cost of borrowing by > 150bps

4 E-commerce growth is accelerating in this environment

▪ ESR is well-positioned with over 60% of its tenants as e-commerce companies and 3PLs

Note:(1) Based on assets on balance sheet and portfolio assets in funds and investment vehicles

4

Total

EBITDA

US$549m US$245m US$227m

Total

PATMICore

PATMI1

▪ Successfully raised US$600 million of new capital from a US$1.8 billion2 IPO anchored by cornerstone OMERS and leading global investors

▪ Delivered strong operating performance across all key financial metrics

▪ Significant growth in total assets under management (AUM) primarily driven by new funds raised as well as through M&A (including the privatisation of Propertylink (PLG))

▪ Further solidified our leading market positions across Asia Pacific

▪ Robust balance sheet with strong liquidity

Total

AUM

US$22.1b 26.6%

Net Debt/Total Assets Cash

+42.9%

+38.7%

+20.8% +53.6%

FY2019 Financial Recap

Notes:(1) Excludes fair value on completed investment properties, pre-IPO ESOP expenses, listing expenses and tax effects of adjustments (2) Includes exercise of the over-allotment option

+6.8pp

US$884m

+52.2%

Kunshan Friend Park I, China

5

Section 1 Industry Update

APAC Logistics – Largest Secular Growth Opportunity In Asia

Continued Rise of E-commerce Across Asia

Paradigm Shift in Capital Flows For Region and

Sector

Superior Risk / Reward Proposition of Logistics

to Drive Cap Rate Compression and Capital

Value Growth

ESR has and will continue to uniquely leverage the three largest secular trends to further solidify its market leading position in Asia

6

APAC Logistic Market Growth Well-Supported By Increasing E-commerce Across The Region

The PRC1

28.2%

40.4%

2019 2024E

Japan3India4

South Korea2

Australia65 Singapore

Source: Euromonitor

28.2%38.2%

2019 2024E

4.7%

8.5%

2019 2024E

9.1%11.6%

2019 2024E

9.2%

14.5%

2019 2024E

10.8%

14.0%

2019 2024E

Increasing e-commerce penetration will continue to support long-term demand for modern logistics facilities

7

E-commerce penetration across Asia

8

Total cross-border investment transaction breakdown by region

Capital flows are already starting to pivot towards APAC, but APAC still remains under-penetrated

Superior growth prospects coupled with strong demographic and urbanisation trends are fuellingdemand for APAC

Expected change in capital flows into different markets over the next five years

Global Funds Are Under Allocated to APAC With Over 75% Investors Indicating Plans To Boost Allocation To The Region

13%18% 19%

60% 51%57%

27%31%

24%

2017 2018 2019

APAC EMEA Americas

6.9

6.2

6.1

5.8

0 1 2 3 4 5 6 7 8 9

APAC

Europe

Americas

Middle East / Africa

Large decline

Stay the same

Large increase

Sources:Real Capital Analytics, PwC

Logistics-focused funds gaining vs. retail-focused funds

Capital Allocation Increasingly Skewed Towards Funds Focused On Logistics Due To E-commerce

Investors will continue to cycle out of retail and into logistics, given the transformative impact of e-commerce

0

20

40

60

80

100

2014 2015 2016 2017 2018

Logistics Hospitality Multi-family / Residential Office Retail

Source: PERE, Real Capital Analytics

(%)

Note:(1) Based on c. US$ 1Tn estimated investment volume for 2019

(US$ billion)

8.0 8.9

2.0

>12.0

2014 20142018 2018

Retail Logistics

0

10

20

30

Retail Industrial

Q3 2008

Q3 2010

Q3 2012

Q3 2014

Q3 2016

Q3 2018

Q3 2019

Logistics 2019 deal activity expected to exceed US$160 billion, representing c.16% of global investment activity

c.25% of investment volume

9

As investors have shifted focus in favour of logistics, investments in logistics sector have surpassed retailAllocation to logistics real estate on the rise

Global fundraising by sector specific strategies % of global investment

Fundraising – logistics vs. retail

Logistics

10

Risk/Reward for Logistics Will Continue To Transform Capital Values

365 350 333 310 300255 225

180 175100

51

Sin

gap

ore

Osaka

Tokyo

Gu

an

gzh

ou

Seo

ul

Melb

ourn

e

Syd

ney

Beiji

ng

Sha

ng

ha

i

Lo

nd

on

US

avera

ge

(Basis points)

