[Click eStock] "Shinhan Alpha REITs, Showing the True Investment Value of Growth-Type REITs"

Hana Financial Investment Issues 'Buy' Rating and 11,000 Won Target Price... Closing Price on 25th at 6,930 Won

[Asia Economy Reporter Kum Boryeong] It has been analyzed that Shinhan Alpha REITs is demonstrating the true essence of growth-type REIT investment.

According to Hana Financial Investment on the 26th, Shinhan Alpha REITs established Shinhan Alpha Gwanggyo REITs in March this year and acquired the Daeil Building located on Namdaemun-ro for 68 billion KRW.

Gwanggyo REITs is a subsidiary REIT of Shinhan Alpha REITs. Researcher Chae Sangwook of Hana Financial Investment explained, "Shinhan Alpha REITs conducted a paid-in capital increase of 4.7 million shares to incorporate the Daeil Building. The new share issuance price was 5,860 KRW, and the existing shareholders' subscription on May 20 was fully subscribed, securing 27.5 billion KRW in raised funds," adding, "The scheduled listing date for the new shares is June 9."

Immediately after acquisition, the Daeil Building secured high-quality tenants such as Louis Vuitton and Beacon Korea, reaching a 100% occupancy rate. The weighted average lease expiry (WALE) of tenants is 2.2 years, and annual lease and management fee increase contracts of 2-3% have been signed, indicating continuous profit growth is expected.

Shinhan Alpha REITs started with the Pangyo Krafton Tower in 2018 and incorporated Yongsan The Prime last year. The portfolio's characteristics include office buildings located in prime transit areas and having secured high-quality tenants.

Researcher Chae said, "The office market, which is the real estate incorporated by Shinhan Alpha REITs, is a product group with high vacancy risk. However, the Pangyo Krafton, Yongsan The Prime, and Daeil Building held by Shinhan Alpha REITs show high occupancy rates of 95.4%, 99.2%, and 100%, respectively. Especially in Pangyo, the vacancy rate is maintained at the lowest nationwide level of around 1%, indicating high stability," and analyzed, "Among domestic listed REITs, the most attractive point is that it advocates growth-type and continuously incorporates more than one real estate property annually."

Hana Financial Investment gave Shinhan Alpha REITs a 'Buy' rating with a target price of 11,000 KRW. The closing price on the 25th was 6,930 KRW.