This article was displayed on the ChosunBiz MoneyMove (MM) website at 4:16 p.m. on Mar. 13, 2026.
As the share prices of domestically listed REITs have failed to shake off a prolonged slump, investor dissatisfaction is growing. With many issues still hovering at about half of their offering prices, some in the market say it would be better to liquidate by selling the assets. There is a real-world case tied to this view. Koramco The One REIT, which is currently proceeding with asset sales and liquidation, is hitting a string of record highs.
According to the financial investment industry on the 13th, of the 25 REITs listed on the domestic stock market, 20 issues—about 80%—are trading below their offering prices. Large-cap REITs with market capitalizations of around 1 trillion won show a similar picture. As of the close that day, LOTTE REIT and ESR Kendall Square REIT finished at 4,795 won and 4,350 won, respectively, both below their offering prices.
In particular, REITs backed by overseas real estate as underlying assets have delivered dismal report cards. Mastern Premier Reit 1 closed at 1,469 won that day, down more than 70% from its offering price of 5,000 won. JR Global REIT (-67.96%), Shinhan Global Active REIT (-62.33%), Mirae Asset Maps REIT 1 (-51.70%), and Mirae Asset Global REIT (-49.40%) are also trading at about half of their offering prices.
Exchange-traded funds (ETFs) that invest indirectly in REITs are also showing sluggish performance. PLUS K-REITs, which focuses on domestic REITs, is down 29.18% from its first-day closing price of 10,005 won. Even products that include relatively stable infrastructure assets—TIGER REITs Real Estate Infrastructure and KODEX Korea Real Estate REITs Infrastructure—are posting negative returns of 10.24% and 6.03%, respectively, versus their offering prices at listing.
The industry points to the interest-rate environment and weakened market confidence as twin causes of the slump in listed REIT shares. Because REITs are income-type assets that pay dividends based on real estate rental revenue, their relative investment appeal naturally declines as interest rates rise. On top of that, concerns about valuation adjustments in the global commercial real estate market have weighed on sentiment.
The structural funding model of REITs is also cited as a drag on share prices. REITs often raise funds through paid-in capital increases to add new assets or repay borrowing fund. However, repeated paid-in capital increases can increase the share count, diluting existing shareholders' equity and potentially reducing dividend capacity, which in turn pressures share prices as such concerns grow.
As REITs more frequently turn to shareholders for operating funds or debt repayment, a vicious cycle is repeating in which upside momentum evaporates. For example, JR Global REIT, which decided on a 120 billion won paid-in capital increase in early last month, saw its shares drop more than 17% within seven trading sessions. The company ultimately scrapped the capital increase as the share price fell to the low-2,000 won range, but the decline continued and the stock plunged into the 1,000 won range.
Amid this backdrop, the Koramco The One REIT case is being floated as an alternative. Koramco The One REIT is a REIT that holds the Hana Securities building in Yeouido, Seoul, as its sole underlying asset and is preparing for liquidation as it proceeds with the sale of that asset. Expectations that the asset sale price could come in higher than the market had anticipated are driving the stock higher day after day. Koramco The One REIT closed at 9,400 won that day, up about 88% from its offering price
Among investors, there is a growing view that, with shares trading below offering prices for a long time, it may be more advantageous to recoup capital by selling assets rather than receiving dividends that amount to eating into principal. Including Koramco The One REIT, only five listed REITs are trading above their offering prices: SK REIT, Hanwha REIT, Shinhan Alpha REIT, and Samsung FN REITs.
An industry official said, "To continuously rebalance underlying assets and expand portfolios, a certain level of funding is inevitable," and added, "Recently, in light of the market's aversion to paid-in capital increases, we are seeing moves to raise funds through other means such as corporate bond issuance or development-type blind funds."