Bogotá, November 9, 2023. Pei Asset Management, real estate manager of the Pei vehicle, presented the business’s key indicators during the third-quarter results conference, highlighting revenue of COP 511,311 million in the first nine months of the year, up 15% compared to the same period last year.
Likewise, business margins improved: as a result of operational efficiency, the NOI margin reached 82.7%; the EBITDA margin, for its part, reached 70.8%, resulting from a 37.5% reduction in the real estate manager’s fees and other administrative expenses.
Vacancy and new business.
Regarding vacancy levels, physical vacancy stood at 5.4% and economic vacancy at 7.7%, decreases of 58 basis points and 100 basis points, respectively, compared to the same period last year.
A notable indicator was the leasing of vacant spaces, or total absorption, for the year, which reached 31,620 m2, of which 50.6% was completed during the third quarter, driven by market dynamism, geographic diversification, and the arrival of new tenants. In this context, tenant retention, reflected in renewed contracts, remained at 98.5%, measured by revenue.
Capital structure (debt and Distributable Cash Flow).
Over the past year, the Loan to Value (LTV) ratio decreased from 36% to 34%, a 210-basis-point decrease, of which 69 basis points correspond to the third quarter of the year, reflecting the effect of asset value appreciation relative to the adjustment of lease rates with inflation.
Likewise, during the quarter the cost of debt continued to decline, from 15.47% in June, the year’s highest point, to 14.86% at the September cutoff, a decrease of 61 basis points. This was the result
of declining 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.
In addition, in the third quarter of 2023 the vehicle’s operations generated a Distributable Cash Flow for investors of close to COP 18,580 million, equivalent to COP 434 per Security, to be paid on November 16.
Capital markets activity.
So far this year, the Security’s price on the secondary market has risen 42%, reaching COP 53,000 at the close of October 2023. In addition, the year-to-date average daily trading volume (ADTV) is COP 646 million, 2.2 times higher than the same period last year.
Finally, Pei Asset Management reported during its results conference that the review and approval process with the Superintendencia Financiera is already underway to call the extraordinary meeting of the 2023 General Assembly of Investors, expected for the first days of December.
About Pei (PEI CB Equity)
Pei is a real estate investment alternative structured and managed by Pei Asset Management, with more than 6,300 investors. It has built a portfolio of investments totaling more than 1.14 million m2 of leasable area 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 more than 1,600 tenants