AREIT Q1 div up 3.57% y/y

AREIT [AREIT 39.85, down 0.4%] [link] declared a Q1 dividend of P0.58/share, payable on June 11 to shareholders of record as of May 27. This Q1/25 dividend is 3.57% larger than its Q1/24 dividend, but unchanged from what AREIT declared in the previous two quarters. From a distributable income perspective, the P2.0 billion AREIT reported for the period is up 39% y/y and up 9% q/q. This dividend will distribute 90.99% of that reported distributable income.

MB bottom-line: AREIT’s situation is a good case study for what I was talking about with the potential impact of RCR’s plan to expand its marketcap. With AREIT, the asset injection that it completed in July of 2024 increased its market cap by approximately 18% through the issuance of ~506 million AREIT shares to Ayala Land [ALI 22.50, down 1.5%]. After the infusion is made effective by the SEC’s approval, the share price of AREIT increased from the mid-P34 range to the mid-P38 range (~12% increase), and the per-share dividend increased by P0.02/share (~3.6% increase) to the current P0.58/share level. It’s not fair to attribute all of AREIT’s post-injection price appreciation to the injection itself, since there was a series of BSP rate cuts starting in August that put downward pressure on REIT yields (and therefore upward pressure on REIT prices), but it’s still useful to see how an 18% marketcap increase filters down into the REIT’s share price and dividend. 

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