Koramco REITs Management and Trust, which operates Koramco The One REIT, announced on the 18th that it has entered into a five-year lease renewal with its major tenant, Hana Securities. Hana Securities will continue to occupy 16 floors (total rental area of approximately 38,826 square meters) in the Hana Securities Building in Yeouido for another five years.
Koramco The One REIT holds a single asset, the Hana Securities Building. Hana Securities has utilized more than half of the total floor area of this building. This creates concerns about a vacancy crisis ahead of the lease contract's expiration originally planned for December. With this renewal, the weighted average remaining lease period has increased to 4.2 years, enhancing operational stability.
Profitability has also been secured. As a result of the lease renewal with Hana Securities, the rent will rise by 3.5% annually from 102,000 won per pyeong. Even with the inclusion of one month of Rent-Free conditions per year, the average annual net rental revenue (E.NOC) is approximately 300,000 won over five years, exceeding the average of major offices near the Yeouido Business District (270,000 won).
The remaining task for Koramco The One REIT is refinancing. In November, a borrowing fund of 292 billion won will mature.
Lee Kyung-ja, a researcher at Samsung Securities, noted, "Since Koramco The One REIT was listed in 2020 during a low-interest-rate environment, the priority collateral loan interest rate was as low as 2.55%, so refinancing at a level higher than this will be inevitable."
However, this researcher indicated, "Recently, cases have emerged where the collateral loan interest rates for quality offices in Seoul are forming below 4%, so refinancing is likely to occur at a level lower than this around November." Given that Koramco The One REIT is managing lease agreements and cash flows to maintain the current dividend yield rate of around 6% up to an interest rate of 5%, it is not expected that there will be any disruption to the dividend yield.
Previously, Lee Hye-jin, a researcher at DAISHIN SECURITIES, also predicted that Koramco The One REIT could refinance at an interest rate of around 4%. This researcher expected that the increase in borrowing fund interest rates would be offset by improvements in lease revenue, resulting in Koramco The One REIT's dividend yield gradually increasing to 6.81% this year, 6.87% in 2026, and 7.02% in 2027. Koramco The One REIT distributes dividends quarterly.
Lee Jang-hyuk, the chief operator of Koramco The One REIT and an executive at Koramco REITs Management and Trust, stated, "The Hana Securities Building is located in the very center of the Yeouido International Financial Center, so it is expected that as Yeouido develops, the value will rise significantly, thereby increasing the value of Koramco The One REIT as well."