Mapletree Investments sinks into the red with S$577.2 million net loss on valuation decline

MAPLETREE Investments posted a net loss of S$577.2 million for the financial year ended Mar 31 amid industry headwinds, compared with a S$1.2 billion net profit last year.

This comes as a high-interest environment led to expansion in real estate capitalisation rates in most markets, which in turn resulted in revaluation losses for the year, said the global real estate giant on Tuesday (May 28).

A prolonged work-from-home trend has also has undermined commercial properties’ value in most Western markets. Mapletree noted a substantial decline in assets’ valuation within the office portfolios in the US, Europe and Australia markets, especially.

Revenue for the year was almost flat at S$2.8 billion, compared with S$2.9 billion in the previous financial year.

Recurring earnings were down 8.2 per cent to S$715.6 million from S$779.7 million, while total assets under management (AUM) gained slightly to S$77.5 billion, from S$77.4 billion a year earlier.

The group highlighted that it maintained prudent hedging practices and improved its operating performance to optimise earnings, and mitigated revaluation pressures with contributions from its better performing assets in Asia, as well as logistics.

As at end-March, the group’s cash reserves and committed undrawn facilities stood at S$12.3 billion, and net debt-to-equity ratio was lowered to 59 per cent from 64 per cent the previous year.

“Logistics remained as the group’s largest asset class at 41 per cent of overall AUM,” said the group, adding that data centres, also a core asset class, made up 8 per cent of its overall AUM in the financial year.

Mapletree said it aims to navigate the challenging landscape with a prudent investment approach, focusing on core sectors – logistics, student housing, data centres and offices – in key markets with growth potential, while maintaining active capital management.

Group chief executive officer Hiew Yoon Khong said: “Looking ahead, with a strong balance sheet, the group will continue to prioritise and strengthen our focus on core sectors by embarking on more development projects, launching more development funds, and continuing our operational expertise to deliver high-quality assets that will generate consistently attractive returns.”