NH Prime REITs, First Dividend After Listing '127 KRW Per Share'

Dividend amount exceeds 5% annualized based on the public offering price (5,000 KRW)
Resolution to include additional assets such as overseas prime office income securities

[Asia Economy Reporter Kangwook Cho] NH Nonghyup Financial announced on the 28th that NH Prime REIT Management Co., Ltd. (NH Prime REIT), held a board meeting on the 26th and resolved to pay the first dividend since its listing last December.

The dividend amount is 127 KRW per share, which exceeds 5% annually based on the public offering price (5,000 KRW). The dividend will be paid in August after the resolution at the regular shareholders' meeting scheduled for July 28.

At this board meeting, a resolution was also made regarding the additional asset incorporation of NH Prime REIT. Since the listing of NH Prime REIT last December, NH Nonghyup REITs Management has reviewed more than 13 properties for additional asset incorporation and decided to acquire real estate revenue securities of overseas prime-grade offices with high creditworthy tenants.

The newly incorporated assets include ▲ 195 Broadway Building (located in New York, USA), with global luxury brand Gucci as a major tenant, ▲ EQHO Tower (located in Paris, France), with global accounting firm KPMG and Banque de France as tenants, and ▲ OP Financial Group Headquarters Building (located in Helsinki, Finland), long-term leased by Finland's largest financial company OP Financial Group and the Finnish Tax Administration.

Despite the impact of COVID-19, NH Prime REIT shows a current vacancy rate of about 1% on average for the four incorporated assets, which is significantly lower compared to the average market vacancy rates of 8.8% in downtown and 4.8% in Gangnam.

Lee Jong-eun, Head of the Investment Management Division at NH Nonghyup REITs Management, who oversees NH Prime REIT operations, said, “The prime-grade office assets composed of high-quality tenants minimally affected by COVID-19 and the high dividend yield exceeding 5% annually are strengths of NH Prime REIT. This first settlement will serve as an opportunity to confirm NH Prime REIT’s stability in the market,” adding, “As incorporated assets expand, opportunities for capital gains from sales will also increase.”

He emphasized, “Especially in the second half of the year, through a paid-in capital increase, the completion of a prime-grade asset portfolio spanning domestic and overseas markets is expected to expand market capitalization, significantly improving liquidity and trading volume. We also plan to pursue inclusion in the global REIT index.”