REIT OVERVIEW  

REIT OVERVIEW  

REIT
Overview Investment
Strategy Management
Status
REIT under management

Real Estate
Investment Trust

What is REIT?

In accordance with Article 2 subparagraph 1 of the Real Estate Investment Company Act, REIT is a company in the form of an indirect investment scheme
which raises the fund from numerous investors, invests in real estate or real estate related securities and returns the profit to the investors.

LOTTE REIT

Purpose

01

Delivering an opportunity to invest indirectly
in real estate to the public

The public's demand in real estate investment is met by offering
opportunities to invest in blue-chip properties to small investors
who have little access to real estate investment.

02

Promoting sound real estate investments

As a quality alternative investment instrument, it increases the
transparency of the trade and promotes sound investments.

Structure of REIT

Structure of REIT

The structure of consigned-management REIT

· Consigned-management REIT : A paper company which commissions the management of asset/administration/asset custody to Asset Management
Company/Business Trustee/Asset Custodian.

Advantages of REIT

Advantages of REIT

  • Profitability

    REIT's dividend yield is higher than the average of
    normal stocks' since REIT is required to distribute at
    least 90% of divisible profit.

  • Stability

    As the source of dividend is rental income from REIT's
    properties, it is stable and predictable.

  • Liquidity

    REIT investors can easily trade and liquidate stock
    through over-the-counter market and Korea Exchange
    (when listed).

  • Activating Corporate Management

    As REITs enable a company to securitize its own
    real estate assets, the company could utilize REITs
    as a source of financing. As a result, corporate
    reinvestment could be encouraged in the process,
    which will ensure the benefit of the virtuous cycle
    of strengthening corporate competitiveness and
    vitalizing the economy.