이 기사는 2019년 12월 09일 08:00 thebell 에 표출된 기사입니다.

Foreign investors’ ownership of Shinhan Alpha REIT has increased by almost 10 times in a year. With foreign investors with mid-to-long term investment perspective increasing, stability in stock price is expected be improved.

Foreign holdings of Shinhan Alpha REIT have risen by around 10 times in the past year. As of November 29, foreign holdings of Shinhan Alpha REIT stand at 3.21 percent, or more than 1.52 million shares. They held around 11 thousand shares or 0.03 percent of total shares as of November 30, 2018.

Market watchers see the increase in foreign ownership in Shinhan Alpha REIT is an unusual phenomenon. Lotte REIT, which made its debut on the benchmark Kospi this year, had foreign ownership of 10.36 percent on the listing day, October 30, but it dropped to 6.88 percent as of November 29.

Foreign investors also have reduced their holdings in E KOCREF CR-REIT, listed on the Kospi last year, from around one percent in early November to 0.7 percent on November 29.

Shinhan Alpha REIT has bucked the trend thanks to its inclusion in S&P indices in the first quarter of this year. Foreign ownership of the stock exceeded one percent in late March for the first time.

With the stock included in the major global indices, major foreign institutional investors have purchased the stock. The second-largest exchange traded fund (ETF) manager in the world Vanguard bought a large amount of Shinhan Alpha REIT shares in March.

Shinhan Alpha REIT has joined eight indices launched by S&P. What is notable is that the stock is included in three S&P indices that are composed of blue-chip REITs around the world, including S&P Global REIT, S&P Developed REIT Index, and S&P Pan Asia REIT Index.

Market watchers pay attention to the fact that the price stability of Shinhan Alpha REIT shares has improved. As foreign shareholders who have long term investment perspective increase, a possibility of price fluctuation in the near-term has reduced. Since mid-October, when foreign ownership exceeded two percent, the stock price hasn’t fallen below 8000 won level.

Stable stock prices enhance the value of REIT products. If stock price volatility is reduced, a risk of losing investment principal weakens, and investors may anticipate stable dividend yields in the longer term.

REITs are one of the most popular dividend stocks in the capital market. Its annual dividend yield of six percent is appealing to investors.

“As REITs are long term investment products, investors are unlikely to sell at a loss on the short-term stock price decline. But it sure is a factor that dampens investor sentiment,” said a market watcher, adding “Reduced stock price volatility is an encouraging phenomenon considering the nature of REITs.”

“Retail investors tend to consider investing in REITs to make retirement savings. Reduced risk of losing principal by enhancing stock price stability lures not only institutional investors but also retail investors,” said a second market watcher.

(By reporter Jeon Kyung-jin)