KOSPIReal Estate & REITs400760

NH All-One REIT

₩2,815▲ 0.72%2026-10-02 close

Market Cap

₩154.6B

Turnover

₩200M

Volume

60,000 shares

Shares out.

54.9M

PER

—

PBR

0.6×

EPS

—

Dividend Yield

11.37%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩320 per share · Prices as of the 2026-10-02 close

Report overview

Dangsan Sale Closed: Deleveraging Meets a Special Dividend Variable

NH Allone REIT has closed the sale of A-One Tower Dangsan to fund debt repayment and a potential special dividend, yet net profit remains squeezed by interest expense despite a sharp jump in revenue and operating profit.

1
2025 revenue rose to KRW 27.9bn and operating profit to KRW 18.77bn, but net profit attributable to owners was only KRW 1.39bn.
2
The company swung from a net loss of KRW 1.05bn attributable to owners in 2024 to a profit in 2025.
3
In August 2026 the company completed the sale of A-One Tower Dangsan for a 25% gain over its purchase price, with Samsung FN REIT as the buyer.
4
Sale proceeds are being used to repay borrowings, with loan-to-value expected to fall from 63.4% to 60.5%.
5
The company carried out its first rights offering since listing in 2025 to fund investment in Dongeuimun D Tower securities, while seeking to expand market capitalization for potential ETF inclusion.

Business structure

NH Allone REIT is a listed REIT sponsored by NH Nonghyup Financial Group that listed on the KOSPI in November 2021, with asset management handled by NH Nonghyup REITs Management.

The company pursues a multi-sector, core-plus strategy, favoring mid-sized assets with greater value-appreciation potential and higher cap rates than pure core properties.

Its portfolio consists of the directly held Bundang Square in Seongnam, plus assets folded into mother-child REIT vehicles (NH No.3, No.5, No.7, No.9) such as A-One Tower Geumnamro and Gwangju Station, the N-Square retail asset, Icheon Doji Logistics Center, and the Hitejinro Seocho office building.

Office assets are unified under the 'A-One' brand as the company pursues regional flagship positioning. Recently, through its subsidiary REIT (NH No.9), the company added the Hitejinro Seocho building and Dongeuimun D Tower securities, shifting its portfolio toward core metropolitan-area exposure.

Tenants include AK Plaza (master lease on the Bundang Square retail component), Hitejinro, and NH Nonghyup group affiliates, providing some diversification.

Competitively, the company vies for asset acquisitions and disposals against sponsor-backed peers such as Samsung FN REIT, Shinhan Alpha REIT, and Lotte REIT, while leveraging tax benefits under the subsidiary-REIT structure, including separated property tax treatment and comprehensive real estate tax exemption from full equity ownership.

Earnings trend

Quarterly revenue · Operating profit

RevenueOperating profit

Annual revenue · Operating profit

₩21.8B₩12.4B2022₩20.5B₩12.5B2023₩19.3B₩10.3B2024₩27.9B₩18.8B2025

RevenueOperating profit

Quarterly results · Last 0 quarters
Quarter	Revenue	Operating profit	Op. margin

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩21.8B	₩12.4B	₩3.9B	56.7%	2.0%	253.0%
2023	₩20.5B	₩12.5B	₩2B	60.8%	1.0%	267.3%
2024	₩19.3B	₩10.3B	-₩1.1B	53.4%	−0.6%	254.6%
2025	₩27.9B	₩18.8B	₩1.4B	67.3%	0.7%	360.1%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-11

Earnings analysis

Consolidated revenue rose sharply to KRW 27.89bn in 2025 from KRW 19.31bn in 2024, while operating profit climbed 82% year-on-year to KRW 18.77bn from KRW 10.30bn. The operating margin improved from 53.4% in 2024 to 67.3% in 2025.

Net profit attributable to owners, however, was only KRW 1.39bn, growing far more slowly than revenue and operating profit, a gap consistent with rising interest expense tied to expanded borrowings. Total liabilities jumped from KRW 469.99bn in 2024 to KRW 726.93bn in 2025, pushing the debt ratio from 254.6% to 360.1%.

In 2024 the company posted a net loss of KRW 1.05bn attributable to owners despite positive operating profit of KRW 10.30bn, an unusual swing to loss compared with net profits of KRW 1.98bn in 2023 (60.8% operating margin) and KRW 3.85bn in 2022 (56.7% operating margin). 2025 marked a return to profit, though the absolute profit level remains below the 2022-2023 range.

