AREIT Inc., the listed real estate investment trust of the Ayala Group, reported Tuesday a 43 percent increase in net income last year to P4.93 billion, excluding the net fair value change in its investment properties.
Total revenue for 2023 surged 41 percent to P7.14 billion while earnings before interest, taxes, depreciation and amortization was up 39 percent P5.04 billion, bolstered by its acquisition of One Ayala Avenue East and West Towers, Glorietta 1 and 2, the MarQuee Mall in Pampanga, and BPO buildings at Ayala Center.
AREIT said its various properties posted a 97 percent average occupancy at the end of the year, higher than the industry.
As a result of its financial performance, AREIT’s board declared P0.55 per share cash dividend in the fourth quarter for shareholders on record as of 4 March. The dividend will be paid on 20 March. In the second and third quarter, the cash dividend per share was P0.53 and P0.55, respectively.
The latest quarterly dividend brings AREIT’s annual dividend-per-share to P2.15 for 2023, an 8.6 percent increase from P1.98 per share in 2022, nearly double the company’s first quarterly payout of P0.28 per share when it listed in 2020.
On 12 February, AREIT stockholders ratified the property-for-share swap transaction with Ayala Land, Inc., and its subsidiaries, Greenhaven Property Ventures, Inc. and Cebu Insular Hotel Co. Inc., involving Ayala Triangle Tower Two, Greenbelt Mall 3 and 5, Holiday Inn and Suites Makati, and SEDA Ayala Center Cebu, with a value of P21.8 billion, and the 276-ha. industrial land located in Zambales owned by Buendia Christiana Holdings Corporation, a wholly-owned subsidiary of ACEN Corp. with a value of P6.8 billion.
AREIT also completed its cash acquisition of SEDA Lio in El Nido, Palawan, from Econorth Resort Ventures, Inc. for P1.19 billion in January.
The planned infusions will bring AREIT’s assets under management to P117 billion, four times the size from the IPO. AREIT aims to significantly expand and diversify its portfolio to capitalize on various growth opportunities across the real estate sector.
AREIT will execute a deed of exchange with ALI, its subsidiaries, and BCHC and apply for its approval with the Securities and Exchange Commission by March. New shares will be issued by AREIT, and the income from the assets shall accrue to AREIT upon approval.
“Our growth initiatives will benefit AREIT–profoundly enlarging the portfolio further, diversifying the assets, reducing concentration risk, and most importantly, providing our shareholder’s dividend accretion,” said Carol T. Mills, AREIT president and chief executive officer.
