For the first time in 25 years since the real estate investment trust (REIT) system was introduced, the market capitalization of domestically listed REITs has surpassed 10 trillion won.
On the 1st, according to the Korea REITs Association and the Korea Exchange (KRX), as of the closing price on the 27th, the total market capitalization of the 25 REITs listed on the domestic stock market was 10.0381 trillion won.
REIT market cap, which was at the 8 trillion won level in January last year (8.0103 trillion won), surpassed 9 trillion won in September of the same year (9.2048 trillion won) and exceeded 10 trillion won in five months. Compared with February last year (8.4964 trillion won), it rose about 18.1% in one year.
REITs with market caps over 1 trillion won are three: SK REIT (1.779 trillion won), LOTTE REIT (1.4015 trillion won), and ESR Kendall Square REIT (1.0643 trillion won).
Recently, as the domestic main board (KOSPI) index broke above the 6,300 level and showed strength in a "bull market" phase, it is seen to have drawn a tandem rise in REITs. In particular, because REITs are legally required to distribute more than 90% of distributable profits as dividends to shareholders, funds preferring stable cash flow are believed to have flowed in.
In addition, as the rate-cutting trend has continued since the end of 2024, the dividend appeal of REITs has increased, which is cited as a factor lifting REIT share prices and market caps. When rates fall, the relative advantage of REIT dividend yields stands out. As of the end of 2024, the average annual dividend yield of listed REITs is 7.5% based on the offering price and 8.1% based on the market price.