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Stock Commentary

VistaREIT declares first div, still waiting on clarification

Merkado Barkada
VistaREIT declares first div, still waiting on clarification

VistaREIT [VREIT 1.75 0.57%] [link] declared a Q2 dividend of P0.021/share, payable September 20 to shareholders of record on August 30.

This is the retail REIT’s first dividend, though the REIT Plan provided by the Villar Family said that investors should expect to see a full-quarter dividend that is around P0.036/share.

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We’ll have to wait for VREIT to publish its Q2 earnings report to understand this div.

Considering VREIT only conducted its IPO in the middle of June, just two weeks before the end of Q2, we need to know the amount of Q2 this distributed income represents to figure out the annualized yield of this dividend.

For example, if the dividend only represented the final two weeks of the quarter, we’d “quarterize” the amount of the dividend by dividing it by two (to find the weekly dividend rate), then multiplying that figure by 13 (the number of weeks in a quarter).

Doing that gives us a "quarterized" div of P0.1365/share, which would provide an annualized estimated yield of 7.80%, which is about 5% lower than the projections provided in the plan.

There’s nothing stopping the family from declaring a dividend for income earned prior to the IPO, since the IPO itself was just the first time that the company’s stocks were widely traded on a public market, not the first day of the company’s operation.

Barkadans might remember how Citicore Energy REIT [CREIT 2.49 1.63%] declared a special dividend just after its IPO in February, from income generated in the previous year. So, this div could be anything; let’s wait for clarification.

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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.

PHILIPPINE STOCK EXCHANGE

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VISTAREIT

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