Lotte Reit Co., Ltd. · KRX:330590
Lotte Reit — Investor Presentation (November 2020)
19 slides from Lotte Reit's investor presentation, Nov 23, 2020
Slide 1: Future of real estate investment creating new value
Future of real estate investment creating new value Your investment companion, LOTTE REIT
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by LOTTE REIT Co., Ltd. (the “LOTTE REIT”) solely for information purposes in connection with the proposed acquisition of certain additional real property assets (the “Proposed Acquisition”), which is subject to the shareholder approval at the sharehold
Slide 3: Chapter 01-03 agenda
Chapter 01. Background of Asset Incorporation Chapter 02. LOTTE REIT Overview Chapter 03. Key Investment Highlights
Slide 4: Purpose of Asset Incorporation: Grow into a Global REIT of Significant Scale
Purpose of Asset Incorporation Chapter 01. Purpose of Asset Incorporation Grow into a Global REIT of Significant Scale Enlarge Maximize Diversify Portfolio Shareholder Value Asset Size Incorporate quality retail assets Incorporate logistics asset, Stable dividend income through operated by LOT
Slide 5: LOTTE REIT Overview
Chapter 02 LOTTE REIT Overview 1. Asset Overview and Master Lease Agreement Structure 2. Asset Portfolio Overview
Slide 6: Asset Overview and Master Lease Agreement Structure
Asset Overview and Master Lease Agreement Structure 1 Chapter 02. LOTTE REIT Overview Selectively acquire LOTTE Shopping’s retail properties with competitive advantages in terms of revenue generation, foot traffic, and location Incorporate a cutting-edge automated logistics center located in Gim
Slide 7: Asset Portfolio Overview
Asset Portfolio Overview 2 Chapter 02. LOTTE REIT Overview Five of the six new proposed acquisition assets are located in the metropolitan area, and c. 64.3% of total portfolio assets are located in metropolitan area based on appraisal value Multi-tranche structure to minimize risk associated wi
Slide 8: Key Investment Highlights
Chapter 03 Key Investment Highlights
Slide 9: LOTTE REIT Key Investment Highlights
LOTTE REIT Key Investment Highlights Chapter 03. Key Investment Highlights Selective Acquisition of LOTTE Potential Dividend Yield Group’s High Quality Properties 1 7 Growth Based on Favorable Financing Terms Portfolio Diversification Largest Public REIT in Through Incorporation of Logistics Center
Slide 10: Selective Acquisition of LOTTE Group's High Quality Properties
Selective Acquisition of LOTTE Group’s High Quality Properties 1 Chapter 03. Key Investment Highlights Retail and logistics assets with location advantages such as high floating population, high land value growth and multiple transport access Incorporation of assets that are expected to achieve
Slide 11: Portfolio Diversification Through Incorporation of Logistics Center
Portfolio Diversification Through Incorporation of Logistics Center 2 Chapter 03. Key Investment Highlights Gimpo Logistics Center is a cutting-edge automated distribution center with various temperature storage types and is used as a key distribution center for LOTTE Shopping’s online business
Slide 12: Portfolio Diversification Through Logistics Center (Cont'd) ROFO
Portfolio Diversification Through Incorporation of Logistics Center (Cont’d) 2 Chapter 03. Key Investment Highlights On track to obtain Right Of First Offer (“ROFO”) for the top logistics centers operated or being developed by LOTTE Global Logistics Ability to construct a stable portfolio by acq
Slide 13: Stable Rental Income with Upside Potential
Stable Rental Income with Upside Potential 3 Chapter 03. Key Investment Highlights Minimize rental income volatility by incorporating low variable rent scheme (c. 3% of total rental income) Potential upside in rental income when the retail market recovers – 2020E sales of the proposed acquisitio
Slide 14: Long-term Growth Potential from Additional Asset Injection Opportunities
Long-term Growth Potential from Additional Asset Injection Opportunities 4 Chapter 03. Key Investment Highlights Long-term growth potential based on ROFO on LOTTE Shopping’s retail assets of and LOTTE Global Logistics’ logistic properties Grow as a global mega REIT with the largest AUM in Korea
Slide 15: Reliable Tenants with Business Competitiveness and Financial Stability
Reliable Tenants with Business Competitiveness and Financial Stability 5 Chapter 03. Key Investment Highlights LOTTE Shopping is a core subsidiary of LOTTE Group that leads domestic retail market and LOTTE Global Logistics is Korea’s leading logistics company that offers seamless global one-stop s
Slide 16: Largest Public REIT in Korea with Competitive Advantages
Largest Public REIT in Korea with Competitive Advantages 6 Chapter 03. Key Investment Highlights Largest public REIT in Korea based on key indicators such as AUM, market capitalization, global index inclusion, credit rating etc. Plans to maintain its leading position as the largest public REIT i
Slide 17: Largest Public REIT in Korea with Competitive Advantages (Cont'd)
Largest Public REIT in Korea with Competitive Advantages (Cont’d) 6 Chapter 03. Key Investment Highlights Higher dividend yield and dividend yield spread compared to global public REIT peers Potential to grow into a large scale REIT through series of additional asset injection Country Korea Sing
Slide 18: Potential Dividend Growth with Favorable Financing Terms
Potential Dividend Growth with Favorable Financing Terms 7 Chapter 03. Key Investment Highlights Maintain healthy financial structure compared to peer public REITs with low LTV and debt funding cost Successfully issued c. KRW170bn corporate bond based on a robust credit rating of AA-1 Potentia
Slide 19: Thank you
© LOTTE REIT Thank you