- In April, BRC Standard & Poor’s affirmed the i-AAA rating for Equity Securities, the G-aaa rating for Portfolio Management, and the AA+ rating for Bonds.
- 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 Eleventh Tranche Equity Securities Issuance was carried out for COP 817 billion; the largest TEIS issuance in Pei’s history, with demand of COP 1.4 trillion and a bid-to-cover ratio of 1.71x.
- On August 15, Pei made the Distributable Cash Flow payment to Equity Securities investors, 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 the first-half 2019 results teleconference for the vehicle’s investors.
The call was led by Jairo Corrales, President of PEI Asset Management, and Jimena Maya, Investor Relations Manager, who provided the audience with a detailed report on the real estate portfolio’s management indicators and the financial portfolio’s management indicators.
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 Issuance Program brought in 1,070 new investors, bringing Pei’s total to 4,555 investors, including pension funds, insurance companies, family offices, investment funds, and individuals. As a result of this issuance, Pei was able to reduce its leverage level to 22%, close the gap between contract-maturity and loan-maturity profiles, and lower its cost of debt by 40 basis points compared to the same period in 2018.
During the call, details were shared of the Distributable Cash Flow payment made on August 15 to Equity Securities investors for the first half of 2019. The total amount distributed was COP 124,574 MM, corresponding to a payment of COP 288,753 per Security, equivalent to a dividend yield of 5.4%.
The first half of 2019 saw average physical vacancy of 5% and economic vacancy of 4.5%; nonetheless, Pei’s vacancy is considerably lower than the market’s, which is above 10% across 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 outlook, which is also reflected in its returns; in this regard, it is worth noting that 5-year returns stand at 11.67% EA and returns since the vehicle’s inception stand at 13.55% EA.
The call closed with a Q&A session with investors, addressed by the PEI Asset Management team.