LOTTE REIT Co Ltd (330590.KS) Q4 2024 Earnings Report

LOTTE REIT’s QQ4 2024 results show a resilient operating profile with revenue growth and solid margins, underpinned by strong cash flow generation despite a high leverage footprint. Revenue reached KRW 34.76 billion for the quarter, up 16.1% year over year and 12.6% quarter over quarter, supported by a stable core rental book and favorable operating leverage. However, the report includes a sizable negative line item from total other income/expenses which partially offset operating gains, resulting in a net income of KRW 6.08 billion (EPS KRW 21.04) for the quarter, up sharply from KRW 1.85 billion a year earlier (EPS KRW 7.60).

From a balance sheet perspective, LOTTE REIT maintains a large asset base (total assets KRW 2,623.65 billion) with substantial indebtedness (total debt KRW 1,306.23 billion; net debt KRW 1,292.96 billion) and a debt-to-capitalization ratio of ~0.53, indicating meaningful leverage typical of sizable Korea-based REITs. The company generated positive operating cash flow (KRW 27.68 billion) and free cash flow of the same amount, with a notable equity issuance (KRW 145.84 billion) during the period, signaling active balance sheet management and ongoing financing flexibility.

Market positioning remains favorable given LOTTE REIT’s brand synergies and exposure to high-quality retail assets. The dividend yield implied by the data stands around 3.67%, and earnings quality appears solid on an operating basis, but the capitalization and liquidity profile warrants monitoring in a rising-rate environment. The absence of explicit management guidance in the provided materials suggests investors should vigilantly track occupancy, rent escalations on renewals, refinancing risk, and portfolio optimization initiatives going forward.