Hantoo Securities: "SK REITs Possess the Three Essentials of Dividend, Growth, and Stability"

[Asia Economy Reporter Lim Jeong-su] Korea Investment & Securities has evaluated SK REITs, a real estate investment company of SK Group, as an investment destination that possesses all three qualities of dividend yield, growth potential, and stability.

On the 20th, Kang Kyung-tae, a researcher at Korea Investment & Securities, stated in a report, "REITs grow by increasing the value of incorporated assets or acquiring investment assets," adding, "In the case of SK REITs, it holds a right of first refusal for prime group assets such as the SK Telecom Tower, and it can have exclusive participation opportunities in acquiring real estate assets for the group’s new businesses, which indicates high growth potential."

Researcher Kang also said, "SK REITs have a dividend payment cycle of 3 months, which is shorter than other REITs (6 months), resulting in higher returns through reinvestment," and forecasted, "With stable dividend income from subsidiary REITs, the annualized dividend yield will be maintained at 5.5% after October."

He anticipated, "The development of gas station assets held by the subsidiary REIT will also increase the value of incorporated assets." SK REITs plan to develop gas stations, which currently function simply as petroleum product distribution networks, into electric vehicle battery and hydrogen fuel cell platforms.

Meanwhile, SK REITs was established with 100% investment from SK Inc., the holding company of SK Group. Through pre-IPO equity investment and a recent IPO, SK’s shareholding has decreased to 50%. Currently, it holds assets including the SK Seorin Building, the SK Group headquarters, and 116 SK Energy gas stations. The value of incorporated assets is 1.77 trillion KRW.