DDMP drops 3-year plan with no hard acquisition targets
As part of the REIT Law, DDMP released its 3-year plan to help investors get a better understanding of the company’s current portfolio, and how it plans to maintain and grow its portfolio going forward. DDMPR reiterated its “investment plan” to invest in “income-generating real estate” that meet “a select set of criteria”, such as be located in Metro Manila or one of the “key provinces”, be Grade A commercial-grade, have stable occupancy, and have stable organic growth through lease escalation clauses.
DDMPR said that its investment objectives were to “grow and diversify DDMPR’s tenant mixes”, and to deliver “regular and stable” distributions to shareholders.
As for future acquisitions, DDMPR said that it will “continue to assess” any “attractive opportunities” that arise through its “connection” with DoubleDragon [DD 7.05 2.89%], third parties, or “throughout the wider market”.
MB BOTTOM-LINE
This document will do absolutely nothing to resolve the feelings of anger and impatience that long-time DDMPR bagholders have felt since the IPO back in March of last year.
While nearly every other of DDMPR”s REIT peers were either born with a stated acquisition strategy, or quickly developed one that identified specific targets, timelines, and strategies, DDMPR shareholders have heard nothing from DD or from Injap Sia about specific plans to grow the distributable income of this REIT.
It was one thing when DDMPR’s only competition was AREIT [AREIT 49.10 1.03%], since a company can hardly be faulted for not being as coordinated and transparent as an Ayala-led company, but since then we’ve seen REIT after REIT hit the market running with acquisition plans that go so far beyond what DDMPR has said and done in almost every way.
This is not a “grow or die” type of situation, but I think DDMPR needs to walk before we can even dare to talk about watching this REIT run. If there are no acquisitions planned, what’s the overall strategy?
The REIT plan contained a lot of talk about logistics and warehousing. Was that plan materially changed with the announcement of the CentralHub Industrial Centers REIT plan between Jollibee [JFC 215.00 0.65%] and DD?
Shareholders should be forgiven for their confusion, since neither DD nor DDMPR has been communicative about what the future holds for the shareholders that put good money into this REIT IPO, only to watch it sink and stay sunk.
By the end of this quarter, DDMPR will have celebrated its 1st birthday; will shareholders be happy to eat that cake?
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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