ALI traded at 2.47 times 65-day average trading volume, a day after AREIT made a press release that it is boosting dividends and eyeing a 15 Billion Peso property for share swap with ALI.
The elevated trading volume could be attributed to investors positioning for an eventual rebound in ALI taking advantage of the weakened ALI share price as foreign investors dumps ALI. Investors may have seen that ALI with AREIT may have developed the proper tool kit to ride the pandemic through.
It can be gleaned from the AREIT press release, that ALI has created an efficient CAPITAL RECYCLING machine in AREIT. With AREIT, ALI is able to encash the value of its investment properties stuck in its balance sheet which otherwise would just be paper gains if marked to fair values.
With the 15 Billion property for share swap, ALI will be realizing gains on the value of the properties. The infusion of the new assets into AREIT will boosts the yield of AREIT. With AREIT high yielding, ALI can then place/sell the shares it received from the swap for an even higher price to yield-hungry investors. Imagine the compounding of gains.
The ability to crystallize the value of its holdings is what sets Ayala Corp. apart from other conglomerates. It seems that AC has employed a balanced scorecard and have a developed a road map to creating shareholder value.
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