Mapletree's profits down 18% to $1.78b in FY2020

It was driven by lower asset revaluation and disposal gains.

Mapletree Investments saw its profit after tax and minority interests (PATMI) fall 18% YoY to $1.78b in FY2020 from $2.16b in FY2019, a press release revealed. Group revenue inched up 1% YoY to $3.88b from $3.82b over the same period.

The decline in PATMI was driven by lower asset revaluation and disposal gains. Mapletree also stated that it delivered the highest recurring earnings of $752m in five years, which shows a 5% YoY growth.

Due to lower asset revaluation and disposal gains, PATMI dropped by 18% from the historical peak of $2.16b recorded in the previous financial year.

“A significant proportion (~35% of AUM) of our portfolio is in logistics and data centres which are
relatively less affected by the pandemic. This has cushioned our expected reduction in profitability going forward,” said Hiew Yoon Khong, Mapletree Group CEO.

Meanwhile, its earnings before interest and tax plus share of operating profit or loss of associated companies and joint ventures (EBIT+SOA) rose 10% YoY to $2.31b, thanks to the stable performance of the group’s four REITs, contributions from Europe and the US logistics and data centre businesses, and fees from their capital management business.

ROIE jumped to 21.6% from 10.4% in FY2019 as a result of higher disposal gains from the divestment of Mapletree Bay Point in Hong Kong SAR in May 2019 and Mapletree Business City II (MBC II) in Singapore last November 2019.

The group’s AUM also edged up to $60.5b from $55.7b in FY2019.