Bogotá, February 8, 2024.
Pei Asset Management, the real estate manager for the Pei vehicle, announced during the fourth quarter results conference of 2023 the financial and real estate indicators of the business, highlighting revenues of COP 703,580 million at the close of 2023, representing a growth of 15% compared to the same period of the previous year, and an occupancy rate for the real estate portfolio near 96%, the highest in the last five years.
Similarly, favorable results were achieved in the business margins, with a NOI margin reaching 82.6%; and EBITDA margin increased by 551 basis points, closing the year at 71%, due to the reduction in operating vehicle cost structure.
Tenants and leases
The vacancy rate reached a record high, ending the year at 4.3%, with a decrease of 135 basis points. The logistics category was particularly noteworthy, closing with an occupancy rate of 100% in the 2023. In addition, total leasable area reached 52,463 m2, representing an increase of 77.6% compared to 2022.
The above is based on Pei’s strong position in the Colombian real estate market, its geographic diversification strategy, categorization of high-specification assets, and tenant segmentation. In this context, a tenant retention rate of 98% was maintained.
Capital structure (debt and distributable cash flow)
During the year, there was a trend of decreasing Loan-to-Value ratio, which decreased from 36% to 34%, a decrease of 190 basis points, due in part to higher asset valuations resulting from increased rental income. Furthermore, the cost of debt decreased from 14.21% in 2022 to 14.08% at the end of 2023, due to reduced inflation levels. In the fourth quarter of 2023, the vehicle generated a distributable cash flow for investors of COP 26,028 million, which is an amount of COP 608, payable on February 14th.
Market dynamics
Finally, the price of the title in the secondary market increased to the market price of 80%, reaching COP 64,300 at close on 2023, compared to the previous year. Similarly, there was a notable increase in the average daily trading volume of the title, from COP 72 MM in December 2022 to COP 665 MM in December 2023, representing an increase of 9.2 times.
At 2023, even amidst the challenges of the macroeconomic environment, Pei achieved tangible results in its real estate portfolio, highlighting its diversification and the specific strengths of its tangible assets. The vehicle is preparing for a new stage in the evolution of the business and will continue to contribute to the development of the country from the real estate investment industry.
About Pei (PEI CB Equity)
Pei is a real estate investment and management company owned by Pei Asset Management, with over 6,400 investors. It has consolidated a portfolio of investments in more than 1.14 million square meters of leasable area in 32 cities and municipalities across the country, valued at over 9.2 trillion pesos, across four asset categories: corporate, commercial, logistics, and specialized use. Pei leases its assets to a diversified base of more than 1,600 tenants.