[2024.04.12] Puts shareholder returns at forefront - SAMSUNG SECURITIES
2024.04.12
- SK REIT announced two a shareholder return policy with two key provisions: 1) the
disposal of two gas stations and distribution of gains to shareholders; and 2) share
buybacks.
- We see dividend upside for the REIT given that it should be able to: 1) refinance a
loan due to mature in July at a lower interest rate than it previously assumed; and 2)
raise rental fees at underlying asset Jongno Tower in September.
- SK REIT’s shares pulled back following the incorporation of a water treatment facility
in Sep 2023—though we find the correction to be excessive. Now is the time to focus
on the positive effects of the REIT’s improving fundamentals.