Collaboration with tenants, contract retention, and leverage management are key to vehicle stability.
- The commercial management enabled a contract retention rate of 92% with more than 61.000 m.2 properties seized and more than 6 thousand meters of land leased in areas that were previously available.
- The physical vacancy rate was located at 8.9% and the economic vacancy rate at 10.3% on average, year over year.
- The debt-to-asset ratio was at 30%, with 11% in short-term debt and the remaining 89% in long-term obligations.
- The average daily transaction volume of TEIS for the year-to-date reached COP 2,196 million.
- The first quarterly dividend payment of COP 12,594 million will be made on November 17.
- The vehicle is being prepared for the third issuance of ordinary bonds, which is expected to take place before the completion of project 2020.
Bogota, November 2020. The situation created by the health emergency associated with COVID-19 has motivated intense and constructive collaboration with tenants, in order to prioritize long-term relationships based on flexibility and innovation.
Support for tenants has resulted in agreements related to the impact of the situation on each asset category, with shopping centers accounting for 87% of the relief provided.
During the quarter ending in September, there was a trend of reopening and traffic across different categories, with logistics and industrial assets accounting for 94% of user traffic. Commercial assets recorded visitor traffic of 53% as of September, which allowed for sales levels close to 75% compared to the same months of the previous year.
Both physical and economic vacancy rates increased by 0.8 and 1.1 points respectively in the last quarter, primarily due to the termination of contracts with commercial property tenants. These cases have been particularly prevalent among tenants in segments such as children’s entertainment, gyms, and some restaurants, as well as local brands that had previously experienced payment difficulties. In addition, there has been an increase in the occupancy rates of available areas in logistics and industrial assets, which will positively impact vacancy indicators in these categories in the following months.
The cumulative operational revenue for the vehicle closed at COP 325,190 MM in the third quarter of the year, registering a decrease of 4.4% compared to the COP 340,069 MM achieved in the same period of the previous year. This result reflects the relief measures granted as a consequence of the Covid-19 situation, which has had an impact on revenue of 51,551 MM by the end of September.
The first quarterly dividend payment of 12,594 million (COP 29,193 per Title) will be made on November 17th. The total dividends paid in 2020, including those paid in February, August, and the one to be paid this month, amount to 4.79%.
The net portfolio value amounted to COP33,341 MM, representing 7.38% of the revenue from the previous 12 months. The net portfolio turnover decreased from 32 days at the end of the second quarter to 23 days at the end of the third quarter. This indicator highlights that COP 18,481 million corresponds to current assets associated with the relief provided by the vehicle, which had healthy collection during the third quarter of the year.
The process of updating the valuations of portfolio assets has continued to progress throughout the year. As of the third quarter, appraisals were completed for 81% of the assets under management, representing COP 5.1 Bn in value, resulting in a total impact of -1.04% on the book value of the assets; this impact has already been incorporated into the daily unit value.
Third and fourth quarter of 2020
During the conference call, the following relevant activities from 2020’s third and fourth quarters were highlighted:
Third issuance of Ordinary Bonds: The company is preparing to issue its third series of ordinary bonds, with the aim of replacing debt with financial institutions, further diversifying its long-term funding sources, and taking advantage of current market conditions to reduce borrowing costs.
New Legal Representative for Investors in Fixed Income Securities (Pei): During the third quarter, the Pei Investor Ordinary Assembly was held in two convocations; with a quorum of 70.52% of the TEIS in circulation, Fiducoldex was elected as the new legal representative of the Pei title investors, replacing Colmena Fiduciaria.
Activity in the Capital Market: The vehicle continues to prepare for its migration to the variable income trading platform that the BVC postponed for April 21, 2021.