- In 2019, Pei, Colombia’s leading real estate investment vehicle, exceeded 6 billion pesos in assets under management, closing the period with 982,000 m2 of leasable area and 1,525 tenants, represented by over 2,000 contracts.
- Pei’s eleventh and largest Issuance of Equity Securities ever –COP 816,500 million– had a bid to cover of 1,7 times.
- In the second half of the year, Pei placed its Second Issuance of Ordinary Bonds — worth COP 500,000 MM– exceeding 1.6 times the amount offered and completing one billion pesos in Ordinary Bonds.
Bogotá. Pei Asset Management, Pei’s real estate manager, held Pei’s Investors first Conference of 2020 to present year 2019’s results.
Jairo Corrales, PEI Asset Management’s President, and Jimena Maya, PEI Asset Management’s Investor Relations Manager, led the conference call and, within the highlights of 2019 referred to the asset portfolio’s management and stabilization, the Equity Securities’ Eleventh Issuance, and the Second Issuance of Ordinary Bonds.
In connection with the management of the assets, the tenants’ agreements renewal and retention capability were highlighted, aiming at long-term contracts and relationships in a challenging year for the vehicle, given the first expiration of those agreements reaching 10 years.
As a second point, the Equity Securities’ Eleventh Issuance held in June –the largest so far offered to the market, for COP $816,500 million–, was over-demanded 1,71 times and, through it, Pei welcomed more than 1,000 new investors.
With the Ordinary Bonds’ Second Issuance, which took place in November and was worth COP $500,000 million, Pei completed a total of 1 billion pesos in ordinary bonds placed in the market Colombian. The issuance, over-demanded 1,6 times, offered fixed rate short and medium-term series indexed with the CPI, under conditions potentializing the vehicle’s profitability.
Financial indebtedness at the closing was COP $1,54 bn, with an average debt service amounting to 7,07% EA, decreasing 18 bps compared to the prior year. This, given by the implementation of capital structure strategies such as the issue of Securities, Bonds, and new credit facilities with more competitive rates. With the above, the vehicle reached a leverage level of 24% on the assets.
It is worth noting that Pei exceeded 6 billion pesos in assets under management by the end year, with 982,000 m2 under management and 1,525 tenants represented by over 2,000 contracts.
In this period, 3 new assets entered the portfolio: Nuestro Cartago Shopping Center, the second shopping center of the Nuestro brand, incorporated to the portfolio with an occupancy above 90%; Sanitas Tequendama in the city of Cali, the first health sector specialized asset, constructed under the built to suit scheme; and an additional floor in One Plaza building in Medellín.
The acquisitions made in the first days of January 2020 were also highlighted in the conference call. These acquisitions exceeded one million square meters of leasable area, as 33% of Atrio’s North Tower in Bogotá were acquired, as well as the remaining percentage of Plaza Central Shopping Center, thus consolidating Pei’s ownership of the asset.
In relation to the Securities’ liquidity, their daily trading volume amounted to COP $3,291 million. Also, the vehicle reached 4,453 investors throughout the year.
As to the vehicle’s profitability, the dividend yield was 5,25% and the 12-month profitability was 9,8% EA, remaining above the market profitability.
Finally, the conference call was closed with a Q&A session, whereby Pei Asset Management’s team answered Pei’s investors questions.