0.2%

2.1%

1.3%

US China North Asia (ex-China)

APAC offers more attractive valuation premium spreads compared to more mature markets in the US and UK

Cap rate tightening and differential shrinking will drive higher logistics asset values, generating outsized returns for the asset class

Source: Real Capital Analytics, NCREIF, JLL, 4Q 2019Notes:(1) U.S. primary office markets (Seattle, San Francisco, Los Angeles, Boston, New York, Chicago, Washington D.C., Silicon Valley-San Jose); U.S. primary industrial markets (Atlanta, Chicago,

Dallas, Inland Empire, Los Angeles, Northern NJ, Oakland-East Bay, Philadelphia and Eastern PA). China: simple average of Beijing, Shanghai & Guangzhou; North Asia: simple average of Tokyo, Osaka & Seoul

(2) As of 2019. Debt costs are based on investment grade borrowers, core stabilized assets fixed pricing on typical market maturities. In the calculation of the market yield, the transaction costs of purchasing or leasing of space are not included. The market yield therefore reflects the returns to investment before transaction costs, assuming full occupancy and that the current income being paid is the market effective rent

~208bps

~128bps

Potential for meaningful cap rate compression in the APAC logistics real estate sector

Key logistics hubs in APAC offer more attractive premia

Spreads between logistics & office cap rates1

Logistics gross rental yields over costs of debt2

RW NankoNaka DC, Japan

11

Section 2 FY2019 Operations

Overview

12

#1 APAC Focused Logistics Real Estate Platform with Top Positions in Its Respective Markets◼ ESR has over 17.2 million sqm GFA in operation and under development1 and a further c.6.0 million

sqm GFA of development pipeline with MOUs2 signed across top tier markets with a high quality tenant base

The PRC1

South Korea

Singapore5

Australia

Japan3

India4

6

2

Notes:(1) Consisting of approximately 9.2 million sqm of GFA of completed properties, approximately 4.7

million sqm of GFA of properties under construction and approximately 3.3 million sqm of GFA to be built on land held for future development as of 31 December 2019

(2) MOUs as of 31 January 2020(3) As of 31 December 2019(4) In terms of proportion of total area occupied in China in comparison to only GLP as of September

2017 when GLP was privatized (5) In Greater Shanghai, Greater Beijing and Greater Guangzhou from 2020 to 2021(6) As of 4Q 2019, in Greater Shanghai, Greater Beijing and Greater Guangzhou as measured by GFA

(7) By GFA from 2019 to 2020(8) Total initial capital commitments in the India Fund of US$228.9 million, with the potential to increase

to US$428.2 million. Based on the indicated leverage ratio of each fund, the total development size of the JV will be c.US$1 billion

(9) In terms of number of assets(10) Including ESR REIT and Sabana REIT, Sabana REIT AUM c.S$0.9 billion, ESR holds c. 93.8%

equity interest in Sabana Manager as of 31 December 2019(11) Including 57 properties in ESR REIT and 18 properties in Sabana REIT as of 31 December 2019(12) 19.9% stake in Centuria

3. Japan Platform

#1 development pipeline in

the Greater Tokyo and Greater Osaka regions7

6. Australia Platform

Acquired CIP, the leading logistics development / construction business in 2018

Completed Acquisition of Propertylink, which has A$1.8 billion of AUM

Largest shareholder of

Centuria12, which has A$7.3 billion of AUM

2. South Korea Platform

#1 largest owner of logistics

stock7

#1 development pipeline in

the Seoul Metropolitan Area7

5. Singapore Platform

#1 non-Temasek affiliated

industrial REIT platform9, which has S$4 billion of AUM10

Leading operator of 75

industrial properties11

Completed first ever REIT

merger in Singapore

1. The PRC Platform

#1 e-commerce landlord4

#1 development pipelines5

#2 largest portfolio of logistic

properties6

4. India Platform

Quickly emerged as one of the leading logistics developers in India

Formed c. US$1 billiondevelopment JV with a real estate investor based in Germany8

Over 2 million sqm GFA with MOUs signed since 2017

16.0

22.1

FY2018 FY2019

AUM

(US$ billion)

3

13

▪ Mar 2019 –Completed the acquisition of 100% of Australia-based PLG with AUM of US$1.2b (which also held stake in CNI REIT)

Notes:(1) Current equity commitment of US$699m; total commitment including upsize option is US$1.8 billion(2) Including overallotment option

▪ Mar 2019 –Acquired Sachiura, a prime parcel of land in Southern Yokohama for US$392m

