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After AREIT deal release, ALI trades 2.47 times 65 Day Average Volume

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 weakenedContinue reading “After AREIT deal release, ALI trades 2.47 times 65 Day Average Volume”

ALI liquifying real assets through AREIT, pioneering move to strengthen ALI

ALI is a highly leverage real estate company. As of 30 September 2021, total liabilities are 1.8 times total equity. With the pandemic slowing down real estate sales and rental revenues, leverage real estate developers like ALI must be creative in raising the necessary funds to pay off debts and fund developments. Investment properties ofContinue reading “ALI liquifying real assets through AREIT, pioneering move to strengthen ALI”

At present rate of earnings, market may price down AREIT for a satisfactory dividend yield

On November 3, 2020 AREIT, Inc. reported its 3Q20 financial results. For the months ending September 30, 2020 generated an earnings per share of 0.82.  That earnings if annualized would yield an annual earnings per share of 1.0933. According to the Philippine REIT law at least 90% of earnings of a REIT entity should beContinue reading “At present rate of earnings, market may price down AREIT for a satisfactory dividend yield”

ALI (Ayala Land) unloads Ortigas mall to AREIT for 5.1 Billion Pesos, transaction may bode well for ALI holders but not so for AREIT

AREIT just announced that it is buying The 30th from its sponsor, Ayala Land (ALI) for 5.1 Billion Pesos.  The 30th is a shopping mall built and managed by Ayala Malls. It is the first Ayala Mall in Ortigas Center as well as in Pasig City. The mall was named “The 30th” as it isContinue reading “ALI (Ayala Land) unloads Ortigas mall to AREIT for 5.1 Billion Pesos, transaction may bode well for ALI holders but not so for AREIT”

AREIT might just go high-yield, was it oversubscribed?

Prior to the AREIT listing date, AREIT sponsor – Ayala Land, Inc. (ALI) disclosed to the Philippine Stock Exchanged that the AREIT IPO was oversubscribed by twice the base offer, with “high-quality” domestic and international institutional investors participating in the book-building notwithstanding the continuing coronavirus (COVID19) pandemic. The “oversubscription” was widely reported in various newsContinue reading “AREIT might just go high-yield, was it oversubscribed?”

No News, AREIT officially acquires Teleperformance Cebu

Pursuant to the REIT Plan dated 24 July 2020, the AREIT entered into a Deed of Absolute Sale with ALO Prime Realty Corporation (“APRC”), a wholly-owned Subsidiary of its Sponsor, Ayala Land, Inc. (“ALI”), for the acquistion of Teleperformance Cebu for purchase price of PhP 1,450,000,000.00, exclusive of value-added taxes. Teleperformance Cebu is a PEZA-registeredContinue reading “No News, AREIT officially acquires Teleperformance Cebu”

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%)”

“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”

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.”

AREIT’s IPO success is its greatest threat, ALI the only beneficiary

We discussed earlier that the AREIT public offering is a value crystallization exercise of Ayala Land, Inc. ($ALI). The AREIT offering was a way for ALI to unlock the value of its assets. The AREIT public offering will raise about 13.6 Billion Pesos for ALI which ALI badly needs. ALI is facing current debt repaymentContinue reading “AREIT’s IPO success is its greatest threat, ALI the only beneficiary”