Merkado Barkada
September 2, 2024 | 10:25am
Premiere Island Power REIT [PREIT 1.93 unch; 16% avgVol] [link], the Villar Family’s industrial land lease REIT, declared a Q2/24 dividend of P0.0326/share, payable on September 27 to shareholders of record as of September 13. The dividend has an annualized yield of 6.76% (no change) based on the previous closing price. The total amount of the dividend is P107 million, which is 90% of the P119 million in distributable income that PREIT reported for the quarter. Cumulatively, PREIT has distributed 89.9% of its H2/24 distributable income. Relative to PREIT’s IPO price, the dividend increased PREIT’s total stock and dividend return to 47.12%, up from its pre-dividend total return of 44.95%. PREIT’s YTD stock return is 25%; it has an estimated annualized yield of 6.76% and a TTM yield of 7.57%.
MB BOTTOM-LINE: And then there was one. With PREIT’s Q2 declaration, only DDMP [DDMPR 0.99 unch; 32% avgVol] has yet to declare this quarter. A company like PREIT–which earns monthly revenue on long-term industrial land leases to related parties–will not have the distributable income variance that we see in the other commercial REITs or mall REITs that are exposed to the ups and downs of the economy, the business cycle, and shorter lease terms. It’s still surprising to me that PREIT has the third-lowest yield on the PSE’s REIT roster, though. Would you rather have CREIT [CREIT 3.04 ?1.0%; 36% avgVol] at 6.45% annualized yield with its robust pipeline of future injections, or PREIT at 6.76% with its… 6.76% yield? I’m taking a few liberties to make this joke/observation; of course, PREIT’s sponsor/parent has additional projects that it could inject into PREIT to grow the dividend, but so far it’s done nothing even though it’s approaching its 2-year listing anniversary this December.
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