Merkado Barkada
December 11, 2024 | 8:00am
Ayala Land [ALI 28.15 unch; 67% avgVol] [link] disclosed that it sold 75 million shares of its subsidiary, AREIT [AREIT 37.95, down 4.2%; 1030% avgVol], in an oversubscribed block sale private placement. The sale generated P2.775 billion at a per-share price of P37.00, which was a 6.6% discount to AREIT’s market price of P39.60 at the time the deal was negotiated. AREIT’s shares are up 14% YTD and up 24% over the past year as REIT valuations have risen due to BSP rate cuts.
MB bottom-line: This is ALI’s fourth block sale of AREIT shares. The last block sale (also for 75 million shares) was in September at P36.20/share. AREIT traded vaguely lower for the next five trading sessions but then went on a 10% pump over the following two weeks. I’m not saying that’s going to happen here, just saying what has happened in the past under generally similar circumstances. AREIT is one of my holdings that I’ve disclosed before, and while I have used these dips to load up, I’m honestly out of dry powder. Perhaps that’s the curse of being a PSE investor: there’s always another dip to lean into. Well, I’ve leaned into all the dips I can. I’m going to have to wait until the Q3 divs payout to go on another shopping spree.
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