[Asia Economy Reporter Park So-yeon] Samsung Securities has set a target price of 7,000 KRW and a buy rating for SK REITs.
According to FN Guide on the 24th, Samsung Securities recently stated in a report on SK REITs that "Upon completion of the incorporation of Jongno Tower, SK REITs' managed assets will increase from 1.8 trillion KRW at the time of listing to over 3 trillion KRW," explaining that this is the largest scale among K-REITs.
Researcher Lee Kyung-ja of Samsung Securities analyzed, "SK REITs is expected to experience high growth due to the incorporation of affiliated companies' real estate and gas station conversion."
Lee cited SK REITs' strengths as "the opportunity to receive high-quality offices with high scarcity from affiliated companies, and the fact that a significant portion of the REIT's credit rating is determined by the credit of tenants, who are mainly affiliated companies with excellent credit ratings."
He added, "The trust enjoyed by a mega REIT will ultimately result in enhancing shareholder value through lower financing costs and increased dividends."
Meanwhile, SK REITs decided to invest capital in a subsidiary REIT, Total Value Trust Management REIT, to incorporate Jongno Tower. The purchase price of Jongno Tower is 621.5 billion KRW, at 33.9 million KRW per pyeong. From 2021, SK affiliates will begin leasing Jongno Tower, focusing on companies in the eco-friendly sector.
SK REITs Management has decided to exercise the right of first refusal on Jongno Tower. Funding will be raised by the subsidiary REIT taking out a secured loan of 250 billion KRW, and SK REITs issuing corporate bonds worth 130 billion KRW and electronic short-term bonds worth 330 billion KRW, planning to invest 460 billion KRW in capital.
Researcher Lee Kyung-ja assessed, "Since the corporate bond market has recently contracted, there is a high possibility of considering convertible bond issuance and increasing short-term bonds and secured loans."
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