Viva Energy REITs Income & Capital Raising
VIVA Energy REIT which focus on Petrol Station investments continues to deliver its strategic objectives with the results of 1H 19 and an equity raising demonstrating the capacity of the group.
Distributable Earnings per security growth guidance range of 3-3.75%2,3 from FY2018
14.02 CPS Distributable Earnings (up 4.5% from FY2017)
$2.5 billion portfolio 454 high-quality service stations and convenience properties with WACR 5.8%
VVR acquired 16 sites for $129 million at a WACR of 6.4%
WALE of 12.6 years
NTA $2.20 per security (up 3.8% from December 2017)
36.2% gearing ratio
VIVA also announced a $100m equity raising with the proceeds used to partly finance 8 acquisitions totalling approximately $47 million completed in 2H FY2018 (in addition to $8 million in committed expenditure) and to provide headroom for future growth. The equity raising was completed on the 22 February 2019 and attracted strong demand from existing securityholders and new investors. The Institutional Placement was offered at $2.32 per security, representing a 4.1% discount to the closing price of $2.42 on 20 February 2019 and a discount of 3.5% to the 5-day volume weighted average price of $2.40 to 20 February 2019.
VVR will continue to consider acquisition and development opportunities consistent with the following investment criteria:
1. Investment is high quality and strategically located;
2. Portfolio remains geographically diversified;
3. Investment has strong lease characteristics; and
4. Investment provides security holders with potential for capital growth over time.
VVR has identified a ~$130 million pipeline of potential acquisitions, $67 million of which are in advanced due diligence.
VVR Trading Chart vs ASX200 AREITs
Blue - VVR
Purple - ASX200 AREITs