I’ve been writing about the planned retail REITs from SM Prime and Cosco Capital but forgot to check on the existing one! It has been a little over a year since VREIT’s IPO so we’ll have a look at its performance. Its properties include 10 community malls with a couple of office buildings as seen below:

Here’s a video of VREIT’s portfolio:

GLA is at 256,000 sqm with an occupancy rate of 97%. They have also managed to increase the quarterly dividends:

Among the REITs, VREIT actually has the highest dividend yield at around 9%. This is not due to a drop in its stock price, which has remained relatively stable over the past year.

There are no specific plans for more infusions from sponsor VistaLand, not that they are short of income generating properties as seen below:

VREIT has the potential to grow its GLA 5x, just with VistaLand’s existing properties and not counting those in the pipeline given their massive footprint in the country. In its recent three-year investment strategy, VREIT aims to double its GLA to 512,000 sqm by 2025 and fund these acquisitions using a combination of debt and equity.

The major risk here is the concentration of retail tenants within the Villar Group – AllDay, AllHome, Coffee Project, etc. But given that these are strong brands with a captive market in established residential communities, chances are good that they will be able to pay rent. Moreover, AllDay and AllHome are publicly listed companies that reported net incomes of P301 million and P934 million respectively in 2022.