[Click eStock] "Lotte REITs, Stable Dividend Income Still Attractive"

[Asia Economy Reporter Park Ji-hwan] NH Investment & Securities maintained its 'Buy' rating and target price of 75,000 KRW for Lotte REITs on the 5th, highlighting its stable dividend appeal.

Lee Min-jae, a researcher at NH Investment & Securities, explained, "Since the end of October last year, most REIT stocks including Lotte REITs have fallen by more than 15% on average," adding, "This is due to valuation pressure and supply-demand issues caused by increased interest following Lotte REITs' listing."

However, considering that the dividend yield based on this year's performance and major listed REITs has risen to 5-6%, it is still considered an attractive range. In particular, the REITs market this year is expected to see continued listings and additional tax benefits.

Kendall Square (logistics center, 700 billion KRW), Belgium REITs (office, 400 billion KRW), Koramco Energy Plus (gas stations, 200 billion KRW), and a total of six companies with a combined public offering size of about 2 trillion KRW are scheduled to be listed.

Additionally, investors in public offering REITs and real estate funds are expected to receive additional tax benefits starting in March. A separate taxation of 9% on dividend income will be applied for holdings up to 50 million KRW held for three years. Currently, a tax rate of 14% (excluding resident tax) is applied.

Researcher Lee Min-jae evaluated, "Stable profits remain valid due to the excellent procurement capability with an average interest rate of only 2.09% and an annual rent increase rate of 1.5% agreed with Lotte Shopping."

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