DDMPR Q4 dividend fell 9.9% q/q

DDMP [DDMPR 1.17, down 0.8%; 111% avgVol] [link] declared a Q4/23 dividend of P0.023137/share, payable on May 31 to shareholders of record as of May 7. The dividend has an annualized yield of 7.91% based on the previous closing price, which is significantly smaller than DDMPR’s pre-dividend annualized yield of 8.78%. The total amount of the dividend is P412 million, which is 163% of the P253 million in distributable income that DDMPR reported for the quarter. Relative to DDMPR’s IPO price, the dividend increased DDMPR’s total stock and dividend return to -33.38%, up from its pre-dividend total return of -34.41%. The Q4 dividend is 9.9% smaller than DDMPR’s Q3 dividend. Cumulatively, DDMPR will distribute 99.5% of its FY23 distributable income through its four FY23 dividends.

MB bottom-line: DDMPR is the forgotten son of the Injap Sia empire. Unlike so many other REITs that have hit the sector since AREIT [AREIT 32.70, down 0.8%; 210% avgVol] started it all in August 2020, DDMPR has not taken any public steps to increase its dividend by downloading mature projects from its parent. Even more alarming is that, unlike many of the other REITs that entered the market as commercial-only lessors, DDMPR hasn’t taken any public steps to diversify its holdings to protect its shareholders from the deterioration of the commercial property sector or to insulate its shareholders from the potential damage that a full POGO ban might cause to a commercial property sector that is already so vulnerable. Any shareholders that are still holding on here are probably desperate for some guidance. 

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