Publicly Traded REITs
KORAMCO The One REITs is listed on KOSPI with Hana Financial Investment Building, an office building of Korea’s financial firm “Hana Financial Investment” located in Yeouido, Seoul, as the underlying investment. Hana Financial Investment Building, a landmark in Yeouido Financial District, is worth approximately KRW 549.6 billion in value with the gross floor area of 69,826. Its tenants include Hana Financial Investment, 3M Korea and Intel Korea, and the total vacancy rate is 1%.
KORAMCO The One REITs recorded the stock growth rate of approximately 20% within just one month after the IPO, which gained investors attention. With the stable operation of the asset, it pays out quarterly dividend of 6.2% per annum. KORAMCO The One REITs will seek for growth by continuously acquiring prime office buildings going forward.
KORAMCO Energy REITs joined the KOSPI market in August 2020, with the underlying asset of 187 gas stations nationwide acquired from SK Networks, a trading, energy and logistics company, with the aim of offering an annual dividend yield of 6.2% based on its offering price. Advanced countries such as US and Australia have many publicly traded REITs investing in gas stations. However in Asia, KORAMCO Energy REITs is the first and REITs investing mainly in gas stations. KORAMCO Energy REITs generates income mainly from its anchor tenant Hyundai Oilbank, and additional income from automotive repair shops and retail stores within the gas station sites.
It also implements an active value-add strategy to raise shareholder value and increase dividends. The REITs demolished existing gas stations and developed mixed-use properties, and also acquired large-scale logistics facilities as new assets in an effort to increase rate of return. As result, it recorded an annual stock growth rate of 33% and an annual dividend yield of 7.6%.
E REITs KOCREF
link to the websiteE REITs KOCREF is a retail REITs that invests in five best performing stores with the highest sales revenue operating by E-Land Retails, the biggest outlet mall operator in Korea. It targets return of approximately 8% per annum. E REITs KOCREF directly owns three top-tier New Core Outlet stores operated by E-Land Retail, and indirectly owns and manages two 2001 Outlet stores.
These properties signed a master lease contract with E-Land Retail that lasts at least 15 years, which ensures a stable source of profits.
Moving further, this REIT is planning to grow into a super-scale anchor REITs worth more than KRW 1.5 trillion in total assets by investing in highly profitable commercial properties located in core business districts in Seoul and the capital area through secondary equity offering and issuance of corporate bonds.