Shinhan Global REITs Invests in US Real Estate... "8.5% Annual Dividend for 2 Years"

Shinhan Global Active REITs (Shinhan Global Active Trust Management Real Estate Investment Company), Korea's first global real estate fund REITs, held a press conference in Yeouido on the 3rd to announce its future strategies and vision following its listing on the KOSPI market.

The biggest feature of Shinhan Global Active REITs is that individual investors can invest in US open-ended real estate funds, which until now were only available to institutional investors. It currently invests in USGB, PRISA, and CBRE USCP, which are managed by leading US real estate investment firms.

Through these three open-ended funds, it invests in approximately 550 assets. Looking at the sector allocation, it is diversified across various sectors with government infrastructure at 51%, logistics 15%, residential 13%, and alternative assets 7%. Office properties account for only 8.4%. Shinhan Global Active REITs has constructed a high-quality REIT portfolio considering three conditions: stability, profitability, and growth potential.

The most distinctive feature of Shinhan Global Active REITs is the regularization of special dividends, focusing on returning profits to investors. Typical listed REITs that invest directly in physical assets can only pay special dividends when assets are sold, and reinvesting the recovered principal requires securing new assets. In contrast, investments in open-ended funds like Shinhan Global Active REITs allow mid-term redemptions and reinvestments.

Utilizing these advantages, it plans to conduct special dividends annually through regular partial redemptions. Additionally, to enhance investment stability for investors, it plans to pay an annualized dividend of 8.5% based on the public offering price of 3,000 KRW during the first two years after listing.

After listing on the securities market, Shinhan Global Active REITs plans to build a pipeline centered on 26 funds that meet the guidelines within the benchmark index, NFI-ODCE.

It aims to lay the foundation for sustainable growth by investing not only in high-growth sectors such as logistics and residential but also in new growth sectors like data centers and healthcare.

A Shinhan REITs Management official stated, “Shinhan Global Active REITs is a new type of REIT that presents a new paradigm for overseas investment,” adding, “Through continuous asset incorporation and building a solid pipeline after listing, we will become Korea’s representative overseas real estate investment REIT that combines stability, profitability, and growth.”

Meanwhile, Shinhan Global Active REITs plans to offer approximately 23.33 million shares in this public offering. The expected price range per share is 3,000 to 3,800 KRW. Accordingly, the expected amount to be raised is between 70 billion and 88.7 billion KRW. From the 3rd to the 5th, a three-day demand forecast will be conducted targeting institutional investors to finalize the public offering price. After general subscription on the 13th and 14th of this month, it aims to be listed on the KOSPI market by the end of June. Shinhan Investment Corp. and Korea Investment & Securities Co. are in charge of the listing underwriting.

Unlike previously listed REITs that fixed the public offering price at 5,000 KRW, Shinhan Global Active REITs has set a price band and will finalize the public offering price through institutional demand forecasting. Given concerns about the overseas real estate market, the price band has been lowered to reduce the entry barrier for investors.