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Legal Framework of Philippine Real Estate Investment Trust (REIT)

A Philippine Real Estate Investment Trusts (REIT) is a stock corporation established in accordance with the Philippine corporation code. The present corporation code in the Philippines is Republic Act No. 11232 (RA 11232). For purposes of clarity, a REIT, although designated as a “trust”, does not have the same technical meaning as “trust” under existingContinue reading “Legal Framework of Philippine Real Estate Investment Trust (REIT)”

Cemex (CHP) vs. Holcim (HLCM), HLCM better results, CHP more likely to be acquired

Cemex Holdings Philippines, Inc. (CHP) at 1.46 a share has a market capitalization of 19.69 Billion Pesos while Holcim Philippines, Inc. (HLCM) at 5.94 has a market capitalization of 38.33 Billion Pesos. For 1H 2020 HLCM generated 11.4 Billion Pesos of sales while CHP generated just 9.6 Billion Pesos. HLCM was able to translate itContinue reading “Cemex (CHP) vs. Holcim (HLCM), HLCM better results, CHP more likely to be acquired”

ATTENTION dividend investors, time to ditch AREIT (4.82%) for Double Dragon Prefs DDPR(6.38%)

AREIT debuted in the market with a 27 per share public offering. At that time we said that buying AREIT at 27 could inflict capital loss as the market will have to price it down to set the appropriate yield for AREIT which could be around 5.5% to 7%. At the time AREIT was listedContinue reading “ATTENTION dividend investors, time to ditch AREIT (4.82%) for Double Dragon Prefs DDPR(6.38%)”

Henry “Big Boy” Sy Jr. shuffling SM Investment (SM) shares, CHP surging

On August 12, 2020 Henry “Big Boy” Sy. Jr. moved 15,000,000 common shares of SM Investments Corporation (SM) from his brokerage account to a corporation which is also a controlling stockholder of SM. The transaction was crossed at 863.50 per share for a total of around 13 Billion Pesos. This transaction was disclosed by SMContinue reading “Henry “Big Boy” Sy Jr. shuffling SM Investment (SM) shares, CHP surging”

FGEN undervalued

First Gen Corporation (FGEN) and subsidiaries earned $183 Million for the period 1H 2020. What is better is that it was able to translate such earnings into cash from operations of $302 Million. The cash generated from operations allow FGEN to bolster its liquidity. FGEN’s balance sheet has a cash of $748.7 Million as ofContinue reading “FGEN undervalued”

PLDT (TEL) accumulating debt, future cash dividend in grave danger with duopoly gone

TEL has been gradually accumulating debt. As of June 30, 2020 (1H 2020) total long-term debt of TEL is at 199.7 Billion Pessos. That is a significant 28.2% increase from 155.8 Billion Pesos as of the end of December 31, 2018. It can be remembered that on October 2019 TEL initiated a consent solicitation fromContinue reading “PLDT (TEL) accumulating debt, future cash dividend in grave danger with duopoly gone”

APX trading like gold, despite negative free cash flows

Gold prices have surged in the wake of the COVID-19 pandemic as investors look for safer places to park their money. The jump in gold prices has boosted investors’ willingness to pump billions into the gold mining industry. Warren Buffet’s Berkshire Hathaway Inc. added to its portfolio a Canadian gold miner, Barrick Gold Corp. In the past, WarrenContinue reading “APX trading like gold, despite negative free cash flows”

ABS at the mercy of creditor banks

ABS-CBN Corporation (ABS) has finally submitted its first half 2020 (1H 2020) results. The results showed that it has the financial strength to continue its operations. It has cash, cash equivalents, and short-term investments of 18 Billion Pesos as of end of 1H 2020 while debts due in the next 12 months is only 0.5Continue reading “ABS at the mercy of creditor banks”

MM has priced in the promise of a future, how long can the market hold on to that promise?

MM is now trading at 3 times its IPO price of 1.00 a share. It is just two months since the IPO but its shares is already 3 times the IPO price and this is despite the fact that the IPO proceeds has not yet been fully used. Clearly the market has priced in theContinue reading “MM has priced in the promise of a future, how long can the market hold on to that promise?”