▪ May 2019 –Owned Sabana REIT Manager (100% as at Jan 2020)

▪ Jun 2019 -Established RJLF III with equity commitment of up to US$1.8b1 with Singapore sovereign wealth fund and a leading European pension fund as anchor LPs

▪ Jan 2019 – A large Japanese conglomerate leased 200k sqm of space at Baraki DC

FY2018 AUM

US$16.0b

FY2019 AUM

US$22.1b

▪ Jan 2019 – Closed NCI Core Fund (RMB); disposed 7 BS properties which contributed to a US$16.5m gain

1st Nov 2019 -U$600m of new capital raised with a US$1.8b 2 IPO issue on Hong Kong Stock Exchange

▪ Nov 2019 – Increased stake in AIMS APAC REIT from 5% to 10%

▪ Nov 2019 – Purchased a prime 21-ha site in New South Wales, to be developed into ESR Horsley Logistics Park

▪ Nov 2019 – Established new US$240m mandate with China Merchants Capital Investment Co. Ltd (EALT) for Australia assets

▪ Dec 2019 – Established new US$94m mandate for core-plus business park and industrial assets (EOP IV) in Australia

▪ Jan 2020 – Signed new 72,392 sqm lease with Amazon at Kuki City, Saitama

▪ Jan 2020 – US$500m JV with GIC for development of logistics facilities in China

▪ Feb 2020 – Plans to build 76.84-acre logistics park in Sohna, New Delhi

▪ Feb 2020 – To invest JPY27b to develop ESR Yatomi KisasakiDistribution Centre – the largest facility in Greater Nagoya

▪ Feb 2020 – Issued S$225m 5.1% five-year notes

▪ Mar 2020 – Drawdown of US$250 mil three-year unsecured term loan at Libor +3%

Strategic Achievements In 2019 And YTD 2020Strong track record in growing AUM

▪ Jun 2019 –Disposed 18.1% stake in CIP REIT for US$100m which was acquired initially for US$92m (~9% gain)

14

Investment

Fund Management

Development

▪ Maintained high portfolio occupancy of 93%1

▪ Well-staggered lease expiry profile with WALE of 4.2 years2

▪ Strong leasing momentum with 2.0 million sqm leased across portfolio

▪ Achieved 5.0% rental reversion on renewed leases1

▪ Total AUM grew by ~38% or US$6.1 billion to US$22.1 billion3

▪ Total AUM is made up of (1) US$2.9 billion from balance sheet,

(2) US$12.4 billion of development funds and (3) US$6.8 billion from

core funds

▪ Fees from fund management increased 23% to US$167 million

▪ New development starts of US$2.0 billion

▪ Development completions of US$1.9 billion

▪ Landbank of over 3 million sqm across portfolio

▪ Total gross divestment value of US$490.7 million of assets recycled

from the balance sheet

Notes:(1) Based on stabilised assets on balance sheet(2) Based on assets on balance sheet and portfolio assets in funds and investment vehicles by leased area(3) Excluding ESR-GIC JV established in December 2019 and announced on January 2020

Grounded By Solid Operations In FY2019

15

GFA By Region1AUM By Region1

As of 31 December 2019Note:(1) GFA includes completed properties, properties under construction and GFA on land held for future development. AUM includes portfolio assets owned directly by ESR and portfolio assets held in

the funds and investment vehicles(2) Revenue excludes contribution from construction income

Revenue Contribution By Region1,2

The PRC21%

South Korea21%Japan

36%

Singapore13%

India2%

Australia7%

Well-diversified Across Key Markets Resilient to market changes and disruptions

The PRC31%

South Korea 15%

Japan29%

Singapore8%

India1%

Australia16%

The PRC40%

South Korea17%

Japan18%

Singapore10%

India8%

Australia7%

Goyang Logistic Park, Korea

16

Section 2 FY2019 Financial Overview

254

357

FY2018 FY2019

17

FY2019 Financials Key Highlights

Notes:(1) Adjusted EBITDA is calculated as profit before tax, adding back depreciation and amortization, exchange loss/(gain), finance costs, equity-settled share option, 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

(2) Including overallotment option

(US$ million)

Revenue

(US$ million)

Adjusted EBITDA1

(US$ million)

Profit After Tax

+40.6%

213

278

FY2018 FY2019

+30.8%

240

359

FY2018 FY2019

+49.8%

▪ Delivered strong earnings across key business segments

▪ Well-diversified contributions from ESR’s six markets

▪ Successfully raised US$600 million of new capital from a US$1.8 billion2 IPO anchored by cornerstone OMERS and leading global investors

