Koramco Records Highest Operating Revenue Among Real Estate Trust Companies in First Half of the Year

Approaching 70% of Last Year's Sales in Half a Year
Operating Revenue, Operating Profit, ROA, and NCR All Increased Compared to Last Year

[Asia Economy Reporter Kwangho Lee] Koramco Asset Trust has entered its second heyday by recording the highest operating revenue (sales) in the real estate trust industry in the first half of this year.

According to the electronic disclosure by the Korea Financial Investment Association on the 13th, Koramco's operating revenue in the first half of this year was 131.8 billion KRW, a 12% increase compared to the previous year, ranking the highest among 14 domestic real estate trust companies. The second place was Korea Land Trust with 90.1 billion KRW.

Koramco's operating profit reached 63.5 billion KRW, double that of the previous year. ROA (Return on Average Assets) was 16.1%, and NCR (Net Capital Ratio for Operations) was 663%, increasing by 11% and 60% respectively compared to the previous year.

The total operating revenue of the 14 real estate trust companies in the first half was 890 billion KRW, growing 14% year-on-year. Last year, the total operating revenue of real estate trust companies also increased by about 19% compared to the previous year.

Woo Yong-min, head of PR at Koramco Asset Trust, explained, “We lowered business risks by adjusting the portfolio ratio between trust business and REITs, and expanding development projects through funds and REITs that can create synergy between business sectors helped improve profitability.”

In the REITs sector, which accounts for a large portion of Koramco’s revenue, the business is expanding from existing physical asset management to development projects. Currently, they are directly developing and selling a luxury residential officetel, ‘Insi Gna Banpo’, in Banpo, Seoul, and earlier this year, they developed a mixed-use office building, ‘K-Square Gangnam 2’, near Gangnam Station on Line 2, which achieved full occupancy immediately upon completion.

Hong Eun-gi, head of management support at Koramco Asset Trust, said, “While it is significant that Koramco ranked first in operating revenue, attention should be paid to the fact that all financial indicators such as operating profit, ROA, and NCR have stabilized and grown. Efforts to improve the structure in the real estate trust sector, a major pillar of the company’s growth, are bearing fruit, and synergy among business sectors is expanding, laying the foundation for greater growth.”

This content was produced with the assistance of AI translation services.