AREIT Inc., the real estate investment trust of the Ayala Group, posted a 44 percent year-on-year increase in first-half net income to P2.9 billion, excluding the net fair value change in investment properties.
The listed REIT said total revenue rose 43 percent to P4.2 billion while earnings before interest, taxes, depreciation, and amortization soared 45 percent to P3.0 billion as occupancy rate at its various buildings remained strong at 96 percent, surpassing the industry average.
AREIT said its strong first half results was fueled by strategic acquisitions that included One Ayala Avenue East and West Office Towers, Glorietta 1 and 2 Mall, Office buildings at Ayala Center Makati, MarQuee Mall in Pampanga and the Seda Hotel in Lio, El Nido
The acquisitions lifted the value of assets under management to P88.6 billion, encompassing a diversified portfolio of offices, malls, hotels, and industrial land.
“AREIT is poised to quadruple its AUM this year from the time of our listing in 2020—a significant milestone as we mark our fourth anniversary since listing amid the pandemic,” said AREIT president and chief executive officer Carol T. Mills. “Our revenue surged by 467 percent, from P907 million to P4.2 billion, driven by a solid portfolio and the acquisition of prime assets,” she added.
She said dividends have also doubled to P0.56 from P0.28 per share while total shareholder return has reached the highest among Philippine REITs at 74 percent since the IPO.
Looking ahead, AREIT’s AUM is expected to grow to P117 billion, pending regulatory approval of an asset-for-share swap with its sponsor, Ayala Land Inc. and its subsidiaries.
This transaction involves P28.6 billion worth of prime assets, including the new Ayala Triangle Gardens Tower Two Office Building, Greenbelt 3 and 5, Holiday Inn in Ayala Center Makati, Seda Ayala Center Cebu, and a 276-hectare land in Zambales for solar power plant operations.
