Pei requested authorization to call an Extraordinary Assembly in December to change its fee structure
The manager of the real estate investment vehicle, Pei Asset Management, reported revenue of $511,311 million in the first nine months of the year, translating into 15% growth compared to the same period last year.
Likewise, the vehicle reported improvements in its business margins. The NOI margin reached 82.7%; the EBITDA margin reached 70.8%, as a result of a 37.5% reduction in the real estate manager’s fees and other administrative expenses.
Taking only the three months ended in September, the company’s net income was $240,057 million, a 4.59% increase compared to the same period last year. Meanwhile, operating expenses rose 56.76% to $36,375 million.
Pei Asset Management reported during its results conference that the review and approval process with the Superintendencia Financiera is already underway to call the extraordinary meeting of the 2023 General Assembly of Investors, expected for the first days of December. According to an analysis by Davivienda, the fee structure would be changed at that Assembly.
Regarding vacancy levels, physical vacancy stood at 5.4% and economic vacancy at 7.7%, decreases of 58 basis points and 100 basis points, respectively, compared to the same period last year.
The leasing of vacant spaces, or total absorption, for the year reached 31,620 square meters, of which 50.6% was completed during the third quarter, driven by market dynamism, geographic diversification, and the arrival of new tenants.
In this context, tenant retention, reflected in renewed contracts, remained at 98.5%, measured by revenue. Over the past year, the Loan to Value (LTV) ratio decreased from 36% to 34%, a 210-basis-point decrease, of which 69 correspond to the third quarter of the year, reflecting the effect of asset value appreciation relative to the adjustment of lease rates with inflation.
Source:
https://www.larepublica.co/finanzas/resultados-de-pei-asset-management-tercer-trimestre-2023-3746212