Mirae Asset Maps Realty, a publicly offered real estate investment company, said it will pay an annual dividend of 300 won per share over the medium to long term and lift its price-to-net-asset-value (P/NAV) ratio to 0.8 times under a corporate value enhancement plan.
The company said on Oct. 21 that it had disclosed the plan the previous day, centered on stable dividends, improved market valuation, portfolio efficiency and stronger shareholder communication.
Its key management indicator is P/NAV, which divides the share price by net asset value (NAV) per share. A reading below 1 means the stock is trading at a discount to the net asset value of the assets it holds. Mirae Asset Maps Realty's P/NAV has improved steadily, from about 0.5 times at the end of September last year to 0.6 times at the end of March this year and 0.7 times at the end of September. The company plans to raise it to 0.8 times, or to the average of comparable listed real estate investment vehicles, over the medium to long term.
For dividends, the company set targets of 142 won per share for the second half of this year and 150 won per share for the first half of next year. Combined, the two semiannual payouts come to 292 won per share, or about 5.8% of face value. Over the medium to long term, it aims to pay an annual dividend of 300 won per share, securing a payout base of about 6% based on face value.
The company is also working to improve the profitability of its holdings. As of the end of September, the appraised value of its investment assets stood at 1.5194 trillion won, up 92.3 billion won from 1.4271 trillion won a year earlier. Operating revenue rose to 36.1 billion won from 33.6 billion won. Mirae Asset Maps Realty plans to strengthen profitability by raising occupancy rates at major properties and improving lease terms to reflect market conditions when contracts expire.
The company will also disclose the operating status of major assets, net asset value and its dividend and capital allocation policies through the investor relations channel on its website, and will review progress on the value enhancement plan each year. An official at Mirae Asset Global Investments said the firm plans to upgrade its management with a focus on capital efficiency and cash flow per share while maintaining a stable dividend base and the competitiveness of its prime assets. The official added that the company will strengthen communication with shareholders so that the intrinsic value of its holdings is appropriately reflected in the market.