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Korea Real Estate Investment & Trust · 034830 · Financials

Korea Real Estate Investment & Trust: Shares Near 52-Week Low as Operating Loss Persists Despite Positive Net Income

Why this report

Start of coverage: written when a reader opened this company and there was no report yet.

The shares closed at ₩1,051 on 2026-10-21, close to the 52-week low of ₩1,039, after falling 19.2% over one year. Trailing results to H1 2026 show an operating loss of ₩15.4B but net income of ₩40.9B, and the stock trades at 0.3x book value.

Written Oct 22, 2026 · Data as of Oct 21, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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Thesis

The data supports a picture of a heavily discounted stock with weak core earnings. Price to book is 0.3, versus 0.5 to 0.9 for the listed financial peers, and the trailing P/E of 6.5 sits within the peer range of 3.4 to 7.5. However, the P/E rests on net income that exceeds operating income, so the quality of that profit is not clear from the data provided. Operating income has been negative in 2025 and in the trailing period. Free cash flow is also negative. The dividend yield is 0%. Investor flows over 20 days show retail buying of about ₩2.0B against small net selling by foreign investors (₩0.8B) and institutions (₩1.1B). Foreign ownership slipped from 4.3% to 3.9% over 60 days. No news headlines are available in the data, so the reasons behind the moves cannot be confirmed here.

Business overview

Korea Real Estate Investment & Trust is a KOSPI-listed company in the Financials sector, founded on 1996-04-04 and listed on 2016-07-11. It has 252,489,230 listed shares and a market capitalization of about ₩265.4B. It is led by two co-CEOs, 최윤성 and 김성진. Revenue was ₩270.1B in 2023, ₩236.3B in 2024 and ₩184.4B in 2025, a decline of 12.5% in 2024 and 22.0% in 2025. Trailing revenue to H1 2026 was ₩206.1B. The data does not describe business segments.

Financial analysis

These figures come from filed financial statements. Trailing revenue to H1 2026 was ₩206.1B, with an operating loss of ₩15.4B (margin -7.5%) and net income of ₩40.9B (margin 19.9%). Return on equity was 4.1%. For 2025, operating income was -₩20.9B (margin -11.3%), net income was ₩21.0B and ROE was 2.1%. In 2024, operating income was ₩33.9B (margin 14.4%) while net income was -₩16.5B (ROE -1.7%). In 2023, operating income was ₩31.2B (margin 11.6%) and net income was -₩8.4B. Operating and net results have therefore moved in opposite directions in each of the last three years. On the balance sheet, liabilities to equity were 91.4%, cash was ₩68.5B and borrowings were ₩250.8B. Trailing free cash flow was -₩133.5B. Enterprise value is about ₩447.6B.

Valuation

The current P/E is 6.5, P/B is 0.3 and P/S is 1.3. EV/EBITDA is not available. Year-end P/B was 0.3 in 2023, 2024 and 2025, so the discount to book has been steady. The year-end P/E was 15.2 in 2025, and not meaningful in 2023 and 2024 because of net losses. Peers (Mirae Asset Securities, NH Investment & Securities, Samsung Securities, KIWOOM Securities, Samsung Card) show P/E of 3.4 to 7.5 and P/B of 0.5 to 0.9, and are much larger companies. The valuation model estimate per share is not available for this company, so no comparison with the ₩1,051 share price can be made.

Catalysts

  • The half-year report for June 2026 was filed on 2026-08-13, and the next set of results will show whether the operating loss narrows.
  • An investor relations event was held on 2026-08-24, which may have given further information on the business.
  • Several 5%+ holding reports were filed between July and October 2026, most recently on 2026-10-02, indicating changes in large shareholdings.
  • Insider shareholding reports were filed on 2026-10-22, which show movements in insider holdings.
  • The share price is near its 52-week low of ₩1,039, so flows in the coming weeks will show whether selling pressure continues.

Risks

  • Operating income has been negative in 2025 and in the trailing period, so core earnings are weak.
  • Net income exceeds operating income, so reported profit may depend on non-operating items that the data does not explain.
  • Trailing free cash flow of -₩133.5B against cash of ₩68.5B and borrowings of ₩250.8B adds financing pressure.
  • Revenue fell 12.5% in 2024 and 22.0% in 2025, and the data does not show a recovery.
  • The dividend yield is 0%, and foreign ownership is low and falling (3.9% from 4.3%), which limits support for the shares.

Closing view

The evidence is mixed. A P/B of 0.3 and a P/E of 6.5 point to a low valuation compared with book value and peers. At the same time, operating losses, falling revenue, negative free cash flow and no dividend explain much of the discount. Net profit looks better than operating results, but the data does not say why. No model estimate or news is available, so the picture rests on filed numbers and price action alone. Later filings will show whether operating results are improving.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Filings and data used

Report history

  1. Oct 22, 2026InitiationStart of coverage (reader request)Korea Real Estate Investment & Trust: Shares Near 52-Week Low as Operating Loss Persists Despite Positive Net Income

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information