AREIT 2024 Income up 44% to P10.3B; AUM to Reach P138B in Value Post-Infusion of P21B in Commercial Properties

AREIT, Inc. (AREIT) posted total revenues of P10.3 billion and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of P7.5 billion, 44% and 49% higher year-on-year, respectively. Net income registered P7.4 billion, 49% higher year-on-year, excluding net fair value change in investment properties.

AREIT’s performance for the year was boosted by contributions of its 2024 acquisitions namely, Ayala Triangle Gardens Tower 2 office building, Greenbelt 3 & 5 mall, Holiday Inn Hotel & Suites Makati, Seda Ayala Center Cebu, and industrial land in Zambales, and the full-year contributions of 2023 acquired assets.

AREIT also declared cash dividends of P0.58 per outstanding common share for the fourth quarter of 2024. The dividends are payable on March 21, 2025 to shareholders on record as of March 5, 2025. This brings AREIT’s full year 2024 dividend per share to P2.28, a 6.0% increase from P2.15 per share in 2023.

In addition, AREIT’s Board of Directors approved the acquisition of commercial properties located in Cebu, Davao, and Cagayan de Oro from its sponsor Ayala Land, Inc. (ALI) and its subsidiaries. The Board approved a property-for-share swap transaction with ALI and subsidiaries, Accendo Commercial Corp. (Accendo), Cagayan de Oro Gateway Corp. (CDOGC), and Central Bloc Hotel Ventures, Inc. (CBHVI) involving subscription of ALI and the subsidiaries of 505,890,177 primary common shares, in exchange for the following assets: (1) Central Bloc One (Office), (2) Central Bloc Two (Office), (3) Ayala Malls Central Bloc, (4) Seda Hotel Central Bloc, (5) Ayala Malls Abreeza, (6) Abreeza Corporate Center (Office), (7) Ayala Malls Centrio, and (8) Centrio Corporate Center (Office), with a transaction value of P21.0 billion at an exchange price of P41.50 per share, as validated by a third-party fairness opinion. The transaction shall be submitted for approval of AREIT shareholders at their Annual Stockholder’s Meeting on April 24, 2025, and pertinent regulatory bodies thereafter.

The planned infusions of ALI, Accendo, CDOGC, and CBHVI will bring AREIT’s Assets Under Management (AUM) to P138 billion. The new assets totaling 306 thousand square meters of building GLA will bring its total gross leasable area to 4.2 million sqm, composed of 1.3 million sqm building GLA and 2.9 million sqm industrial land.

“The acquisition is in line with our growth target of P15-20 billion in AUM per year. This will further diversify the portfolio and deepen AREIT’s presence in the fast-growing regional cities in Visayas and Mindanao. The acquisition will be accretive to shareholders of AREIT in line with our commitment of delivering returns and long-term value.” said AREIT President and CEO Mr. Jose Eduardo A. Quimpo II.