AREIT Inc., the real estate investment trust of the Ayala Group, posted a 46 percent growth in nine months net income to P5.0 billion, driven by strong revenue generation across the listed company’s diverse portfolio of properties, as well as strategic acquisitions that bolstered its real estate assets.
Excluding the net fair value change in investment properties, earnings growth remains solid, reflecting the strength of AREIT’s core operations.
AREIT posted total revenue for the period surged 42 percent to P7.1 billion, while earnings before interest, taxes, depreciation, and amortization rose by 45 percent to P5.1 billion. The strong performance was largely attributed to contributions from recent acquisitions, including premium office buildings, malls, hotels, and industrial land. The company also saw continued stability in its operations, with a high occupancy rate across its properties.
AREIT reported exceptional earnings from the property-for-share swap transaction approved by the Securities and Exchange Commission in September 2024. The swap involved the transfer of prime assets from Ayala Land, Inc. and its subsidiaries, including the Ayala Triangle Gardens Tower 2 office building, Greenbelt 3 & 5 malls, Holiday Inn Hotel & Suites Makati, and Seda Hotel in Ayala Center Cebu. These high-value properties, totaling P21.8 billion, were exchanged for 642,149,974 AREIT shares, adding substantial value to AREIT’s portfolio.
The swap included the acquisition of a 276-hectare industrial land parcel in Zambales, valued at P6.8 billion. These newly acquired assets significantly boosted AREIT’s gross leasable area to 1.0 million square meters for office spaces and 2.9 million square meters for land, positioning the company for continued growth. The recognition of these assets, effective July 1, further strengthened AREIT’s financial position.
As of September 30, AREIT’s portfolio maintained a strong 99 percent occupancy rate, underscoring the stability and appeal of its real estate assets. The company also saw a notable increase in the weighted average lease expiry for office spaces, which grew to 4.0 years, up from 3.7 years in the previous quarter. This longer lease duration indicates the reliability of cash flows from its office properties, which remain a core contributor to AREIT’s overall performance.
AREIT’s continued expansion and stable operations have helped the company increase its assets under management to P117.6 billion, a nearly fourfold increase since its IPO in 2020.
