ESR Group plunges into US$57.9m loss in H1
The group attributed the loss to non-cash adjustments.
ESR Group dived in the red in H1 2024, recording a US$57.9m loss.
The H1 result is a reversal from its adjusted PATMI of US$303.8m in H1 2023. In the same period, the group also suffered a 31.4% YoY decrease in revenue, dropping to US$312.5m, due to a 37.0% YoY lower management fee of US$253.7m.
In a bourse filing, the asset manager attributed its loss to “non-cash adjustments and write-down tied to non-core divestments or near-term divestments, negative fair value movements and absence of promote fees.”
The group, however, underscored that these factors are "reflective of current market conditions, including the prolonged high interest rate environment, muted capital partner transaction activity, and continued macroeconomic softness in China."
The group also assured shareholders that its "underlying business remains healthy."
"The board is confident in the group’s ongoing strategic direction and core operating earnings," ESR Group said.