ACEN (AC Energy Philippines) burning cash from operations, value hinges on the execution of Ayala energy assets consolidation into ACEN

AC Energy Philippines Inc. (ACEN) has been burning cash from its operation during the first half of 2020 (1H 2020). It burned 0.9 Billion Pesos from its operation during 1H 2020, yet ACEN has steadily been rising. ACEN’s cash in its balance sheet as of end of 1H 2020 came from borrowings. Without the cashContinue reading “ACEN (AC Energy Philippines) burning cash from operations, value hinges on the execution of Ayala energy assets consolidation into ACEN”

ROCK facing heavy headwinds, may have to be avoided for now

No doubt the COVID-19 pandemic has wreaked havoc on the real estate industry. The pandemic has put to test the strength of the finances and operating capabilities of the real estate companies. Pandemic distinguishes the strongest from the rest. The biggest real estate company, SM Prime Holdings, Inc. (SMPH) is seen to weather the storm.Continue reading “ROCK facing heavy headwinds, may have to be avoided for now”

“Todamoon” AREIT holders chided by an Ayala Land independent director, dividend players should be ready

Real Estate Investment Trusts (REIT) are known for their yield not so much for capital gains. This is what we emphasized in our earlier commentary on AREIT. When AREIT was offered to the public, many positioned to speculate that from the public offering price of 27 it would spike up to the moon. When AREITContinue reading ““Todamoon” AREIT holders chided by an Ayala Land independent director, dividend players should be ready”

Day of reckoning has come AREIT declares .59/share cash dividend, cdiv to guide market to the yield it desires

We have reported earlier that AREIT may have to sink further until it finds the yield. In the said report we said that all the talks about its yield are all based on speculations from brokers, analyst, and commenters. We said at that time that AREIT’s yield is zero until AREIT declares dividend and itContinue reading “Day of reckoning has come AREIT declares .59/share cash dividend, cdiv to guide market to the yield it desires”

ATTENTION dividend investors – MWIDE to offer Perpetual Preferred Shares

Megawide Construction Corporation (MWIDE) has tapped RCBC Capital Corporation and PNB Capital as joint lead underwriters for the primary offer of series 2 non-voting perpetual preferred shares to raise 5 Billion Pesos. The dividend rate has yet to be set for the series 2 non-voting perpetual preferred shares. MWDE has outstanding preferred shares in theContinue reading “ATTENTION dividend investors – MWIDE to offer Perpetual Preferred Shares”

AREIT holders haunted by the ghost of CHP’s past

AREIT was down 11% as of end of trading day on Friday August 14, 2020 to closed at 24.10 Pesos from its debut price of 27.00 Pesos. The event refreshes the memories of the Cemex Holdings Philippines, Inc. (CHP) public offering in 2016. From 10.75 Pesos IPO price, over the years CHP gradually declined andContinue reading “AREIT holders haunted by the ghost of CHP’s past”

AREIT holders may have missed the difference between MM and AREIT, AREIT may have to sink further until it finds the yield.

MM and AREIT are two different public offerings, thus, the difference in results. Holders of AREIT may have missed the difference of the two public offerings. MM is a pure initial public offering. It means shares offered to the public comes from the unissued shares of MM or the so called “primary shares.” All theContinue reading “AREIT holders may have missed the difference between MM and AREIT, AREIT may have to sink further until it finds the yield.”

CHP could be a M&A play

Cemex Holdings Philippines Inc. (CHP) in a press release has disclosed that it had reached an agreement to amend its debt covenant with BDO. The debt agreement amendment was meant to defer the compliance of certain financial covenants until June 30, 2021. It could be surmised from that disclosure that had the financial covenants notContinue reading “CHP could be a M&A play”

Jollibee (JFC) Business Transformation – from Restaurant to what?, holders should brace for more pain

Jollibee peaked at 328.40 sometime in January of 2019. Before that, JFC acquired 100% of Smashburger an American fast-casual hamburger restaurant chain a for a total of around US$210 Million (around 11 Billion Pesos). JFC was then hunting for acquisitions in its bid to become a top 5 restaurant companies in the world. It appearsContinue reading “Jollibee (JFC) Business Transformation – from Restaurant to what?, holders should brace for more pain”

SMPH at 29 a piece is a golden opportunity to buy low a money printing machine

Just January of this year (2020) SMPH hit a high of 43.35, now it is at 29. It is down some 33%. It shed almost a third of its high. The COVID-19 pandemic exposes the qualities of every company listed in the stock exchange. The pandemic highlighted SMPH as a money printing machine. With theContinue reading “SMPH at 29 a piece is a golden opportunity to buy low a money printing machine”

SMPH Domination’s of PH Real Estate is still true

SM Prime Holdings Inc. (SMPH) – Real Estate Domination Posted on March 4, 2018 by ideasprime In 2017 SM Prime Holdings (SMPH) reported an impressive 15.8% growth in net income.  The reported net profit results show SMPH domination in Philippine real estate. The growth came mostly from the expansion of malls/retail space for rent and the consistent 7%Continue reading “SMPH Domination’s of PH Real Estate is still true”