Koramco The One REIT Secures 5-Year Lease Extension with Hana Securities

Koramco Asset Trust announced on the 18th that its listed REIT, Koramco The One REIT, has secured both profitability and stability by signing a long-term lease renewal with its main tenant, Hana Securities, for the next five years. Expectations for reduced financing costs for REITs are rising due to the ongoing base interest rate cuts, further increasing the investment appeal.

As a result of the lease renewal between Koramco The One REIT and Hana Securities, the contract, which was originally set to expire in December this year, will now see Hana Securities re-leasing 16 floors in the Yeouido Hana Securities Building for the next five years. The rent will increase by 3.5% annually from the current 102,000 won per pyeong. Even after factoring in a rent-free period of one month per year, the average annual effective net operating income (E.NOC) is expected to be around 300,000 won per pyeong over the five-year lease term. This is considered relatively high profitability compared to the average E.NOC of major offices near the Yeouido Business District (YBD), which is in the mid-270,000 won range.

The weighted average remaining lease term for Koramco The One REIT has also been extended to 4.2 years, significantly enhancing the operational stability of the REIT.

Lee Hyejin, a researcher at Daishin Securities, stated in a report, "With the renewal, net operating income (NOI) for 2026 is expected to increase by 17.3% compared to the previous year," and added, "Profitability is also expected to rise due to the rent increase."

Additionally, with the Bank of Korea's base rate cut trend, the refinancing of a total of 292 billion won in loans scheduled for November this year is expected to be possible at an interest rate around 4%.

Daishin Securities maintained its 'Buy' rating on Koramco The One REIT. The target price was raised by 22.2% from 5,400 won to 6,600 won. The expected dividend yield for this year is estimated at 6.81%, and for next year at 6.87%.

Koramco The One REIT is a quarterly dividend REIT that distributes dividends four times a year. As a rare product in the listed REIT market, where biannual dividends are the norm, it is highly valued for meeting investors' demands for regular and predictable income structures.

Lee Janghyuk, Managing Director and Head of Operations at Koramco Asset Trust, said, "The renewal with Hana Securities not only improves profitability to the market rent level but also strengthens dividend stability through a five-year long-term contract." He added, "The Hana Securities Building is located at the heart of Yeouido's International Financial District, making it an asset with significant potential for value appreciation alongside Yeouido's future development. The value (stock price) of Koramco The One REIT is also expected to rise accordingly."