"After a 8,900 Won Dividend, Only 2,400 Won Left?"... Koramco The One REIT Issues 'Ex-Dividend Warning' [fn Market Watch]

[Financial News] Koramco The One REIT, which is set to pay a special dividend of about 8,900 won per share, has been placed under an ex-dividend warning. Investors who focus only on the large payout could face unexpected volatility, as the share price may be revalued to near liquidation value after the ex-dividend date. KORAMCO REITs Management and Trust, the manager, has also unusually issued a direct warning about the possibility of price adjustments.
According to the REIT industry on the 26th, Koramco The One REIT's ex-dividend date is the 28th. The record date is the 31st, and under the current T+2 settlement system, investors must buy by the close of trading on the 27th to secure the special dividend right.
Koramco The One REIT's expected shareholder return is about 11,300 won per share. That figure includes a special dividend of roughly 8,900 won, funded by gains from the sale of the Hana Securities building in Yeouido, and about 2,400 won in residual asset distributions to be paid during the liquidation process.
The key issue is what happens after the ex-dividend date. Unlike typical listed REITs, which reinvest in new assets after paying special dividends, Koramco The One REIT is moving toward liquidation. Once dividend rights disappear, the stock's economic value may be reassessed based mainly on the residual asset distribution expected to be paid later.
The closing price on the 25th was 10,960 won. Compared with the estimated residual asset distribution of 2,400 won, that is a gap of more than 8,500 won. Investors who entered the stock only for the special dividend could face a sharp price adjustment during the ex-dividend process.
That is why KORAMCO REITs Management and Trust stepped in to protect investors. Unlike the usual practice of managers highlighting the dividend appeal of their products, this time it preemptively warned of a possible share price decline after the large payout.
The special dividend is funded by the Hana Securities building in Yeouido, which was sold in June for 811.2 billion won. Koramco The One REIT secured about 318 billion won in gains from the sale and chose shareholder returns and liquidation rather than reinvesting in new assets.
Changes in supply and demand during the delisting process are another variable. Exclusion from related indices and holdings by exchange-traded funds (ETF) that track them could add to share price volatility after the ex-dividend date.
Meanwhile, Koramco The One REIT plans to pay the special dividend after its regular shareholders' meeting in November, then proceed with creditor protection and residual asset distribution procedures, with the goal of completing liquidation by February next year. However, dissolution still requires a special resolution at the shareholders' meeting and has not yet been finalized, while the actual amount returned may also change depending on the final settlement results.
"In this case, investors should look not only at the high dividend yield but also at the asset value left after the payout," said an industry official. "This is different in nature from the ex-dividend process of a typical high-dividend REIT."
"Because the special dividend is so large, the share price could fall to around the expected residual asset distribution amount after the ex-dividend date," said an official at KORAMCO REITs Management and Trust. "Please make investment decisions carefully, taking into account both the rights confirmation date and the current share price level."


[email protected] Kim Kyung-a Reporter