Dividend of 248 KRW per share... Dividend yield of 10.8% based on initial issue price
DF Tower preferred stock investment, catalyst for profitability and growth increase
Koramco Asset Trust announced on the 9th that it has confirmed a dividend of about 10% following the successful signing of sales contracts for six gas stations, which are part of the assets held by Koramco Life Infrastructure REITs. Koramco Asset Trust had announced a special dividend plan in May along with the disclosure of the gas station sales plan for Koramco Life Infrastructure REITs.
Among the gas stations subject to sale, transactions for three locations?Sincheorwon Gas Station, Daejeon Jungang-ro Self Gas Station, and Gangwon Samcheonri Gas Station?have been completed. Transactions for the other three locations?Mokgam site, Gunja Self Gas Station, and Doknipmun Gas Station?are scheduled to be completed by November this year. The entire sales proceeds will be distributed as a special dividend, with 248 KRW per share to be paid. The special dividend will be paid to shareholders registered in the shareholder registry by the end of November and will be deposited into stock accounts in February next year.
Koramco Life Infrastructure REITs is Koramco Asset Trust’s flagship listed REIT, holding over 160 HD Hyundai Oilbank directly operated gas stations nationwide, large home appliance stores such as Samsung and LG Electronics, Coupang fulfillment and last-mile logistics centers, drive-thru (DT) stores of major F&B brands like McDonald’s and Paul Bassett, and preferred shares of Majesta City Tower 1 in Seocho-dong.
At the time of listing, 100% of sales came from gas station-related sectors, but currently, 32% comes from logistics centers, 11% from retail, 5% from electric vehicle charging stations, and 4% from offices. The sales proportion from gas stations has significantly decreased to 48%. In addition, continuous diversification of sales channels is expected, with Paul Bassett drive-thru (DT) stores scheduled to open in two locations?Yeongildae in Pohang and Goejeong-dong in Saha-gu, Busan?around this Chuseok holiday.
Recently, Koramco Asset Trust disclosed a plan for a 40 billion KRW rights offering to enhance the scale of Koramco Life Infrastructure REITs. The purpose of the rights offering is to purchase preferred shares of the DF Tower near Gangnam Station, which is used as the headquarters by Dunamu, the operator of the virtual asset exchange Upbit.
The first issuance price for the rights offering is 4,585 KRW per share, and subscription for existing shareholders will be conducted over two days from the 7th to the 8th of next month. The final issuance price will be confirmed just before the subscription, but if the special dividend is received based on the first issuance price, shareholders will earn an annual dividend yield of 10.8%.
Koramco Life Infrastructure REITs plans to enhance dividend stability and mid-to-long-term growth through investment in DF Tower preferred shares. At the time of listing, the target dividend yield (dividend guide) was 6.2% annually based on the public offering price, but through steady value-add and asset sales, it is currently delivering an annual dividend of 7.6%, exceeding the target dividend yield. Koramco Asset Trust plans to raise the target dividend yield through the purchase of DF Tower preferred shares.
Lee Jang-hyuk, head of Koramco Asset Trust, said, "Koramco Life Infrastructure REITs has been steadily increasing the actual dividend rate compared to the target return by applying various strategies," adding, "This trend will remain unchanged going forward." He further stated, "Moreover, this rights offering will act as a catalyst to sharply increase the profitability and growth potential of Koramco Life Infrastructure REITs."
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