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 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 of […]
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 be […]
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 is […]
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 news […]
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-registered […]
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 listed […]
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 […]
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 it […]
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 the […]
