[Click eStock] "Shinhan Alpha REITs, Continuous Inclusion of Quality Assets... Growth Potential Up"

[Asia Economy Reporter Jihwan Park] Ebest Investment & Securities evaluated on the 17th that Shinhan Alpha REITs is expected to have high growth potential due to continuous acquisition of high-quality office assets. Accordingly, it presented a 'Buy' investment opinion and a target price of 9,000 KRW.

Researcher Seryeon Kim of Ebest Investment & Securities explained, "Despite the impact of the novel coronavirus disease (COVID-19), the office REIT Shinhan Alpha REITs has shown remarkable stock price outperformance compared to its peers (PEER)," adding, "Due to the nature of office assets, it avoided the profit decline risk caused by reduced offline traffic seen in retail REITs, and growth potential was expected from additional office building acquisitions."

Shinhan Alpha REITs completed acquisitions of Twin City Namsan Office for 238.6 billion KRW in August and Shinhan El Tower Office for 279.8 billion KRW in September through respective REITs. Despite COVID-19, considering the locational advantages and stable profitability of Twin City Namsan and Shinhan El Tower, it is evaluated that long-term capital returns are expected to increase.

Researcher Seryeon Kim emphasized, "Amid the widespread impact of COVID-19 on the real economy, the nature of office assets with long-term lease contracts meant that rental income was not significantly affected, which is positive," adding, "In particular, the occupancy rate of Shinhan Alpha REITs' assets is maintained at 99.8%, showing a performance edge compared to peers, which leaves a stronger momentum for stock price increase."

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