“Patmi was in line [at 51% of our FY2023 estimate of US$594 million] but down 26% y-o-y due to lower fair value gains, divestment gains, and higher interest expenses,” notes HSBC in a report. “The Ebitda for fund management which now makes up 55% of total segmental Ebitda compared with less than 25% at the IPO, managed to rise by 14.2% y-o-y or 19% y-o-y excluding promotes, given the higher fee revenue and Ebitda margin,” the HSBC report observes. And, despite the depreciation of key Asian currencies such as yen and RMB against ESR’s reporting currency in USD, AUM increased to US$147 billion as at June 30 compared to US$145 billion as at December 31, 2022.
During a recent results’ briefing by ESR Group, Executive Chairman Jeffrey Perlman was asked how the removal of Sabana Industrial REIT’s manager Sabana Real Estate Investment Management (SREIM) affects ESR.
In 1HFY2023, ESR reported an Ebitda of US$550 million, down 18% y-o-y. However, fund management Ebitda rose 14% y-o-y to US$329 million on higher fee revenues, cost efficiencies and economies of scale, and fund management margins rose by 400 bps y-o-y to 82%. Patmi declined by 26% y-o-y to US$304 million.
