[Click eStock] "Shinhan Alpha REITs Incorporates Samsung Fire & Marine Insurance Yeoksam Building... Expectation of Expanded Dividend Income"

[Asia Economy Reporter Park Jihwan] Samsung Securities forecasted on the 5th that Shinhan Alpha REITs will continue the trend of rising dividend yields, as it incorporated its sixth prime asset. The investment opinion was maintained as 'Buy' with a target price of 9,200 KRW.

Lee Kyungja, a researcher at Samsung Securities, explained, "The day before, Shinhan Alpha REITs announced a decision to purchase a shared stake in the Samsung Fire & Marine Insurance Yeoksam Building for 158.3 billion KRW through Jari REITs," adding, "The seller is KB Real Estate Trust, which holds 50% of the building's shares, while the remaining 50% is held by the National Tax Service."

It is analyzed that dividends are expected to increase from next year. Shinhan Alpha REITs resolved a dividend per share (DPS) of 161 KRW in March this year, a 5.2% increase compared to the previous period, following the inclusion of Euljiro L Tower and Twin City in the fourth quarter of last year. The researcher stated, "It shows a continuously upward dividend trend without pause," and predicted, "Next year's DPS is expected to rise by about 5%."

Shinhan Alpha REITs has completed a portfolio covering major domestic office districts, including one in the Pangyo area, four in the CBD, and one in the GBD. In particular, the GBD market is analyzed to be reorganized mainly around IT tenants, making it the market with the lowest vacancy and demand exceeding supply. He said, "Shinhan Alpha REITs' incorporated assets number six, and it has emerged as a large REIT with consolidated assets worth around 1.6 trillion KRW."

The researcher evaluated, "Shinhan Alpha REITs' weighted average lease expiry (WALE) is 4.7 years, indicating a long-term lease structure despite being an office REIT, and even if only the signature asset, Krafton Tower, is reflected at market value, the net asset value (NAV) is 481 billion KRW, with a per-share value of 9,200 KRW, meaning the current stock price is undervalued."

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