VistaREIT, Inc., the real estate investment trust of the Villar group, has pegged its initial public offering price at P1.75 per share for a total offering size of P4.8 billion.
In a disclosure to the Philippine Stock Exchange, the firm said it has decided to offer up to 2.75 billion secondary common shares consisting of 2.5 billion firm shares with an overallotment option of up to 250 million shares.
In addition, the firm informed the PSE that, “VistaREIT, Inc. is still awaiting feedback from the Securities and Exchange Commission on any further disclosures required to be made with respect to the revised offer size.”
VistaREIT earlier planned to offer up to 3.33 billion firm shares and an over-allotment option up to 333.75 million shares at a price of up to P2.50 per share.
The PSE has earlier approved the IPO to be conducted from May 30 to June 3, 2022. The company is expected to list its shares on June 15, 2022 under the trading symbol VREIT.
In VREIT’s IPO prospectus, the firm projects a dividend yield of 825 percent this year and 8.99 percent next year for a payout of 14.4 centavos in 2022 and 15.7 centavos in 2023.
A stock analyst noted that this is the highest-ever committed dividend yield upon listing by a local REIT.
“We are pleased with the steady increase in the number of REIT listings in the PSE,” PSE President and CEO Ramon S. Monzon said.
He added that, “The entry of VistaREIT will further boost the size of the REIT market and broaden the portfolio of mall and office building assets in the local REIT space.” The IPO shares, which are currently owned by the sponsors, will be listed and traded on the Main Board of the PSE.
The sponsors will receive the entire proceeds of the offer, which shall be reinvested in the Philippines, pursuant to the Revised Implementing Rules and Regulations of the Real Estate Investment Trust (REIT) Act of 2009.
VistaREIT’s portfolio currently includes 10 community malls and two office buildings with a gross leasable area of 256,403.95 square meters.
The company’s malls are located in Metro Manila, Cavite, Rizal, Bulacan, Pampanga, and Cebu, while its office buildings are in Taguig and Bacoor, Cavite.