[Click eStock] "Lotte REITs, Dividend Yield Expected at 5.3% This Year"

[Asia Economy Reporter Minji Lee] NH Investment & Securities maintained a buy rating and a target price of 7,300 KRW for Lotte REITs on the 28th.

In March this year, Lotte REITs completed a paid-in capital increase, securing a total of 14 stores (with assets worth 2.3 trillion KRW), including 6 department stores, 4 marts, 3 outlets, and 1 logistics center. The newly added assets through this capital increase include 2 department stores (Jungdong and Asan), 2 marts (Gyeyang and Chuncheon), 1 outlet (Icheon), and 1 logistics center (Gimpo), totaling approximately 800 billion KRW. Minjae Lee, a researcher at NH Investment & Securities, stated, “The inclusion of the logistics center indicates the potential for various assets owned by the Lotte Group to be incorporated in the future.”

The first quarter performance this year showed operating revenue of 20.7 billion KRW and operating profit of 12.7 billion KRW, growing 8% and 6% respectively compared to the same period last year. The distributable profit is estimated to have increased by 6.7% to 14.7 billion KRW during the same period.

Operating revenue and operating profit are expected to reach 95 billion KRW and 63 billion KRW respectively, with the effect of newly incorporated assets from the first quarter becoming fully realized from the second quarter, leading to continued profit growth.

Based on the current stock price, the dividend yield for this year is projected at 5.3%. Researcher Minjae Lee explained, “Considering the higher dividend yield compared to other companies holding different assets within the industry and the continuous incorporation of assets centered around the Lotte Group, we maintain Lotte REITs as the top preferred stock in the sector.”

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