AREIT Inc. (AREIT), the Ayala Group’s real estate investment trust, reported a 46 percent jump in net income to P5 billion, excluding the net fair value change in investment properties, for the first nine months of 2024.
In a disclosure to the Philippine Stock Exchange (PSE), the firm said it posted total revenues of P7.1 billion and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of P5.1 billion, 42 percent and 45 percent higher year-on-year, respectively.
Last Sept. 26, 2024, AREIT obtained the Securities and Exchange Commission’s (SEC) approval on its property-for-share swap with Ayala Land Inc. (ALI) and its subsidiaries, Greenhaven Property Ventures Inc. and Cebu Insular Hotel Co. Inc. for Ayala Triangle Gardens Tower 2 office building, Greenbelt 3 & 5 mall, Holiday Inn Hotel & Suites Makati, and Seda Hotel in Ayala Center Cebu, with a value of P21.8 billion for 642.15 million AREIT shares.
The approval also involved the 276-hectare industrial land parcel located in Zambales, owned by Buendia Christiana Holdings Corp., a wholly owned subsidiary of ACEN Corporation, with a value of P6.8 billion for 199.11 million AREIT shares. The recognition of these assets accrued beginning July 1, 2024.
As of Sept. 30, 2024, AREIT's properties recorded a stable 99 percent overall occupancy, and weighted average lease expiry for offices of four years, up from 3.7 years from the previous quarter.
AREIT’s performance in the first nine months was boosted by the contributions of its 2024 and 2023 acquisitions coupled with stable operations.
The new assets also increased AREIT’s building gross leasable area (GLA) to one million square meters and land GLA to 2.9 million square meters.
Moreover, AREIT’s Assets under Management (AUM) stands at P117.6 billion, nearly quadruple since its IPO listing in 2020, with a mixed portfolio of office, malls, hotels, and industrial land.
“We are focused on delivering long-term value and sustainable returns for our stakeholders. We look to execute on our plan, composed of growing our portfolio with quality assets, diversifying our sources of income, and optimizing returns of our assets,” said AREIT President and CEO Jose Eduardo A. Quimpo II.
During its Board of Directors meeting today, AREIT declared cash dividends of P0.58 per outstanding common share for the third quarter of 2024. The dividends are payable on Dec. 13, 2024, to shareholders on record as of Nov. 27, 2024.
The P0.58 per share is 3.6 percent higher than the previous quarter’s dividends of P0.56 per share. This latest quarterly dividend brings AREIT’s nine-month 2024 dividend per share to P1.70, a 6.3 percent increase from P1.60 per share for the same period in 2023.
AREIT was recognized for its corporate governance practices, receiving a Three Golden Arrow award based on its 2023 ASEAN Corporate Governance Scorecard at the Institute of Corporate Directors’ 2024 Golden Arrow Awards.