40 35

85 1 2

4

21 10

18 46

26

38

11

38

1

2

FY2018 H1 2019 FY2019

Interest expense on bank loans Interest expense on other borrowings

Interest expense on Hana Interest expense on RCPS

Interest expense on bonds Interest expense on lease liabilities

2,318 2,439

3,251

1,460

2,8042,571

5811,010 884

FY2018 H1 2019 FY2019

Total equity Total debt and bank borrowings Cash and bank balances

18

(US$ million)

Note:(1) Excludes redeemable convertible preference shares (RCPS)

(%)

(%)

1,687

Net debt

879

Robust Balance SheetFurther deleveraged post-IPO; significant liquidity and balance sheet capacity maintained

(US$ million)

Net Debt1 Net Debt / Equity

Net Debt / Total Assets Finance Costs

1,793

37.9%

73.5%

51.9%

FY2018 H1 2019 FY2019

19.8%

30.2%

26.6%

FY2018 H1 2019 FY2019

Additional bank loans for PLG acquisition to be repaid post asset recycling into new funds

Redeemed in Nov 2019

Materially reduced borrowing costs post-IPO with issuance of S$225m notes in February 2020 and drawdown of US$250m unsecured term loan in March 2020

19

Capital Recycling Initiatives In FY2019Total gross divestment value of approx. US$490 million

Transacted Assets DetailsGross Divestment

Value1

Divestment of On-balance Sheet China

Properties to China NCI Core Fund

No. of properties: 7 US$276.7 million

Divestment of 11 Propertylink assets in

Australia ESR Australia Logistics Trust

(EALT)

No. of properties: 11 US$ 120.0 million

Divestment of industrial parks into Australia

ESR Office Partnership IV (EOP IV)

No. of properties: 2 US$ 94.0 million

Total: US$490.7 million

1

2

3

Note:(1) Amount based on value announced in IPO prospectus and company press releases; includes equity and debt

20Note:(1) Based on allocated share of profits from FVTPL funds and JV funds to each of Investment and Development segments

Income

Investments Fund Management Development

– Base / Asset management fees

– Development fees

– Acquisition fees

– Leasing fees

– Promote fees

– Completed B/S properties

➢ Rental income + revaluation gains

– Fund co-investments(1)

➢ Pro rata earnings

– Listed securities

➢ Dividend income

– Solar energy income

– B/S development profits

➢ Revaluation gains on U/C properties + disposal gain on sale

– Funds’ development profits(1)

– Construction income

– Direct costs for rental and solar energy income

– Allocated administrative expense– Allocated administrative expenses

– Construction costs

– Allocated administrative expenses

✓ Rental growth and high occupancy

✓ Cap rate compression

✓ High dividend payout from listed securities

✓ Strong Fund AUM growth

✓ Significant development pipeline in funds

✓ Promote Fee opportunity

✓ Significant development pipeline (B/S, funds)

✓ Track record of strong development profit margins

✓ Asset recycling from B/S or development funds into core funds / REITs

A B C

Expenses

Key Drivers Of Our Three Pillars Of Business

Key drivers

US$256 million US$132 million US$245 million

Total Segmental Result: US$558 million

US$75million corporate and other unallocated costs

Combined segmental EBITDA: US$633 million

40.5%

% contribution

20.8%

% contribution

38.7%

% contribution

D

FY2019Segmental

result

Cold Chain6%

Manufacturing 15%

Retail11%

Others8%

21

A Investment SegmentHealthy leasing with strong demand from e-commerce and 3PLs

Lease Profile By End User IndustryPortfolio Lease Expiry Profile By Area1

60% E-commerce and 3PL companies

FY2019 Lease Profile

by Area1

▪ Well-staggered WALE (by area) of 4.2 years2 and high occupancy of 93%3

▪ Healthy leasing activity in FY2019 with 2.0 million sqm of space2 leased across platform

Notes:(1) As at 31 December 2019(2) Based on assets on balance sheet and portfolio assets held in the funds and investment vehicles (3) Based on assets on balance sheet and stabilised assets

