PREIT [PREIT 2.40 unch; 64% avgVol] [link] declared a Q1 money dividend of P0.0332/share (+1.8% y/y, -39.4% q/q) on P121 million of distributable revenue (+1.6% y/y, -39.6% q/q)., for a dividend payout ratio of 90.3%. The dividend is payable on June 27 to shareholders of document as of June 10.
MB bottom-line: So clearly the outlier there may be the This fall/24 dividend that was waaaay bigger than traditional. Taking a look at PREIT’s 10 quarters of dividend historical past, if you happen to ignore the primary div (which was one thing of a catch-up), the This fall/24 was like a freak wave that appeared out of nowhere, showered the boats that by some means knew to anticipate it with gold, after which disappeared. The quantity of distributable revenue that PREIT generates is pretty constant: like this quarter, it’s normally about P120 million (give or take one million). The distributable revenue for This fall/24 was P200 million. Why? Properly, because of PREIT’s request to file an extension to file its Annual Report, PREIT didn’t submit any knowledge on its This fall operations till Might 2, greater than two weeks after declaring the unusually massive dividend. Digging into the Annual Report now, PREIT doesn’t focus on its This fall efficiency particularly, however it does make an offhand nod to elevated FY24 profitability via recognition of a further P52 million of “variable lease revenue”. Beneath the phrases of the variable lease agreements, the lessees on PREIT’s land pay the upper of the lease phrases (the baseline quantity) or a share of their revenue, whichever is greater. Since traders haven’t any perception into the revenue of the lessees or into the specifics of those agreements, that PREIT would obtain variable lease revenue this yr was not public data. What might have pushed speculators to bid PREIT up earlier than the dividend was introduced on April 14? Simply grasp merchants, I assume.
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