Operating cash flow rose notably to KRW 7.71bn in 2025 from KRW 2.19bn in 2024, indicating improved cash generation. Over the trailing four quarters (Q3 2025 through Q2 2026), combined net profit attributable to owners totaled KRW 1.89bn, broadly tracking the pace seen in full-year 2025.

Industry analysis

Korea's listed REIT market, after enduring the high-rate shock of 2022-2023, is now seeing new borrowing costs ease, which is providing some relief on financing costs.

However, the pace of recovery in the commercial real estate market remains slow, and the degree of earnings improvement is said to diverge widely by sector and location.

NICE Investors Service noted that the average funding cost for listed REITs rose from 3.7% to 4.5% over the past three years, while interest coverage (EBITDA/financing cost) fell from 1.9x to 1.6x.

Debt dependency among REITs that have not conducted asset revaluations has risen to around 57.9%, and the industry-wide credit direction is described as stable rather than upgrade-oriented.

In the second half of 2026, the K-REIT market's focus has shifted toward sponsor-backed REITs pursuing small, high-yield asset acquisitions, with cases such as Hanwha REIT's acquisition of the E-mart Tower and Shinhan Seobu T&D REIT's sale of the Nine Tree Hotel illustrating efforts to reduce sponsor dependency or recycle capital.

Within this landscape, NH Allone REIT is pursuing a rebalancing strategy that combines regional asset disposals with a shift toward core metropolitan assets, a stance oriented more toward balance-sheet repair than aggressive expansion.

Outlook

The company completed the sale of A-One Tower Dangsan in August 2026 and plans to recover the principal in November before prioritizing debt repayment. This is expected to lower portfolio loan-to-value from 63.4% to 60.5%, with an anticipated reduction in interest expense.

With the sale completed within the year, a special dividend tied to the December fiscal year-end is anticipated to be paid around March 2027.

Earlier, in 2025, the company conducted its first rights offering since listing, raising roughly KRW 30bn to invest in Dongeuimun D Tower preferred securities, a move positioned as groundwork for meeting the KRW 200bn market-cap threshold required for K-REIT ETF inclusion.

Over the medium term, the company has outlined a plan to expand its asset base by acquiring core-plus properties while divesting regional assets such as A-One Tower Geumnamro and Gwangju Station, aiming to enhance operational stability.

Continued refinancing to diversify loan maturities and reduce financing costs has also been cited as an ongoing task.

Whether this asset reshuffling ultimately translates into a larger special dividend and expanded market capitalization will depend on the timing of further disposals and acquisitions as well as market conditions.

Valuation

PER

—

PBR

0.6×

ROE

1.0%

EPS

—

BPS

₩4,644

Dividend per share

₩320

The stock appears to trade at a level below net asset value, with one market analysis noting that it has at times traded below the listed REIT sector's average price-to-NAV ratio.

On the dividend front, the semi-annual fiscal structure (June and December year-ends) results in two payouts per year, and the most recent settlement disclosed a dividend yield in the low single digits on a cash basis, not notably elevated relative to peers.

However, a special dividend tied to the Dangsan sale is anticipated, which could add variability to the total payout going forward as regular and special dividends combine.

On the earnings side, the company moved from a loss in 2024 to a profit in 2025, but given the marked rise in the debt ratio, whether the balance-sheet repair from asset sales actually translates into a sustained profit recovery remains a point to watch.

On liquidity, the company's relatively small market capitalization has kept it below the threshold for K-REIT ETF inclusion, a factor cited as influencing trading conditions.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-11

Bull factors

Debt Reduction and Special Dividend Funding via Asset Sales

By selling A-One Tower Dangsan at a 25% gain over the purchase price, the company secured funds to repay borrowings, and LTV is expected to decline from 63.4% to 60.5%. Once the sale proceeds are fully collected, a special dividend is expected to be paid around March 2027, marking a scheduled shareholder return event.

There is precedent for paying special dividends from the sale of A-One Tower Ingye (IRR 16.9%), suggesting that realizing gains from the sale of core-plus assets is a recurring pattern.

Track Record of Value Creation Under the Core-Plus Strategy

The company has a track record of achieving an IRR of 16.9% on the sale of A-One Tower Ingye through active value-add efforts, including lowering the vacancy rate from 19% at acquisition to 6%.

It has selectively acquired properties with higher cap rates than core assets, and a number of these assets show appraised values that have risen above their purchase prices. This asset management capability may also be applied to newly acquired assets going forward.

