Asset acquisitions boost AREIT profits by 43%

AREIT, Inc. (AREIT), the real estate trust of property giant Ayala Land Inc., reported a 43 percent jump in net income last year to ₱4.93 billion, boosted by the acquisition of more properties for lease.

In a disclosure to the Philippine Stock Exchange, the firm said the net income excludes the net fair value change in investment properties. AREIT’S properties recorded a 97 percent average occupancy at the end of the year, higher than the industry.

Total revenues rose 41 percent to ₱7.14 billion while Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew 39 percent to ₱5.04 billion on account of stable operations and consistent asset infusions.

“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,” said AREIT President and CEO Carol T. Mills.

She noted that, “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.”

AREIT said its 2023 performance was boosted by the 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.

This resulted in a 4 percent increase in dividends per share to P0.55 in the third quarter from ₱0.53 in the second quarter of the year.

During its Board of Directors meeting today, AREIT declared cash dividends of P0.55 per outstanding common share for the fourth quarter of 2023. The dividends are payable on March 20, 2024, to shareholders on record as of March 4, 2024.

This latest quarterly dividend brings AREIT’S annual dividend-per-share to ₱2.15 for 2023, an 8.6 percent increase from P1.98 per share in 2022 nearly double the company’s first quarterly payout of P0.28 per share when it listed in 2020.