VistaREIT Inc., the real estate investment trust of Vista Land & Lifescapes Inc., has worked out a three-year investment strategy to secure income growth and provide a competitive investment return to shareholders that includes doubling the gross floor area of its property portfolio by the end of 2026.
Listed on the Philippine Stock Exchange under the trading symbol VREIT, the company also plans to diversify its portfolio by investing in other Vista Land commercial real estate properties in the group’s integrated developments or in key urban areas, with high occupancy rates and good tenant quality; and achieving at least a 10 percent annual total shareholder return through organic growth and new acquisitions.
VREIT said new acquisitions will primarily focus on Vista Land assets but third-party acquisitions may be considered if those deals meet investment criteria.
The company is also looking to fund future acquisitions through a combination of debt and equity. Currently, VREIT has a gearing ratio at zero of deposited value which provides a significant room to borrow up to the 35 percent leverage limit to fund future acquisitions that will enhance shareholder returns as the company target to double its asset portfolio.
At the end of September, VREIT has assets portfolio with an average occupancy rate of 97 percent, earned gross revenue of P14.4 billion including gains on fair value changes in investment properties of P12.33 billion, and incurred total costs and expenses of P504.8 million. The gross floor area of 12 properties stood at 256,404 square meters.
The company already distributed around 97 percent or P891 million of its P922.5 million distributable income to its shareholders in the first nine months of 2023.
Annualized return since VREIT’s initial public offering is at 22.74 percent with dividend yield of 9.05 percent. Even so, shares of VREIT is trading below its listing price of P1.75. It closed at P1.70 on Dec. 18.
