[Eland Asset-backed IREIT KOREIT, 280 Billion KRW Refinancing]

Real Estate Secured Loans + Secured Bonds Issuance
Lowering Borrowing Interest Costs to Expand Dividend Rate to 7.8%

[Asia Economy Reporter Lim Jeong-su] Koramco Asset Trust announced on the 29th that it has successfully completed the refinancing of IREIT KOREA REIT and will expand the dividend rate.

IREIT KOREA REIT is a listed REIT holding the top 5 retail assets by sales operated by E-Land Retail, including New Core Outlet Pyeongchon Branch and NC Department Store Yatap Branch. On the 7th of next month, it plans to repay borrowings by issuing real estate secured loans worth 165 billion KRW and secured bonds worth 115 billion KRW. The interest rate on the new borrowings is in the low 3% range, which is more than 1 percentage point lower than the existing borrowing rate (in the 4% range) at the time of listing.

Through this refinancing, IREIT KOREA REIT will reduce borrowing costs by about 2.4 billion KRW annually and be able to pay all of this as dividends. Previously, dividends were paid at about 7% based on the public offering price, but with this refinancing, the dividend rate will be raised to about 7.8%. In terms of amount, this secures dividend payment resources of about 389 KRW per share.

IREIT KOREA REIT was listed on the Korea Composite Stock Price Index (KOSPI) by Koramco Asset Trust in 2018 as a spearhead of the government’s REIT activation policy. It selected the top 3 branches by sales among 52 nationwide branches operated by E-Land Retail, the number one outlet operator in Korea, and incorporated them as REIT assets.

Additionally, it signed an 11-year long-term master lease contract with E-Land to secure dividend sustainability, and formalized an option to continuously increase rent reflecting the annual inflation rate, thereby ensuring sales stability.

Kim Cheol-gyu, head of Koramco Asset Trust, said, "IREIT KOREA REIT is a benchmark REIT that can gauge the direction of the domestic REIT market," and evaluated, "This refinancing secured diversity in funding by including corporate bonds in addition to existing secured loans." He added, "We will continuously develop it into a REIT that can grow sustainably through further refinancing to expand dividends, additional asset incorporation, and portfolio adjustments."