Mapletree Posts $427M Loss as Global Office Assets Take Valuation Hit

Singapore’s Mapletree reported a net loss of S$577.2 million ($427.7 million) for its fiscal year to the end of March, reversing a year-earlier net profit of S$1.1 billion, as the real estate investor marked down asset values amid a global upturn in interest rates.

A substantial portion of the valuation decline stemmed from office properties in the US, Europe and Australia, Mapletree Investments said Tuesday in a release. The Temasek Holdings-owned firm cited the prolonged work-from-home trend as having a negative impact on commercial properties in most Western markets.

Recurring net profit, which excludes revaluations and one-time charges, fell 8.2 percent year-on-year to S$715.6 million. CEO Hiew Yoon Khong credited Mapletree with delivering a “resilient performance” by adapting to the uncertain market and maintaining operational, financial and investment discipline.

“Our assets under management held steady at about S$77.5 billion with the completion of acquisitions and development projects in the logistics, office and data centre sectors across Australia, China, India, Japan, South Korea and Vietnam,” Hiew said.

Logistics Still a Winner

Contributions from better-performing assets in Asia and logistics properties helped mitigate revaluation pressures, according to Mapletree.

Logistics remained the firm’s largest asset class at 41 percent of AUM. Mapletree made its first foray into the logistics market of Japan’s third-largest island of Kyushu with the development of a warehouse near Fukuoka. The first phase of Mapletree Chikushino Logistics Centre provides 110,744 square metres (1.2 million square feet) of total floor area.

Mapletree also secured its first industrial land purchase in India’s Chennai and completed the development of 17 logistics parks in China during the fiscal year.

In the buzzy field of data centres, which made up 8 percent of AUM, the firm’s sponsored Mapletree Industrial Trust marked its entry into Japan with the acquisition of a newly built Osaka facility for JPY 52 billion ($370 million).

Core Sector Focus

Looking ahead, Mapletree plans to prioritise core sectors like logistics, data centres, student housing and offices, focusing on key markets with growth potential.

Mapletree this month announced the closing of its second Japan logistics development fund with a goal of achieving assets under management of over JPY 110 billion ($710 million) after full deployment and completion of projects. Just the firm’s third-ever fund targeting the country, Mapletree Japan Investment Country Private Trust is seeded with three development projects sourced from the sponsor and located in major metro areas.

In April, Mapletree expanded its global portfolio of student housing with the acquisition of 31 purpose-built student accommodation assets in Europe from its compatriots at Cuscaden Peak Investments in a $1.3 billion deal.