One month after being listed, at 4.00 euros each, the shares haven't recorded any variation.
The real estate investment trust (REIT) Ores Portugal, which results from a partnership created by Bankinter and Sonae Sierra in November last year, went public on June 24, but the first sessions were blank. One month after being listed, at 4.00 euros each, the shares have not yet recorded any variation.
Olimpo Real Estate Portugal (or Ores Portugal) was admitted to the Euronext Access market, where it is supposed to trade by call (i.e. twice a day, at 10.30 am and 3.30 pm). At the initial price of four euros for each of the 12.55 million shares, the company has a market capitalization of 50.2 million euros. The company is currently 12% owned by Bankinter and 5.14% by Sonae Sierra, with 83% of the capital being dispersed in the stock market.
“At the moment, ORES has only liquidity in its assets, so there are no potential capital gains or income. Given the market situation, ORES will only start investing in the coming months. Therefore, it is normal that a shareholder wants to keep, at this moment, its shares, in expectation of the profitability that these investments will produce”, explains Sonae Sierra’s official source to ECO.
The company has 50.05 million in assets but wants to strengthen its portfolio. Just days after it was created, it made a capital increase at four per euro for each share (whose nominal value is one euro) which generated an issue premium of 37.5 million euros. It is with this money that the company will invest in the first properties.
The investment strategy will focus on commercial real estate assets, and urban real estate, namely high street commercial spaces, supermarkets and hypermarkets, small retail parks, stand-alone units with solvent tenants and long-term contracts and offices. Of the profit achieved on these investments, REIT promises to distribute at least 90% of the profits for the year and at least 75% of the remaining profits in the form of dividends.
Due to these characteristics, the minority shareholder Sonae Sierra – which is responsible for the management of the real estate portfolio and the administrative management of the company, while Bankinter does the strategic management of the vehicle – underlines that the company is aimed at “investors with a medium-long term investment profile.”
The Lisbon Stock Exchange itself points out the same reasons. “Being a newly created company, still in the portfolio, there aren’t many reasons for its shares to be traded,” agrees Euronext Lisbon’s official source. “In other words, there are still no new developments: there is no purchase of assets or real estate business, which would motivate an increase in interest in the shares, an increase in their price, etc,” it adds.