Premiere Island Power REIT declares Q1 cash dividend
Premiere Island Power REIT [PREIT 1.51 0.7%; 121% avgVol] [link] declared its Q1 cash dividend of P0.0299/share, payable on July 17 to shareholders of record as of July 7. The dividend has an annualized yield of 7.92% based on the previous closing price, which is smaller than PREIT's pre-dividend annualized yield of 9.5%.
The total amount of the dividend is P98 million, which is 90% of the P109 million in distributable income that PREIT reported for the quarter. Relative to PREIT's IPO price, the dividend increased PREIT's total stock and dividend return to 9.2%, up from its pre-dividend total return of 7.21%.
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This is PREIT’s first proper quarterly dividend, and it’s probably not what IPO investors were expecting.
The company’s REIT Plan forecasted that it would maintain a yield of 9.6% based off its IPO price of P1.50/share, and based on P0.1434/share of total annual dividends. This dividend extrapolates out to an estimated annual dividend of just P0.1196/share. That’s significantly lower.
The company didn’t provide a press release with the declaration to provide context as to why this dividend might be lower than forecasted in the REIT Plan, but PREIT has a little bit of a history of doing stuff like this, even if it’s only been on the exchange for less than a year. If we assume that this dividend is representative of what it will declare for the rest of the year, PREIT would need to drop 17% to P1.25/share for this income stream to represent the forecasted 9.6% yield.
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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.
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