As at 31 Dec 2019 Assets on

Balance Sheet

Assets held in

FundsPortfolio

WALE (by area) 3.2 years 4.5 years 4.2 years

WALE (by income) 3.2 years 4.3 years 4.0 years

2%5%

4% 4% 3% 3%

7%

12% 15%

10%9%

26%

2020 2021 2022 2023 2024 2025 andbeyond

Assets on Balance Sheet

Assets held in Funds

9%

17%19%

14%

12%

29%

234

256

FY2018 FY2019

22Note:(1) Based on assets on balance sheet and portfolio assets held in the funds and investment vehicles

A Investment SegmentTop 10 tenants contribute ~38% of annual income

Portfolio Top 10 Tenants By Income1

(US$ million)

Investment Segmental Result

Diversified tenant base with good credit worthiness and focus on e-commerce companies

(%)

1.7%

1.7%

1.8%

2.1%

2.3%

3.0%

4.1%

4.5%

6.5%

11.1%

ROKIN

Samsung C&T

Askul Corporation

Amazon

Cai Niao

Mitsubishi FusoTrucks and Buses

Coupang

ZENY

SoftBankGroup Corp

JD.com

E-commerce related

55% of top 10 tenants’ FY2019 income contributed by e-commerce

related clients

1.2 1.92.9

1.6

4.8

6.8

9.2

9.3

12.4

31 Dec 2017 31 Dec 2018 31 Dec 2019

Balance Sheet Core Funds Development Funds

23

22.1

16.0

12.0

B Fund Management SegmentStrong AUM growth of 38.7% in FY2019

(US$ billion)

Evolution in Assets Under Management (Dec 2017 to Dec 2019)

With its strong track record, ESR is accelerating growth of its fund management business

Note:(1) Excludes ESR-GIC JV formed in December 2019, but announced in January 2020

1

110

132

FY2018 FY2019

136

167

FY2018 FY2019

24

(US$ million)(US$ million)

B Fund Management SegmentGrowth driven by M&A and new funds

Fund Income Fund Management Segmental Result

Strong recurring income base from fees collected from fund management

Fund Income FY2018 FY2019

% of AUM 0.8% 0.8%

% of invested capital 4.1% 3.4%

US$ billion FY2018 FY2019

Equity committed 5.1 6.5

Invested capital 3.3 4.7

Includes US$1.8 billion of uncalled capital

25

Notes:(1) The commitment represents the aggregate capital commitments to the fund or investment vehicle, as applicable, including capital commitments by third-party investors and the general partner or investment manager. Foreign

currency commitments have been converted into U.S. dollars based on: (i) the foreign exchange rate at the date of purchase for each investment; and (ii) the exchange rate that prevailed on 31 December 2019, in the case of uncalled commitments

(2) There was no drawdown for the fund year-to-date. JV agreement was signed in December 2019 and announced in January 2020

Inception Date CategoryFund AUM

(US$ million)

Capital

Commitments1

(US$ million)

Uncalled Capital

(US$ million)

Interest Held By

ESR (%)GFA ('000 sqm)

Ch

ina

e-Shang Star Cayman Limited May-14 Development 1,793 863 171 25.6 2,107

RCLF Jul-12 Development 824 440 - 2.3 1,234

China Invesco Core Fund Oct-17 Core 328 190 - 16.3 371

NCI Core Fund Jan-19 Core 275 159 - 10.0 325

Jap

an

RJLF II Apr-18 Development 1,548 577 143 0.0 587

ESR Japan Core Fund Dec-18 Core 995 387 0 17.0 421

RJLF III Jun-19 Development 1,608 686 584 20.0 254

Other investment vehicles Various Development 2,828 856 263 Various 873

So

uth

Ko

rea South Korea Development

Fund INov-15 Development 3,070 1,150 363 20.0 2,128

South Korea Core Fund Jul-18 Core/Core Plus 1,218 500 176 10.0 585

AMC Projects Core 265 NA NA NA 186

Sin

ga

po

re

ESR REIT 2006 REIT 2,331 NA NA 8.8 1,403

Sabana REIT 2010 REIT 653 NA NA 21.2 383

Au

str

ali

a

PEP Aug-16 Value Add 61 48 0.0 25.0 26

50 Ann PEP May-17 Core Plus 114 62 0.0 25.0 26

PAIP II Sep-15 Core Plus 239 99 0.0 17.5 195

PCII Nov-15 Core 24 10 0.0 7.5 10

POP III Feb-19 Core Plus 89 41 0.0 11.2 20

PACT Dec-17 Value Add 157 54 0.0 15.0 15

EALT Nov-19 Core Plus 180 121 55 20.0 94

EOP IV Dec-19 Core Plus 102 45 0.0 11.2 22

Ind

ia

ESR India Logistics Fund Nov-18 Development 487 222 100 50.0 767

TOTAL OF ALL FUNDS 19,189 6,510 1,855 12,032

New fund announced in 2020

Ch

ina

GIC Fund Dec-19 Development 0.02 500.0 500.0 51.0 646.6

Investment Vehicles Under ManagementContinue to attract best-in-class capital partners

