Comment on the shares: Filinvest REIT declares a cash dividend of 0.112 P / share at an annualized return of 6.14%
September 2, 2021 | 8:45 am
The cash dividend of 0.112 P / share (P 548 million in total) was declared by Filinvest REIT [FILRT 7.18 1.70%] of its second quarter adjusted operating funds (AFFO) of P 521 million (net income of P 411 million). Dividends are payable on September 30, to shareholders of record on September 15. The dividend provides a projected annualized return of 6.14% based on the closing price of FILRT yesterday, and a projected annualized return of 6.30% based on the IPO price of FILRT of 7.00 P . /to share. This is in line with FILRT’s statements during its IPO campaign that it would maintain a 6.3% return until 2021.
One thing that stands out is that the second quarter dividend is 105% of FILRT’s second quarter AFFOs. Although the REIT law states that a REIT must distribute at least 90% of its distributable income (adjusted net income), it is not against this law for a REIT to distribute more money to shareholders than it does. it did not gain any during the quarter, provided it still crosses the 90% mark at the end of the year. FILRT had nearly 1.3 billion pesos in cash and cash equivalents at the end of the second quarter, so it won’t be difficult to make ends meet even if it pays more than it earns (for moment).
Is this level of payment sustainable? Probably not indefinitely, but this level of distribution was part of the pitch that FILRT and the Gotianun family made to investors during the FILRT IPO and it shouldn’t be a challenge for the REIT to maintain it for the rest of the year. the year. For comparison, we can consider AREIT [AREIT 37.15 0.95%], which distributed P478.8 million to shareholders in the form of dividends in the second quarter on AFFO’s P475 (payout ratio of 90.7%).
Merkado Barkada is a free daily newsletter on PES, investing and doing business in the Philippines. You can subscribe to the newsletter or follow on Twitter to receive full daily updates.
Merkado Barkada’s opinions are provided for informational purposes only and should not be taken as a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so every investor should do their due diligence before trading, as the facts and figures in each particular article may have changed.