[Click e Stocks] "SK REITs, Funding Burden"

On the 23rd, NH Investment & Securities downgraded the target price of SK REITs from 6,000 KRW to 5,500 KRW, considering the rise in funding interest rates. The investment rating was maintained at 'Buy.'

Lee Eun-sang, a researcher at NH Investment & Securities, explained, "The burden includes the repayment of 237 billion KRW in electronic short-term bonds related to the water treatment center and borrowings of 1 trillion KRW maturing in July this year," adding, "We are raising the refinancing interest rate estimate by 60 basis points."

He continued, "The effect of incorporating the water treatment center will be reflected from the first quarter of this year," and predicted, "It will be possible to pay dividends per share (DPS) quarterly in the first half of the year without capital injection." However, he added, "A decrease is inevitable after refinancing in the second half of the year," and "The dividend preservation strategy through capital injection and gas station sale gains, as in last year, remains valid."

The researcher analyzed, "Since the potential for additional dividend increases this year is limited, it is necessary to focus on plans to lower and expand funding interest rates through additional bond issuance."