Bogotá, August 8, 2024. Pei announced its financial and real estate results for the second quarter of the year during its investor results conference, highlighting revenue of more than COP 185,000 million and an average daily trading volume for the PEI security in the market of COP 3,400 million so far this year.
Business results
In the second quarter of the year, the vehicle recorded revenue of more than COP 185,000 million, an increase of approximately 11% compared to the same period last year. These results are due to higher lease income, which naturally adjusts with inflation, the closing of vacancies at some assets, and the addition to the portfolio of new retail space at the Jardín Plaza shopping center in Cali and the expansion of the Hada logistics center in Barranquilla.
Regarding the vehicle’s operational indicators, NOI and EBITDA margins were 83% and 71%, respectively, results that demonstrate the business’s stability and strength amid a real estate market facing challenges linked to low economic growth. Nonetheless, lease-contract renewals for the quarter exceeded 97%, achieving a portfolio occupancy rate of close to 94%.
Capital markets activity
Following the inclusion of Pei’s equity securities in the MSCI COLCAP stock index, liquidity increased considerably, with trading volumes reaching up to COP 238,000 million in May, of which COP 139,000 million was traded in a single day. As a result, by the close of the first half of 2024 the security reached an average daily trading volume of COP 3,400 million and posted a 16.8% appreciation, closing June at COP 75,100 per security.
Debt and Distributable Cash Flow
With regard to debt portfolio management, by the close of the first half of 2024 Pei renegotiated close to 1.8 trillion pesos in financial liabilities in pursuit of lower rates and longer maturities. This enabled a reduction in the cost of financing of around 2 percentage points so far this year compared to the close of December 2023. Likewise, Pei announced the payment to investors of the Distributable Cash Flow generated in the second quarter of 2024 (the period from April 1 to June 30 of this year), totaling COP 38,016 million, equivalent to COP 888 per Security, in line with the 2024 projection to double the returns paid in 2023.
The payment will be made on August 15, 2024, and will be subject to applicable withholdings based on the tax status of each equity-securities investor.
For the second half of the year, Pei’s strategy will remain focused on leasing space at Atrio and a possible issuance of securities in the capital markets, according to the president’s message.
About Pei (PEI CB Equity)
Pei is a real estate investment alternative structured and managed by Pei Asset Management for 17 years, with more than 6,200 investors. It has built a portfolio of high-specification, income-generating assets totaling more than 1.14 million m2 of leasable area, with a diversified base of more than 1,400 tenants and a presence in more than 30 cities and municipalities across the country. The portfolio is valued at more than 9.5 trillion pesos and comprises four asset categories: corporate, commercial, logistics, and specialized use.