AREIT, Inc. Income Up 46% to P5.0 Billion in 9M24; Declares Dividends at P0.58 Per Share

Ayala Group's REIT arm, AREIT, Inc. (AREIT) posted total revenues of P7.1 billion and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of P5.1 billion, 42% and 45% higher year-on-year, respectively. Net income registered at P5.0 billion, 46% higher year-on-year, excluding the net fair value change in investment properties.

Last September 26, 2024, AREIT obtained the Securities and Exchange Commission’s (SEC) approval on its property-for-share swap with Ayala Land, Inc. (ALI) and its subsidiaries, Greenhaven Property Ventures, Inc. and Cebu Insular Hotel Co., Inc. for Ayala Triangle Gardens Tower 2 office building, Greenbelt 3 & 5 mall, Holiday Inn Hotel & Suites Makati, and Seda Hotel in Ayala Center Cebu, with a value of P21.8 billion for 642,149,974 AREIT shares. The approval also involved the 276-hectare industrial land parcel located in Zambales, owned by Buendia Christiana Holdings Corp., a wholly owned subsidiary of ACEN Corporation, with a value of P6.8 billion for 199,109,438 AREIT shares. The recognition of these assets accrued beginning July 1, 2024.

As of September 30, 2024, AREIT's properties recorded a stable 99% overall occupancy, and weighted average lease expiry for offices of 4.0 years, up from 3.7 years from the previous quarter.

AREIT’s performance in the first nine months was boosted by the contributions of its 2024 and 2023 acquisitions coupled with stable operations. The new assets also increased AREIT’s building gross leasable area (GLA) to 1.0 million square meters and land GLA to 2.9 million square meters. Moreover, AREIT’s Assets under Management (AUM) stands at P117.6 billion, nearly quadruple since its IPO listing in 2020, with a mixed portfolio of office, malls, hotels, and industrial land.

“We are focused on delivering long-term value and sustainable returns for our stakeholders. We look to execute on our plan, composed of growing our portfolio with quality assets, diversifying our sources of income, and optimizing returns of our assets,” said AREIT President and CEO, Mr. Jose Eduardo A. Quimpo II. During its Board of Directors meeting today, AREIT declared cash dividends of P0.58 per outstanding common share for the third quarter of 2024. The dividends are payable on December 13, 2024, to shareholders on record as of November 27, 2024. The P0.58 per share is 3.6% higher than the previous quarter’s dividends of P0.56 per share. This latest quarterly dividend brings AREIT’s 9M 2024 dividend per share to P1.70, a 6.3% increase from P1.60 per share for the same period in 2023.
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AREIT was recognized for its corporate governance practices, receiving a Three Golden Arrow award based on its 2023 ASEAN Corporate Governance Scorecard at the Institute of Corporate Directors’ 2024 Golden Arrow Awards.