AREIT income rises in 2024

February 23, 2025 | 12:00am

MANILA, Philippines — AREIT Inc., the listed real estate investment trust of the Ayala Group, saw its earnings rise by nearly half last year, driven by strong contributions of its asset acquisitions.

AREIT reported a net income of P7.4 billion in 2024, up by 49 percent year-on-year, with revenues rising by 44 percent to P10.3 billion.

The company attributed its robust performance for the year to the contributions of its 2024 acquisitions namely, Ayala Triangle Gardens Tower 2 office building, Greenbelt 3 and 5 mall, Holiday Inn Hotel and Suites Makati, Seda Ayala Center Cebu and industrial land in Zambales as well as the full year contributions of 2023 acquired assets.

AREIT is set to boost its portfolio further with the acquisition of more commercial properties in Cebu, Davao and Cagayan de Oro from its sponsor Ayala Land Inc. (ALI) and its subsidiaries.

AREIT’s board has approved a property-for-share swap transaction valued at P21 billion with ALI and subsidiaries Accendo Commercial Corp., Cagayan de Oro Gateway Corp. and Central Bloc Hotel Ventures Inc.

The transaction involves the subscription of ALI and the subsidiaries of 505.89 million primary common shares, in exchange for the eight commercial assets.

The assets include Central Bloc One, Central Bloc Two, Ayala Malls Central Bloc, Seda Hotel Central Bloc, Ayala Malls Abreeza, Abreeza Corporate Center, Ayala Malls Centrio and Centrio Corporate Center.

The transaction will be submitted for approval of AREIT shareholders at its annual stockholder’s meeting on April 24.

AREIT said that the planned infusions would bring its assets under management (AUM) to P138 billion.

Totaling 306,000 square meters of building gross leasable area, the new assets will bring the company’s total GLA to 4.2 million square meters.

AREIT president and CEO Jose Eduardo Quimpo II said that the acquisition would be accretive to shareholders of the company in line with its commitment of delivering returns and long-term value.

“The acquisition is in line with our growth target of P15 billion to P20 billion in AUM per year. This will further diversify the portfolio and deepen AREIT’s presence in the fast-growing regional cities in Visayas and Mindanao,” Quimpo said.

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