Bogotá, November 9, 2023. Pei Asset Management, real estate manager of the Pei vehicle, announced during the third-quarter results conference the business’s key indicators, highlighting revenues of COP 511,311 million in the first nine months of the year, up 15% compared to the same period last year.
Furthermore, improvements were achieved in business margins: driven by operational efficiency, the NOI margin reached 82.7%; while the EBITDA margin reached 70.8% as a result of a 37.5% reduction in real estate management fees and other administrative expenses.
Vacations and new businesses.
Regarding vacancy rates, there were behaviors of [5.4%] for physical vacancies and [7.7%] for economic vacancies, with a reduction of [58] basis points and [100] basis points, respectively, compared to the same period of the previous year.
A key indicator was the leasing of vacant spaces or complete absorption during the year, reaching 31,620 m2, of which 50.6% were finalized in the third quarter due to market dynamism, geographical diversification, and the arrival of new tenants. In this context, tenant retention was maintained, represented by renewed contracts totaling 98.5%, measured by revenue.
Capital structure (debt and distributable cash flow).
Over the past year, the debt-to-asset ratio (Loan to Value or LTV) has decreased from 36% to 34%, representing a decrease of 210 basis points. Of this change, 69 points relate to the third quarter of the year, which is evident in the appreciation of asset values relative to adjustments in rental rates due to inflation.
Similarly, during the quarter, the cost of debt continued to decrease, falling from 15.47% in June, the highest point of the year, to 14.86% in September, representing a reduction of 61 basis points. This was due to
regarding the decrease in inflation, which fell from 13.34% in March to 10.99% in September, and the stability of the IBR between 12.2% and 12.4% since February. However, it was noted that the decline in rates has been slower than projected.
Furthermore, in the third quarter of 2023, the vehicle operation generated distributable cash flow for investors, amounting to approximately COP 18,580 million as a utility, which is equivalent to COP 434, per Title and will be paid on the next 16 in November.
Market dynamics.
Throughout the year, the price of the title in the secondary market has increased by 42%, reaching COP 53.000 by the end of October 2023. Additionally, the average daily trading volume (ADTV) for the year-to-date is COP 646 million, which is 2.2 times higher than that recorded in the same period of the previous year.
Pei Asset Management announced during its earnings conference that the review and approval process by the Financial Superintendency to convene the extraordinary general meeting of shareholders (2023) is underway, with an estimated completion date in early December.
About Pei (PEI CB Equity)
Pei is a structured and managed real estate investment alternative offered by Pei Asset Management, with over 6,300 investors. It has consolidated a portfolio of investments in more than 1.14 million m2 of leasable area space across 32 cities and municipalities in the country, valued at more than 9.2 trillion pesos, in four asset categories: corporate, commercial, logistics, and specialized use. Pei leases its assets to a diversified base of over 1,600 tenants.