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Temasek’s Mapletree posts first loss since 2004 on office slump

FILE PHOTO: Signage for Mapletree Investments Pte is displayed atop the company's building in Mapletree Business City in Singapore, on Thursday, June 13, 2019. Revenue edged down to S$2.8 billion. (Photo: Wei Leng Tay/Bloomberg)
FILE PHOTO: Signage for Mapletree Investments Pte is displayed atop the company's building in Mapletree Business City in Singapore, on Thursday, June 13, 2019. Revenue edged down to S$2.8 billion. (Photo: Wei Leng Tay/Bloomberg) (Bloomberg)

By Low De Wei

(Bloomberg) — Mapletree Investments Pte, a real estate firm owned by Singapore state investor Temasek Holdings Pte, recorded a loss for the first time in two decades, after bearing the brunt of a global commercial property downturn.

The loss was S$577.2 million ($428 million) for the fiscal year ended in March after accounting for tax and non-controlling interests, reversing a S$1.2 billion profit from a year earlier. Revenue edged down to S$2.8 billion.

The firm said prolonged work-from-home trends hit commercial properties in most Western markets, hurting its office portfolio in the US, Europe and Australia. A hike in interest rates also led to revaluation losses. The Singapore-based firm is the latest in a line of major property investors that are suffering from the downturn in global commercial properties.

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It last recorded a net loss in the fiscal year that ended in March 2004.

While the company has pivoted to markets including Japan, a sizable chunk of Mapletree’s S$77.5 billion assets under management are in North America and China.

Mapletree said it will prioritize core sectors including logistics, student housing, data centers and offices, and start more development funds. It will also explore opportunities to acquire prime office space in gateway cities that are less affected by remote work.

©2024 Bloomberg L.P.