Mapletree posts loss as office values decline
Mapletree Investments has fallen into the red, with elevated interest rates and “prolonged working from home” trends in the US, Europe and Australia markets cited as the main causes.
The Singapore-based group posted a net loss of S$577.2m (£335.2m) for the year ended 31 March 2024, declining from a S$1.2bn net profit for the previous year.
Revenue stayed mostly flat at S$2.8bn, with assets under management holding steady at around S$77.5bn.
Mapletree Investments has fallen into the red, with elevated interest rates and “prolonged working from home” trends in the US, Europe and Australia markets cited as the main causes.
The Singapore-based group posted a net loss of S$577.2m (£335.2m) for the year ended 31 March 2024, declining from a S$1.2bn net profit for the previous year.
Revenue stayed mostly flat at S$2.8bn, with assets under management holding steady at around S$77.5bn.
Mapletree said the high interest rate environment globally had resulted in expansion in real estate capitalisation rates in most markets, leading to revaluation losses for the year.
It also pointed to a “substantial portion of asset valuation decline” within its office portfolios in the US, Europe and Australia markets, adding that the rest of the asset classes have been “relatively stable”.
The group said it had maintained “prudent hedging practices and improved its operating performance to optimise its earnings”, while revaluation pressures have been offset by “better-performing” assets in Asia, as well as logistics.
Looking ahead, Mapletree said it will focus on a “prudent and selective investment approach” to four core sectors: logistics, student housing, data centres and offices.
Last month, it bought 31 student accommodation properties located in 19 cities in the UK and Germany for £1bn from Cuscaden Peak Investments.
Mapletree said its strategy was “to capitalise on the sector’s defensive characteristics” while expanding its presence in the UK, the US, Europe and Australia, which remain “underserved by quality student housing assets”. The acquisition, which closed after its 2023/24 financial year-end, brings its assets under management to S$79.1bn.
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