JK River Stone REIT Faces Delisting Risk, Continues Net Loss in Q1

Following an embezzlement incident in 2025, the Korea Exchange notified the company of a delisting decision; a provisional injunction suspending the effect has been filed with the Seoul Southern District Court, putting the liquidation procedure on hold
Consolidated Q1 2026 operating loss of KRW 429 million and net loss of KRW 842 million, though losses narrowed from the same period last year (operating loss KRW 1,458 million, net loss KRW 1,513 million)
Separate Q1 operating loss of KRW 93 million and net loss of KRW 680 million
Consolidated retained earnings deficit of KRW -11.2 billion; not yet capital impairment but accumulated deficits
Full impairment loss of KRW 11.9 billion recognized on financial assets at FVTPL (including bonds with warrants) from related parties
KRW 28.7 billion in new long-term borrowings from Hana Bank and others, secured by MD Hotel Dongtan and Goksan
Change in largest shareholder to JK Core Value Co., Ltd. and corporate name change to 'JK River Stone REIT'
Subsidiary MD Hotel posted a net loss of KRW 204 million in Q1, indicating need for improved hotel profitability
There are 6 pending lawsuits (consolidated) and 4 (separate)
No dividends paid; no share buyback or cancellation