B

0.3

1.61.5

1.7

FY2018 FY2019

Land held on Balance Sheet Land held in Funds

Mainly contributedby projectsin Japan

(Sachiura),China

(Dushangang),and Australia

0.1 0.1

1.8 1.8

FY2018 FY2019

Assets on Balance Sheet Assets held in FundsAssets held in Funds & Investment Vehicles

0.50.2

1.61.8

FY2018 FY2019

26

C Development SegmentContinue to be asset-light on balance sheet

Estimated Investment Value (US$ billion)

Development Starts

Estimated Investment Value (US$ billion)

Estimated Investment

Value

FY2018 FY2019

Assets on Balance Sheet 22% 11%

Assets held in Funds &

Investment Vehicles

78% 89%

2.12.0

1.91.9

Continue to leverage on third party capital to fund development starts

Development Completions Land Bank

GFA (million sqm)

Estimated Investment

Value

FY2018 FY2019

Assets on Balance Sheet 4% 5%

Assets held in Funds &

Investment Vehicles

96% 95%

GFA (million sqm) FY2018 FY2019

Land held on Balance Sheet 19% 49%

Land held in Funds &

Investment Vehicles

81% 51%

US$1.1 bil US$2.4 bil

3.3

1.8

Cost

Land held in Funds & Investment Vehicles

115

245

FY2018 FY2019

27

C Development SegmentUnderpinned by strong development pipeline

(mil sqm) MOU1Under

DevelopmentLand

The PRC 6.2 3.3 1.9 1.0

Japan 2.3 0.4 1.5 0.4

South Korea 3.2 1.8 0.8 0.6

Australia 0.4 0.01 0.03 0.4

India 1.9 0.5 0.5 0.9

Total 14.1 6.0 4.7 3.3

Development Pipeline

(US$ million)

Development Segmental Result

Secured and identified landbank to underpin sustainable and recurring development profits

Note:(1) MOUs as of 31 January 2020

(million sqm)

Mainly contributedby (i) disposal

gains coming from the recycling of seven balance sheet assets to NCI Core Fund, (ii) increase in share of profits from JVs and

associates, as well as (iii) fair value

gains on investment

properties under construction

28

Summary Of FY2019 Financial Performance

▪ Full-year revenue of US$357 million mainly contributed by higher rental income and fees from fund management segment

▪ Increase in segmental results (EBITDA) driven by both increases in rental and fee incomes, as well as gains realised through development

▪ Growth in core PATMI continues to be supported by strong recurring income such as fees collected from fund management

US$ million FY2018 FY2019 Variance

Revenue 254 357 40.6%

Investment 78 121 55.1%

Fund Management 136 167 23.0%

Development 40 69 71.8%

Segmental Results (EBITDA) 459 633 37.9%

Investment 234 256 9.6%

Fund Management 110 132 20.3%

Development 115 245 111.9%

Corporate and other unallocated expenses (58) (75) 30.3%

Total EBITDA 384 549 42.9%

PATMI 203 245 20.8%

Core PATMI (ex. revaluation from completed

properties)148 227 53.6%

29

Summary Of FY2019 Balance Sheet

▪ Healthy gearing at 26.6% post-IPO, mainly due to divestment of 11 Propertylink assets into EALT and 2 industrial parks into EOP IV

▪ Total debt and borrowings were higher in FY2019 due to additional loans taken for PLG acquisition which will be repaid post asset recycling into new funds

▪ Materially reduced cost of borrowings post-IPO

- Issued S$225 million five-year notes at 5.1% in February 2020 – reducing borrowing costs by 150bps since last issuance in April 2019, and two year addition to bond tenure

- Drawdown of US$250 million three-year unsecured senior term loan in March 2020 at Libor +3%

US$ million FY2018 H1 2019 FY2019

Variance

(H12019 vs

FY2019)

Variance

(FY2018 vs

FY2019)

