AREIT profit up 27% in Q1

MANILA, Philippines —  AREIT Inc., the pioneering real estate investment trust of the Ayala Group, grew its first quarter net income to P1.01 billion, up by 27 percent year-on-year.

Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 24 percent to P1.04 billion while revenues grew 25 percent to P1.48 billion.

The rosy first quarter performance was driven by stable operations and the acquiition of Cebu properties in 2022.

AREIT recorded an average occupancy of 97 percent and benefited from strong collection performance, reflecting the high- quality tenancy in its properties.

The company already secured the approval of its stockholders on its third property-for-share swap with the sponsor, Ayala Land Inc.

The transaction will almost triple the company’s assets under management (AUM) to P87 billion and boost its gross leasable area to 863,000 meters or more than five fold since its initial public offering in 2020, making AREIT one of the largest and the most diversified commercial REITs in the Philippines.

The transaction involves flagship offices and malls with an aggregate value of P22.5 billion in exchange for 607.5 million AREIT primary common shares, as validated by a third-party fairness opinion.

These assets are mainly located in the Makati CBD, specifically, the newest One Ayala Avenue East and West BPO Towers at the corner of Ayala Avenue and EDSA, as well as the Glorietta 1 and 2 mall wing and BPO buildings at Ayala Center.

Aside from these, the MarQuee mall in Angeles, Pampanga, located close to the Angeles exit of the North Luzon Expressway (NLEX), will also be added to AREIT’s portfolio.

AREIT declared full-year dividends from its 2022 income totaled P1.98 per share, 12 percent higher than P1.77 in 2021.

As of Dec. 31, 2021, AREIT’s property portfolio consists of 11 Grade A office buildings located in Makati City, Muntinlupa City, Negros Occidental, and Cebu, one commercial development in Pasig City, and industrial lots in Laguna Technopark.