[2023.09.18] MGMT. expresses determination to strengthen shareholder returns - SAMSUNG SECURITIES
2023.09.18
• Controversy lingers over the timing of SK REIT’s incorporation of SK Hynix’s water
treatment facility as a new underlying asset and its intension. But equally noteworthy
is that to ease the doubt, management has expressed strong determination to bolster
its shareholder returns. The REIT should begin disposing of gas station assets in
September and in December to return the entire gains to shareholders.
• The REIT’s two moves—ie, incorporation of the asset (completed); and 2) issuance
of a rights offering (underway)—should lower the REIT’s LTV ratio to 64% and remove
the risk of its dividend cut, the latter despite a hike in interest rate.