“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 AREIT was launched to the public there was no dividend declared to guide the public as to its pricing. All the talks then about their yield are speculations. We believed that without the dividend guidance AREIT sunk to chase a zero yield.

Subsequently, AREIT declared two-quarters of dividend amounting to 0.59 per share and declared a policy of quarterly dividend declaration. This appears to settle the dust.

The events that transpired prompted Sir Rex Mendoza an independent director of Ayala Land, Inc. and President & Chief Executive Officer of Rampver Financials to go online and make a lecture about AREIT and REIT investing. Below is his lecture on youtube.

It is now clear that AREIT is a dividend play but we do not believe that now is the right time to buy. It pays to wait until the “todamoon holders” have completely exited AREIT. Dividend players should be ready with their funds. Time will come to lock-in to an attractive yield.

Disclaimer: This is an independent analysis for discussion purposes with the aim of giving stock traders and investors an independent perspective.  Accuretti Systems Inc. does not hold any shares of AREIT and Ayala Land, Inc..

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