Apollo Global capital currently has a bullish price action due to its recent disclosure of receiving its Follow on Offering Pre-approval. Price action is currently moving with more than 10% gain from it’s friday closing.
According to its PSE edge information;
Apollo Global Capital, Inc. (the “Company”) received today, 6 August 2021, the pre-effective letter issued by the Securities and Exchange Commission (“SEC”), favorably considering the Company’s Registration Statement in relation to the Company’s proposed follow-on offer of Twelve Billion Three Hundred Fifty Million (12,350,000,000) common shares at an offer price ranging from Php0.07 to Php0.08 per share (the “Offer”), subject to compliance by the Company with the conditions prescribed in the pre-effective letter.
The pre-effective letter is without prejudice to the prerogative of the SEC to act later against the Company, if warranted, to ensure full compliance with the provisions of the Securities Regulation Code, its Implementing Rules and Regulations, as well as P.D. 129, as amended, and the Omnibus Rules and Regulations for Investment House and Universal Bank Registered as Underwriters of Securities
The PSE market is set to close also in the Green position as the second quarter GDP of the Philippines have been recently posted to have a positive comeback as compared to its last year performance
According to AREIT disclosure on PSE edge, the company recorded modest gains on the first half of the year. This is a a very good earnings despite the pandemic and occasional lockdowns that we are experiencing.
REIT companies offer the benefits of providing dividends from Rental income of its property portfolio.
Last Friday closing the price of AREIT closed at 36.25pesos per share.
It stated;
“Ayala Land’s pioneering Real Estate Investment Trust (REIT) in the Philippines, AREIT Inc. (AREIT), posted revenues of P1.36 billion and earnings before interest, taxes, depreciation and amortization (EBITDA) of P1.05 billion for the first half of 2021, a 49% and 39% growth, respectively, versus last year. This is a result of the positive contribution of new properties, The 30th in Pasig, and land parcels in Laguna Technopark it acquired last January 2021, Teleperformance Cebu in October 2020, and rental escalations of existing leases. It sustained a high occupancy rate of 99%”
It has changed its accounting method from Cost Method to Fair Value Method
“To reflect the market value of its properties and align financial reporting practices with that of global REITs, AREIT secured the approval of the Bureau of Internal Revenue to change the accounting method it uses in valuing investment properties, from cost method to fair value method. The company received the approval last June which takes effect retroactively from January 1, 2021. Under the fair value method, it reported net income of P1.34 billion for the first half of 2021, 31% higher than last year.
Factoring out unrealized gains in the fair value recognition of its properties, AREIT’s net income reached P1.01 billion, 55% higher than last year, reflecting the company’s growth in earnings from its new properties and the stability of its existing buildings.”
Just recently AREIT and ALI and its subsidiaries, Westview Commercial Ventures Corp. and Glensworth Development, Inc., entered in a P15.5 billion property-for-share deal in June.
Disclosure states;
“Last June, AREIT and Ayala Land, Inc. (ALI) and its subsidiaries, Westview Commercial Ventures Corp. (WCVC) and Glensworth Development, Inc. (GDI), executed the Deed of Exchange on the property-for-share swap transaction. The share swap transaction is expected to be completed within the second half of the year. AREIT currently has six properties with a total gross leasable area (GLA) of 344 thousand sqm and assets under management (AUM) valued at P37 billion.
Its GLA is slated to grow to 549 thousand sqm and AUM to P52 billion with the said transaction of P15.5
Courtesy AREIT website
As of today, the stock price have significantly risen from its IPO price by more than 33%
There is also net foreign accumulation for the past few days