Total Assets 4,432 5,946 6,352 6.8% 43.3%

Cash 581 1,010 884 (12.5%) 52.1%

Total debt and other borrowings 1,460 2,804 2,571 (8.3%) 76.0%

Net Debt 879 1,793 1,687 (5.9%) 91.9%

Net Debt/Total Assets 19.8% 30.2% 26.6% (3.6pp) 6.8pp

74-84 Main Road, Clayton, Victoria,

Australia

30

Section 4 Outlook

31

Current Market Conditions

Macro-environment

Global supply chain shocks due to COVID-19 outbreak

E-commerce is expected to be a long-term beneficiary from COVID-19

Impact

Attractive investment opportunities likely to emerge for ESR given its strong balance sheet

Outbreak of COVID-191 Almost all development projects on track despite 1-2 month delay for select projects

Liquidity in the market will remain tight

Leasing demand

▪ E-commerce tenants continue to seek new space requirements; other leasing may slow a bit in the short term

▪ Significant rebound and catch-up surge expected in the medium term

▪ Tenants expected to rebuild inventory in the long term

2

3

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Evolving macro trends (such as COVID-19 outbreak) driving fundamental structural changes to consumption patterns which will benefit the logistics sector

▪ Structural shift to how people shop and the growth of e-commerce replacing traditional retail fuels need for more efficient supply chain and logistics solutions

▪ Short-term disruption in tenants’ operations, but significant rebound and catch-up surge expected in the medium term

▪ No material impact on business sustainability and continuity from ESR’s tenants

Continued strong demand from best-in-class institutional investors to invest in logistics sector in Asia

▪ On track to grow fund management business through new funds set up in Korea, Australia and India in 2020

Healthy development pipeline going forward and an active capital recycling model

Continue to deepen presence in Asia Pacific region

▪ Rising domestic consumption across ESR’s six markets

▪ Significant undersupply of modern warehouses in the Asia Pacific region

With a robust balance sheet and strong liquidity, ESR is well-positioned to participate in M&A and partnership opportunities across the Asia Pacific region

ESR’s Strategy And Outlook

1

2

3

4

5

Kunshan Friend Park I, China

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Section 1 The End

ESR Chakan 1 Industrial & Logistics

Park, India

34

Section 5 Appendix

35

Year ended December 31

US$ million 2018 2019

Revenue 254 357

Cost of sales (44) (81)

Gross profit 210 276

Other income and gains 254 369

Administrative expenses (154) (198)

Finance costs (104) (180)

Share of profits and losses of joint ventures, net 65 93

Profit before tax 271 360

Income tax expense (58) (82)

Profit for the year 213 278

Attributable to:

Owners of the parent 203 245

Non-controlling interests 10 33

213 278

Statements Of Profit Or Loss

36

As at December 31

US$ million 2018 2019

Non-current assets

Property, plant and equipment and right-of-use assets 30 43

Investments in joint ventures 405 698

Investment in an associate 9 -

Financial assets at fair value through profit or loss 336 589

Financial assets at fair value through other comprehensive income 484 543

Investment properties 1,886 2,786

Goodwill and other intangibles 365 433

Other non-current assets 47 64

Total non-current assets 3,562 5,156

Current assets

Trade receivables 63 89

Prepayments, other receivables and other assets 225 129

Cash and bank balances 581 884

Assets held for sale - 94

Total current assets 869 1,196

Current liabilities

Bank loans and other borrowings 436 232

Lease liabilities 3 6

Redeemable convertible preference shares 297 -

Trade payables, accruals and other payables 119 230

Liabilities held for sale - 21

Total current liabilities 855 489

Net current assets 14 707

Total assets less current liabilities 3,576 5,863

Statements Of Financial Position

37

As at December 31

US$ million 2018 2019

Non-current liabilities

Deferred tax liabilities 192 211

Bank loans and other borrowings 1,024 2,339

Lease liabilities 6 17

Other non-current liabilities 36 45

Total non-current liabilities 1,258 2,612

Net assets 2,318 3,251

Equity

Equity attributable to owners of the parent

Issued capital 3 3

Perpetual capital securities 97 97

Equity components of redeemable convertible instruments 37 -

Other reserves 1,953 2,926

Non-controlling interests 228 225

Total equity 2,318 3,251

Statements Of Financial Position (Cont’d)

From capital raising to green initiatives and sustainable operations, ESR has been recognised for our industry-leading efforts - setting a benchmark in logistics facilities and related fund management around the APAC region

◼ Participation in the Global Real Estate Sustainability Benchmark (GRESB). In 2018, Korea achieved the 1st place ranking across 3 categories with overall GRESB Score of 90%.