Easing Funding Costs in a Rate-Cutting Environment

Analysis suggests that refinancing in 2025 lowered the average funding rate, contributing to improved dividend yield. The industry-wide trend of declining new borrowing rates is a structural factor easing the financial cost burden on REITs. This could be a relatively favorable condition even for a company whose debt ratio has risen.

Bear factors

Profitability Eroded by Interest Expense

Despite operating profit surging to KRW 18.77 billion in 2025, net income attributable to controlling shareholders was only KRW 1.39 billion, significantly limiting earnings leverage.

The debt ratio jumped from 254.6% in 2024 to 360.1% in 2025, raising sensitivity to additional borrowing or interest rate changes going forward.

There is precedent from 2024, when the company recorded a net loss despite an operating profit, confirming that changes in interest expenses can have a significant impact on net income.

Regional Asset Exposure and Vacancy Risk

The portfolio includes a number of regional assets such as A-One Tower Geumnam-ro, A-One Tower Gwangju Station, and N Square, which are assessed as relatively inferior to metropolitan-area assets in terms of leasing demand and potential for asset value appreciation.

While the sale of regional assets is underway, the timing and price of such sales may fluctuate depending on regional economic conditions. If the sales are delayed, the overall pace of the rebalancing plan could slow down.

Limited Liquidity and Lack of ETF Inclusion

As market capitalization is not large, the company does not meet the K-REIT ETF inclusion criterion (market cap of KRW 200 billion), and there is precedent of it being excluded from an ETF it was previously included in during the first half of the year.

Although it expanded its size through a rights offering, whether it will be re-included in the ETF remains uncertain depending on subsequent share price trends. Liquidity constraints could act as a factor limiting inflows of institutional demand.

Risk factors

Interest Rate and Financial Risk

With the debt ratio having risen to 360.1%, interest rate changes have a direct impact on interest expenses and net income. Industry observers point out that if additional borrowing accompanies the acquisition of new assets, reliance on borrowed funds could rise again.

If the effects of maturity diversification and lower funding rates achieved through refinancing do not continue, the financial cost burden could increase again.

Asset Portfolio Risk

Given the weighting toward regional office and retail assets, there is a risk of rising vacancy rates in the event of weaker leasing demand or a downturn in regional economic conditions.

The simultaneous progress of asset sales and new acquisitions also raises the possibility of temporary gaps in the portfolio or in earnings. For value-add assets such as the Hite Jinro Seocho office building, expected returns could fall short if rent increases or conversion plans are delayed.

Governance and Structural Risk

The market has discussed the possibility of a merger with NH Prime REIT, which is managed by the same asset management company, and the impact of any future structural change on shareholder value remains undetermined.

The parent-child REIT structure is dispersed across multiple child REITs, making the decision-making and funding structure relatively complex. Measures to expand scale, such as rights offerings aimed at securing ETF inclusion, could also lead to share dilution or increased volatility.

What to watch next

November 2026
Check whether the principal from the A-One Tower Dangsan sale is fully recovered and confirm the scale of debt repayment, which will indicate the actual LTV reduction and interest savings.
Around March 2027 (annual general meeting)
Confirm whether a special dividend tied to the December fiscal year-end is paid and its size, and review the approved 13th-term financial statements to assess whether balance-sheet repair translates into shareholder returns.
Q4 2026 through 2027
Monitor whether further disposals of regional assets such as A-One Tower Geumnamro and Gwangju Station proceed, at what price, and whether plans to acquire new core metropolitan-area assets become concrete.
From the second half of 2026 onward
Continue to track whether market capitalization growth meets the KRW 200bn threshold for K-REIT ETF inclusion, and whether the stock is re-added to relevant ETFs.

Overall view

NH Allone REIT saw sharp growth in 2025 revenue and operating profit, but net profit growth was constrained by interest expense, and the debt ratio climbed to 360.1%. The swing from a 2024 net loss to a 2025 profit is a positive signal, though the absolute profit level has yet to recover to 2022-2023 levels.

The completed sale of A-One Tower Dangsan, the resulting debt repayment and LTV reduction, and the special dividend anticipated around March 2027 are notable events for the balance sheet and shareholder returns.

That said, the regional asset weighting, limited liquidity and lack of ETF inclusion, and the elevated debt ratio remain points that warrant continued observation.

Key items to watch going forward include confirmation of the sale proceeds recovery and special dividend, the pace of further regional asset disposals, and whether this portfolio reshuffling translates into sustained profit and dividend stability.

Investors should review the disclosed regular and special dividend details and quarterly financial statements directly before forming any judgment.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-12 · Data as of 2026-09-11

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.