Mirae Asset 'TIGER REITs Real Estate Infrastructure' Changes Dividend Payment Method

Mirae Asset Global Investments announced on the 26th that it will change the dividend payment method of the TIGER REITs Real Estate Infrastructure ETF to an equal payment method starting this month.

The TIGER REITs Real Estate Infrastructure ETF is the largest domestic REITs ETF with net assets of 624.9 billion KRW as of the 25th. It selectively invests in high-quality stocks among domestic listed REITs.

Investors can invest in various real estate sectors such as offices, retail, and hotels with a small amount. They can earn capital gains from the increase in real estate asset value as well as income from rents. Since switching to a monthly dividend type in November 2022, it has established itself as a representative means of REITs investment.

Mirae Asset Global Investments decided to pay monthly dividends evenly at around 33 KRW per share starting this month for individual investors. Due to the nature of REIT stocks with dividend record dates dispersed monthly, the dividend rate varied each month previously; however, since its listing in 2019, it has steadily built a track record of dividend payments over the past five years, making it possible to estimate the annual expected dividend rate.

According to the new payment method, the TIGER REITs Real Estate Infrastructure ETF will pay a fixed level of dividends every month through active cash management within the fund, sourced from REIT dividends. Based on dividends received at the beginning of the year and the 2025 dividend guidance of the holdings, a dividend yield in the 9% range is expected. Investors who previously found it difficult to utilize the ETF due to unpredictable monthly dividend amounts are expected to be able to receive stable cash flows every month and use them reliably.

In addition to changing the dividend payment method, Mirae Asset Global Investments is exploring various measures for TIGER REITs Real Estate Infrastructure ETF investors. To increase returns, it is reviewing index methodology revisions and the inclusion of re-invested REITs due to changes in REIT-related legislation. Recently, the REITs market conditions have improved due to expanded shareholder returns and cost structure improvements from interest rate declines.

Han Yoo-jin, manager of the Strategic ETF Management Division at Mirae Asset Global Investments, said, "The change in the dividend payment method will increase the predictability of cash flows received through the TIGER REITs Real Estate Infrastructure ETF," adding, "Recently, REITs offer stable dividends in the 8-9% range annually, along with potential capital gains from stock price increases."

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