Aegis Value REITs Completes 62.8 Billion KRW Rights Offering Successfully

Aegis Asset Management's flagship REIT, Aegis Value Plus REIT (hereinafter Aegis Value REIT), has successfully completed a rights offering.

According to the financial investment industry on the 4th, Aegis Asset Management has completed the payment for the 62.8 billion KRW rights offering of Aegis Value REIT.

The total number of new shares issued through this offering is 14,698,134 shares. The issue price per share is 4,270 KRW. The new shares are scheduled to be additionally listed on the 16th.

During the two-day subscription period for existing shareholders on the 24th and 25th of last month, the subscription rate reached 107.22%. Despite the high allocation ratio of issuing 0.4 new shares per 1 existing share, the offering was fully subscribed.

The reason behind the full subscription is attributed to Aegis Value REIT's shareholder-friendly policies demonstrated so far. In response to last year's rapid interest rate hikes, Aegis Value REIT quickly raised its target dividend rate.

Additionally, efforts to maintain shareholder trust included actively sharing management status through shareholder letters. Upon announcing this rights offering, IR materials were promptly released to explain the background and effects of the offering.

Furthermore, the timing of the new share issuance was set in August, before the end of the accounting period (March to August 2023), allowing new shareholders to receive dividends for the fiscal period ending in August.

According to the business plan, the dividend per share for this fiscal period (March to August 2023) is 200 KRW. From the perspective of new investors, it is expected to achieve a dividend yield of approximately 4.7% within one month after payment (annualized approximately 56.4%).

With the capital increase through this rights offering, Aegis Value REIT plans to repay 60 billion KRW out of the 176 billion KRW bridge loan taken for the purchase of Twin Tree Tower.

Including the increase in the value of Aegis Value REIT's existing assets, the debt ratio is expected to decrease to below 65%. This is anticipated to help manage credit ratings and secure capacity for new investments.

An official from Aegis Asset Management said, “Amid the stock market polarization such as in secondary batteries and the possibility of further base rate hikes, we are grateful that the trust of shareholders in Aegis Value REIT’s shareholder-first principle enabled the full subscription of this rights offering. We will continue to steadily incorporate assets that enable the company’s long-term growth based on the shareholder-first principle and strive to become a REIT that grows together with shareholders.”