PREIT finally declares Q3 divs

Premiere Island Power REIT [PREIT 1.60, up 1.9%] [link] declared a Q3/23 dividend of P0.0388/share, payable on March 12 to shareholders of record as of February 20. The dividend has an annualized yield of 9.7% based on the previous closing price, which is much larger than PREIT's pre-dividend annualized yield of 8.98%. The total amount of the dividend is P128 million, which is 109% of the P117 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 18.19%, up from its pre-dividend total return of 15.6%.

MB bottom-line: PREIT is the last of the PSE’s REITs to declare its Q3 dividend, and it completes the set with a bang. The Q3 dividend that’s been declared is 8% larger than what it distributed from its Q2 distributable income, but that’s not at all because it made more money. In fact, PREIT’s distributable income for Q3 (~P117 million) is actually 8% lower than the P127.4 million in distributable income it generated in Q2. PREIT’s Q3 dividend is 109% of the distributable income it made in Q3. While that’s not a huge deal when we’re thinking just of this Q3 declaration (the REIT Law applies to the full-year distribution, not the quarterly ones), it might become more worrying for PREIT holders over time if management needs to keep declaring more than 100% of its quarterly income to sustain its dividend. Shifting gears now to the entire PSE REIT roster, PREIT’s big declaration means that MREIT [MREIT 13.98 unch] was the only REIT to declare a smaller Q3 dividend relative to Q2, with all PSE REITs declaring an aggregate of P4.59 billion in dividend distributions for the quarter (up 0.9% from Q2).  

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