◼ In addition, Australia obtained a score of 100 for their management practices and 83 under Monitoring & EMS versus GRESB average of 88 and 74 respectively

◼ ESG goals aligned with United Nations Sustainable Development Goals (SDGs)

◼ Adopting TCFD (The Task Force on Climate-Related Financial Disclosure) recommendations for climate risk analysis and disclosures

We believe ESR’s success relies on the quality and strength of our employees. This is why ESR has a commitment to attract and retain the best employees, enable their development and maintain an engaged, healthy and productive work environment.

◼ 100% of our employees have access to career training and education

◼ We promote diversity with almost equal portion of males and females at a ratio of 60:40

◼ Employees and stakeholders are encouraged to participate in local community service activities and charitable initiatives. In China, ESR is one of nine founders of Qin Charity Fund - an education fund focused on improving the education infrastructure for the children in the rural areas of China. To date, around 2,091 children have benefited from ESR’s donation

◼ Children’s day-care centres (“BARNKLÜBB”) are offered at facilities over 100,000 sqm in Japan to promote family-friendly practices. These services are provided free of charge

Environmental, Social and Governance Framework and Priorities

ESR focuses on three strategic pillars that represent ESG priorities important to our stakeholders

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People and Culture Corporate Performance

Keypillars

Fujiidera DC, Osaka Ichikawa DC, Tokyo

1st place with 90% score

Scored 100 for management and 83 for Monitoring & EMS

Stellar results in GRESB scoresESR children’s day-care centres

Environmental, Social and Governance Framework and Priorities (Cont’d)

ESR focuses on three strategic pillars that represent ESG priorities important to our stakeholders

39

Keypillars

Property Portfolio

ESR aims to develop and manage modern, state-of-the-art logistics facilities for the new economy and help create the backbone for 21st century commerce across the Asia Pacific Region

◼ Over 35MW of solar PV now installed across ESR’s portfolio globally

◼ Certified developments completed across our APAC portfolio including 9 LEED Gold certifications (Leadership in Energy and Environmental Design) from the US Green Building Council (6 China, 2 Korea & 1 Japan) and 2 LEED Silver (1 China & 1 Japan) LEED is the world's most widely recognized and used standard for measuring the performance of green buildings

◼ ESR Nanko DC II, Japan awarded ABINC certification (Association for Business Innovation in harmony with Nature and Community) for the first time ever to a logistics facility in Japan

◼ PERE ranked ESR 29th among the world’s leading private equity real estate firms and gave ESR global 2018 “Firm of the Year” awards for Australia (winner), Japan (second runner up) and India (second runner up)

◼ ESR India became a founding member of The Indian Green Building Council (IGBC), part of the Confederation of Indian Industry (CII)

Renowned awards across portfolioNanko DC II – Roof covered with solar panels

First logistic facility in Japan to be awarded ABINC certification

9 LEED Golds

2 LEED Silvers

Winner

2nd runner up

2nd runner upFirm of the Year

Optimizing the Sustainability Potential in New Developments and Creating Long Term Value

Roof-mounted Solar Panels to Create Additional Value and Long-term Impact

Solar Panel Rooftop in Nanko DC, JapanSolar Panel Rooftop in Beijing, China

Energy and resourceefficient

buildings

Reduce operating costs for occupiers

Minimisingthe use of resources

Lessen impact on communities

and the environment

ESR’s environmentally-friendly design and construction initiatives to incorporate energy saving and producing technologies and socially responsible design considerations

Meet and in some cases exceed locally and internationally recognised sustainable development and operational standards

1 2 3

4

56

7

8910

Green Design Initiatives to Minimize Environmental Impact through Innovations

1 Water Use Reduction: Faucets, Urinals, Dual-Flush Water Closet, Shower heads

2 LED lights for offices and warehouse space

3 Energy recovery ventilation

4 Low-Emitting materials (Adhesives, sealants, paints, coatings), regional material use

5 Thermal comfort design: Low-E coating windows

6 Materials & Resources: Storage and collection of recyclables

7 Non-CFC refrigerant management

8 Water efficient landscaping

9 Alternative transportation: bicycle storage, car pool

10 Low-emitting and fuel-efficient vehicle parking zone / car pool zone

Note:(1) Leadership in Energy and Environmental Design (LEED) certificate, Issued by U.S. Green Building Council

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Create economy benefit and provide long-term value for our tenants and capital partners

Case Study: Bucheon DC, the First LEED Gold(1) Certified Warehouse in Korea