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ALI (Ayala Land) survives through financing activities as it burns cash on operations

With all the right pedigree, relationships, and resources it has been a breeze for Ayala Land, Inc. (ALI) to weather the COVID-19 pandemic through financing activities. At the onset of the pandemic, ALI quickly organized the first ever Real Estate Investment Trusts (REIT) in the country to raise funds. The AREIT public offering raised roughlyContinue reading “ALI (Ayala Land) survives through financing activities as it burns cash on operations”

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”

Ayala Land’s (ALI) short-term and current debt at 54 Billion Pesos as of end of 1H 2020, enough to give shareholders some thrill

First semester 2020 results of Ayala Land, Inc. (ALI) showed that its short -term debts amounted to 41.5 Billion Pesos while the current portion of the long-term debts amounted to 12.5 Billion Pesos for a total of 54 Billion Pesos. This figure should make ALI shareholders nervous because as of end of the first semesterContinue reading “Ayala Land’s (ALI) short-term and current debt at 54 Billion Pesos as of end of 1H 2020, enough to give shareholders some thrill”

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%)”

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”

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.”