Ayala Land subsidiary AREIT Inc., the first Philippine real estate trust, reported a 45 percent jump in net income to P1.47 billion in the first quarter of 2024 from the same period last year, excluding the net fair value change in investment properties.
In a disclosure to the Philippine Stock Exchange, the firm said its total revenues amounted to P2.11 billion while Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) reached P1.51 billion, 43 percent and 45 percent higher year-on-year, respectively.
AREIT said its overall occupancy remained high at 96 percent, better than industry the industry average.
The firm said its first quarter income was boosted by acquisitions which included the new One Ayala Avenue East and West Office Towers, Glorietta 1 and 2 Mall and Office buildings at Ayala Center Makati, MarQuee Mall in Pampanga and the Seda Hotel in Lio, El Nido.
AREIT’s Assets under Management (AUM) stands at P88.6 billion comprising of a diversified mix of offices, malls, hotels, and industrial land.
Last 19 March 2024, the company executed a Deed of Exchange with Ayala Land, Inc. (ALI) and its subsidiaries, Greenhaven Property Ventures, Inc. and Cebu Insular Hotel Co., Inc., and Buendia Christiana Holdings Corp. (BCHC), involving the issuance of 841.26 million primary common shares at P34 per share in exchange for assets worth P28.6 billion.
The assets include Ayala Triangle Gardens Tower Two, Greenbelt 3 and 5, Holiday Inn in Ayala Center Makati and Seda Ayala Center Cebu, as well as the 276-hectare land in Zambales for solar power plant operations.
This transaction, once approved by the pertinent regulatory bodies, is expected to bring AREIT’s AUM to P117 billion, quadruple the size since its initial public offering.
Meanwhile, AREIT’s Board of Directors approved the declaration of cash dividends of P0.56 per outstanding common share for the first quarter of 2024 – the highest since its IPO in 2020.
Dividends have doubled since AREIT’s inception on account of strong performance of existing properties and constant addition of new and larger assets. Dividends will be payable on June 13, 2024 to shareholders on record as of May 28, 2024.