[Click eStock] "Shinhan Alpha REITs, Expected to Join Nareit Index"

NH Investment & Securities expected the stock price of Shinhan Alpha REITs to rise due to anticipation of its inclusion in the FTSE EPRA Nareit index next month.

The FTSE EPRA Nareit index is a representative benchmark index related to global REIT investments by institutional investors. It is jointly managed by FTSE Russell, a subsidiary of the London Stock Exchange, the European Public Real Estate Association (EPRA), and the National Association of Real Estate Investment Trusts (Nareit) in the United States.

Lee Eun-sang, a researcher at NH Investment & Securities, explained, "The FTSE EPRA Nareit index is the most authoritative index among REIT-related indices," adding, "Among the 23 domestically listed REITs, four REITs including ESR Kendall Square REITs, Lotte REITs, JR Global REITs, and SK REITs have been included."

He further analyzed, "Considering the stock returns in the month prior to each REIT's index inclusion date and the fluctuations in the 3-year government bond yield during that period, the stock price increases of ESR Kendall Square REITs and SK REITs were particularly notable."

He emphasized, "Shinhan Alpha REITs had a stock return of only 0.15% over the past month due to concerns about the ex-dividend date," and added, "It is encouraging that the institutional investor proportion increased the most among listed REITs." Furthermore, he explained, "Unless there is an unexpected large fluctuation in government bond yields over the next month, the stock price is expected to rise on anticipation of inclusion in the Nareit index."