ESR Group (1821) H2 2024 earnings summary

Executive summary

• Revenue declined 26.7% year-over-year to US$639.0 million, with a net loss of US$726.3 million versus a profit of US$268.1 million in FY2023, mainly due to non-cash revaluation losses and lower promote and transaction-based fees.

• Fund management platform remains resilient, with recurring core asset fee income up 6.6% year-over-year despite market headwinds.

• Major non-cash losses stemmed from asset revaluations, non-core divestments, and impairments, particularly in Mainland China and from the Cromwell and USHT investments.

• The Group completed US$1.1 billion in asset syndications and raised US$5.4 billion in capital, with New Economy capital raise up 53% year-over-year.

• No final dividend was recommended for FY2024; share repurchases totaled US$72 million.

Financial highlights

• Revenue: US$639.0 million (down 26.7% year-over-year); Fund management EBITDA: US$277.5 million (down 52.1%).

• Net loss: US$726.3 million (vs. profit of US$268.1 million in FY2023); EBITDA loss: US$415.6 million.

• Adjusted EBITDA: loss of US$79.6 million (vs. profit of US$885.3 million); Adjusted PATMI: loss of US$359.5 million.

• Cash: US$914 million; net debt/total assets: 35.3% (up from 30.7%).

• Total assets: US$14.8 billion (down from US$16.2 billion); total equity: US$7.5 billion.

Outlook and guidance

• Management expects to capture growth in logistics real estate, data centers, and infrastructure, despite a challenging macroeconomic environment.

• The Group is progressing on a proposed privatisation by a consortium, with an independent adviser appointed and pre-conditions being fulfilled.