- In April, BRC Standard & Poor’s reaffirmed the ratings of equity securities at i-AAA, Portfolio Management at G-aaa, and Bonds at AA+.
- In May, the Sanitas Tequendama Medical Center joined the portfolio, the first specialized healthcare-sector asset, located in Cali, Valle del Cauca, with a leasable area of 3,552 m².
- In June, the issuance of the eleventh tranche of equity securities worth COP 816,500 million was carried out; this was the largest TEIS issuance in the history of Pei, with a demand of COP 1.4 trillion and a bid to cover of 1.71x.
- On August 15th, Pei made the payment of distributable cash flow to investors of equity securities, which was generated during the first half of 2019.
Bogotá, August 2019. PEI, the leading real estate investment vehicle in the country, managed by PEI Asset Management, held a conference call with investors (2019) to discuss the first-half results.
The presentation was led by Jairo Corrales, President of PEI Asset Management, and Jimena Maya, Manager of investor relations, who provided the audience with a detailed report on the management indicators for the real estate portfolio and the financial portfolio.
Highlights included, among other topics: the affirmation of the credit rating of the Portfolio Management Equity Securities and of the Bonds, which have remained at their highest levels for more than 8 years; the successful results of the largest securities issuance Pei has carried out in 13 years; the Distributable Cash Flow payment made to investors in August; the current occupancy status of the portfolio; and the new specialized assets added to Pei’s portfolio.
The eleventh tranche of the equity securities emission program allowed for the entry of 1,070 new investors, bringing the Pei to a total of 4,555 investors from pension funds, insurance companies, family offices, investment funds, and individuals. Thanks to the results of this issuance, the Pei was able to reduce its debt level to 22%, close the gap between the maturity profiles of contracts and credit lines, and decrease its borrowing cost by 40 basis points compared to the same period in 2018.
During the call, details were shared regarding the distribution of cash flow to investors of equity securities, which occurred on August 15th, corresponding to the first semester of 2019. The total amount distributed was COP 124,574 MM, equivalent to a payment of COP 288,753 for the title, resulting in a dividend yield of 5.4%.
The first semester of 2019 showed an average physical vacancy rate of 5% and an economic vacancy rate of 4.5%, however, the vacancy rate for Pei is significantly lower than that of the market, which is above 10% in all categories.
Additionally, 8,438 m² were leased and 177 contracts equivalent to COP 1,055 MM were renewed; furthermore, in May, Pei added to its specialized-asset portfolio the first specialized healthcare-use property, the Sanitas Tequendama Medical Center located in the city of Cali, with a leasable area of 3,552 m²; this is the first of several BTS assets that will join the portfolio under a long-term contract with the Sanitas group.
Pei continues to reinforce a long-term strategy, which is reflected in its profitability. In this regard, it should be noted that the profitability over 5 years is 11.67% EA, and the profitability since the start of the vehicle is 13.55% EA.
The call ended with a question-and-answer session for investors, which was facilitated by the PEI Asset Management team.