Stock Commentary

PREIT declares stable dividend

Merkado Barkada
PREIT declares stable dividend

Premiere Island Power REIT [PREIT 1.64 unch; 89% avgVol] [link] declared a Q4/23 dividend of P0.0388/share, payable on May 13 to shareholders of record as of April 26. The dividend maintains PREIT’s annualized yield of 9.46%. The total amount of the dividend is P128 million, which is 89% of the P144 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 23.44%, up from its pre-dividend total return of 20.85%.

MB BOTTOM-LINE: And then there were two. PREIT’s declaration leaves only its Villar Family bigger brother, VistaREIT [VREIT 1.73, up 1.2%; 0% avgVol], and the chronically-neglected DDMP [DDMPR 1.18 unch; 91% avgVol] as the only two REITs that have yet to declare dividends for the Q4/23 period. Nice to see PREIT exceed the REIT Law minimum dividend ratio in its first full year of distributions. I don’t have a great grasp on why the quarterly ratios were so variable (89.9% in Q1, 92.7% in Q2, 108.9% in Q3, and 88.7% in Q4), but the cumulative distribution ratio of 94.8% is noteworthy. PREIT has 100% occupancy like its leasing-land-to-power-plants cousin, Citicore Energy REIT [CREIT 2.83, down 0.3%; 56% avgVol], but the size of its quarterly distributable income varies to a much greater extent in comparison to CREIT’s steady flow, and I haven’t yet done the research to know why this happens. 


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