AREIT Inc., the real estate investment trust sponsored by property giant Ayala Land Inc. (ALI), reported a 49 percent year-on-year jump in net income to ₱7.4 billion in 2024, excluding net fair value change in investment properties.
In a disclosure to the Philippine Stock Exchange, the firm said it posted total revenues of ₱10.3 billion and earnings before interest, taxes, depreciation, and amortization (EBITDA) of ₱7.5 billion, 44 percent and 49 percent higher year-on-year, respectively.
AREIT said its performance for the year was boosted by contributions of its 2024 acquisitions, namely: Ayala Triangle Gardens Tower 2 office building, Greenbelt 3 and 5 malls, Holiday Inn Hotel & Suites Makati, Seda Ayala Center Cebu, and industrial land in Zambales, and the full-year contributions of assets acquired in 2023.
The firm also declared cash dividends of ₱0.58 per outstanding common share for the fourth quarter of 2024. The dividends are payable on March 21, 2025, to shareholders on record as of March 5, 2025.
This brings AREIT’s full-year 2024 dividend per share to ₱2.28, a six percent increase from 2023's ₱2.15 per share.
In addition, AREIT’s board of directors approved the acquisition of commercial properties located in Cebu, Davao, and Cagayan de Oro from its sponsor ALI and its subsidiaries.
It approved a property-for-share swap transaction with ALI and subsidiaries Accendo Commercial Corp. (Accendo), Cagayan de Oro Gateway Corp. (CDOGC), and Central Bloc Hotel Ventures Inc. (CBHVI), involving the subscription of 505.89 million primary AREIT common shares by ALI and its subsidiaries.
This will be in exchange for Central Bloc One office, Central Bloc Two office, Ayala Malls Central Bloc, Seda Hotel Central Bloc, Ayala Malls Abreeza, Abreeza Corporate Center office, Ayala Malls Centrio, and Centrio Corporate Center office.
The share-for-property swap will have a transaction value of ₱21 billion at an exchange price of ₱41.50 per share, as validated by a third-party fairness opinion.
The transaction shall be submitted for approval of AREIT's shareholders at their annual stockholders’ meeting on April 24, 2025, and pertinent regulatory bodies thereafter.
The planned infusions of ALI, Accendo, CDOGC, and CBHVI will bring AREIT’s assets under management (AUM) to ₱138 billion. The new assets totaling 306,000 square meters (sqm) of building gross leasable area (GLA) will bring its total GLA to 4.2 million sqm, composed of 1.3 million sqm building GLA and 2.9 million sqm industrial land.
“The acquisition is in line with our growth target of ₱15-20 billion in AUM per year. This will further diversify the portfolio and deepen AREIT’s presence in the fast-growing regional cities in Visayas and Mindanao,” said AREIT President and CEO Jose Eduardo A. Quimpo II.
He added that, “the acquisition will be accretive to shareholders of AREIT in line with our commitment of delivering returns and long-term value.”