[Asia Economy Reporter Lim Jeong-su] Koramco Asset Trust ranked first in sales in the real estate trust industry for the first time since LF became its major shareholder.
According to the electronic disclosure by the Korea Financial Investment Association on the 1st, Koramco Asset Trust's operating revenue in the first half of this year grew about 77% compared to the same period last year, reaching 117.6 billion KRW, the highest sales among the 14 real estate trust companies.
A Koramco Asset Trust official explained, "Koramco's strength lies in its diversified business portfolio consisting of REITs, real estate funds, and real estate trust sectors," adding, "Efforts to increase profits by adjusting the proportion of each business according to real estate market trends and to proactively avoid risks have been reflected in the results."
Following Koramco Asset Trust, Korea Land Trust recorded sales of 100.8 billion KRW, surpassing 100 billion KRW, while Korea Asset Trust (85.5 billion KRW), KB Real Estate Trust (81.4 billion KRW), and Hana Asset Trust (72.6 billion KRW) also ranked high in operating revenue.
The overall industry sales scale also increased. The total operating revenue of domestic real estate trust companies in the first half of this year was 780 billion KRW, up 19% compared to the same period last year. New orders also hit a record high, approaching 1 trillion KRW as of the first half. It is expected to surpass 2 trillion KRW annually for the first time in history this year.
Recently, the real estate trust industry appears to be enjoying the portfolio effect of increasing profits by combining new businesses with their competitive core areas. Korea Land Trust and Korea Asset Trust are expanding their businesses into REITs and urban redevelopment projects in addition to their main existing business of loan-type land trusts. Hana Asset Trust and Daishin Asset Trust are increasing profits by starting loan-type businesses.
In the case of Koramco Asset Trust, revenue from the REITs sector accounted for half of the total operating revenue. The timely sale of assets from the first blind fund set up in 2018 and the partial sale of gas stations located in provincial areas by Koramco Energy REIT positively impacted profits. Additionally, in the real estate fund sector, sales of the Yongin Brick Logistics Center and Yeouido Shinsong Building generated profits of about 16 billion KRW.
In the real estate trust sector, the results of efforts to stabilize management by reducing the risks of loan-type trusts are becoming visible. By increasing the proportion of relatively low-risk responsibility-completion type management trusts and redevelopment projects, profits of about 12 billion KRW were achieved.
Jung Jun-ho, CEO of Koramco Asset Trust, said, "Synergy is emerging with the major shareholder who has a solid financial structure," adding, "Based on LF's high credit rating, we will discover growth engines in new areas to simultaneously enhance stability and profitability."
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