AREIT, Inc., the real estate investment trust sponsored by real estate giant Ayala Land Inc., reported a 49 percent year-on-year jump in net income to ₱7.4 billion, excluding net fair value change in investment properties.
In a disclosure to the Philippine Stock Exchange, the firm said it posted total revenues of ₱10.3 billion and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of ₱7.5 billion, 44 percent and 49 percent higher year-on-year, respectively.
AREIT said its performance for the year was boosted by contributions of its 2024 acquisitions namely, Ayala Triangle Gardens Tower 2 office building, Greenbelt 3 and 5 mall, Holiday Inn Hotel & Suites Makati, Seda Ayala Center Cebu, and industrial land in Zambales, and the full-year contributions of 2023 acquired assets.
The firm also declared cash dividends of ₱0.58 per outstanding common share for the fourth quarter of 2024. The dividends are payable on March 21, 2025 to shareholders on record as of March 5, 2025.
This brings AREIT’s full year 2024 dividend per share to ₱2.28, a six percent increase from ₱2.15 per share in 2023.
In addition, AREIT’s Board of Directors approved the acquisition of commercial properties located in Cebu, Davao, and Cagayan de Oro from its sponsor Ayala Land, Inc. (ALI) and its subsidiaries.
It approved a property-for-share swap transaction with ALI and subsidiaries, Accendo Commercial Corp. (Accendo), Cagayan de Oro Gateway Corp. (CDOGC), and Central Bloc Hotel Ventures, Inc. (CBHVI) involving subscription of ALI and the subsidiaries of 505.890 million primary AREIT common shares.
This will be in exchange for Central Bloc One (Office), Central Bloc Two (Office), Ayala Malls Central Bloc, Seda Hotel Central Bloc, Ayala Malls Abreeza, Abreeza Corporate Center (Office), Ayala Malls Centrio, and Centrio Corporate Center (Office).
The share-for-property swap will have a transaction value of ₱21.0 billion at an exchange price of ₱41.50 per share, as validated by a third-party fairness opinion.
The transaction shall be submitted for approval of AREIT shareholders at their Annual Stockholder’s Meeting on April 24, 2025, and pertinent regulatory bodies thereafter.
The planned infusions of ALI, Accendo, CDOGC, and CBHVI will bring AREIT’s Assets Under Management (AUM) to ₱138 billion. The new assets totaling 306,000 square meters of building GLA will bring its total gross leasable area to 4.2 million sqm, composed of 1.3 million sqm building GLA and 2.9 million sqm industrial land.
“The acquisition is in line with our growth target of ₱15-20 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,” said AREIT President and CEO Jose Eduardo A. Quimpo II.
He added that, “The acquisition will be accretive to shareholders of AREIT in line with our commitment of delivering returns and long-term value.
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