MANILA, Philippines — Property giant Ayala Land Inc. (ALI) is preparing to ramp up asset infusions into its the real estate investment trust (REIT) starting next year.
ALI chief finance officer Jed Quimpo said 2027 would be “an exciting year” for the company in terms of infusions into AREIT.
“As part of our REIT plan, we look to infuse anywhere from P15 billion to P20 billion on a regular basis. Our assets are getting to the level where we actually see ourselves accelerating the pace of infusion,” he said.
Quimpo said ALI got the Securities and Exchange Commission to approve P20 billion worth of infusions.
“That’s already in AREIT and following the infusion, we were actually, as Ayala Land, able to monetize over P6 billion. That P6 billion we’ve actually earmarked for our expansions on the leasing segment. So what we’ve been able to monetize, we reinvested in leasing,” he said.
Last August, Quimpo said ALI’s board also approved the infusion of another P20 billion worth of malls and hotels that it will put in AREIT.
Quimpo said ALI is expecting and hoping that it would get regulatory approval for the infusion this fourth quarter, which will then pave the way for the next deals.
The transaction broadens AREIT’s portfolio beyond its established office base, adding four malls and two hotels across key commercial locations in Metro Manila and the Visayas, while strengthening its exposure to established assets within ALI’s portfolio.
The infusions will raise AREIT’s assets under management to P177 billion from P159 billion.
In its recent Asia-Pacific Equity Research, J.P. Morgan said AREIT offers a better listed property representation for Ayala Corp. than ALI.
J.P. Morgan said AREIT has a potential to become a listed stand-in for the group’s property arm amid higher ascribed valuation for leasing assets and value unlock potential for remaining leasing assets not yet infused.
“We believe Ayala could theoretically delist ALI and make AREIT the listed entity of its property arm,” it said.
Sought for comment on J.P. Morgan’s recommendation about taking ALI private, ALI president and CEO Anna Ma. Margarita Bautista-Dy said that the focus of the management is really to create value for long term shareholders of the company.
“So we really are focused on strengthening the business, and we’re doing that by building our recurring income, being very focused on our residential business, keeping a close eye on our balance sheet and making sure it continues to strengthen, and to be more active in our portfolio management,” Bautista-Dy said.
“These are the things that I think, as management, we are really focused on, so that we can continue to create long-term value for our shareholders,” she added.