AREIT 2023 profit soars 43%
‘The rosy 2023 numbers were primarily driven up by its acquisition of One Ayala Avenue East and West Towers at the corner of Ayala Avenue and EDSA, Glorietta 1 and 2 Mall and BPO buildings at Ayala Center, and MarQuee Mall in Angeles, Pampanga’
A stable operation and consistent asset infusions has helped Ayala-sponsored AREIT Inc., the country’s real estate investment trust pioneer, achieve doubledigit profit growth in 2023.
In a stock report on Tuesday, AREIT disclosed its net income last year stood at P4.93 billion, 43 percent higher yearon-year. The amount, however, notably did not account for the net fair value change in investment properties.
AREIT’s total revenues reached P7.14 billion, and Earnings Before Interest, Taxes, Depreciation and Amortization, or EBITDA, clocked in at P5.04 billion — 41 percent and 39 percent higher year-on-year, respectively.
As of the end of December 2023, REIT’s properties recorded an industry-leading 97 percent average occupancy.
Growth initiatives
“Our growth initiatives will benefit AREIT — profoundly enlarging the portfolio further, diversifying the assets, reducing concentration risk, and most importantly, providing our shareholder’s dividend accretion,” AREIT president and CEO Carol Mills said.
“This is a testament that AREIT, led by its sponsor Ayala Land, is an integral vehicle for capital recycling and growth, and we remain steadfast in attaining our vision of being the leading and most diversified Philippine REIT,” she added.
AREIT pointed out in its report that the rosy 2023 numbers were primarily driven up by its acquisition of One Ayala Avenue East and West Towers at the corner of Ayala Avenue and EDSA, Glorietta 1 and 2 Mall and BPO buildings at Ayala Center, and MarQuee Mall in Angeles, Pampanga.
These asset infusions resulted in a 4 percent increase in dividends per share to 55 centavos in the third quarter from 53 centavos in the second quarter of the year.
For the fourth quarter, the AREIT Board of Directors approved the disbursement of 55 centavos per outstanding common share dividends. The dividends are payable on 20 March to shareholders on record as of 4 March.
According to AREIT, the latest quarterly dividend brought annual dividend-per-share to P2.15 for 2023, an 8.6 percent increase from P1.98 per share in 2022 and nearly double the company’s first quarterly payout of 28 centavos per share when it listed in 2020.
Goat and cattle raisers are encouraged to upgrade to dairy breeds for higher income. The National Dairy Authority said dairy should be a main source of livelihood for farmers and not just as a source of extra income.