Ayala's AREIT, Inc. Reported a Net Income of PHP 4.93 Billion in 2023, Up 43%, 4Q23 Dividends of PHP 0.55 Per Share

AREIT, Inc. (AREIT), the Ayala Group's REIT arm and the first Philippine REIT, reported total revenues of P7.14 billion and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of P5.04 billion, up 41% and 39% year on year, respectively, on the back of stable operations and consistent asset infusions. Net income was P4.93 billion, up 43% year on year, excluding the net fair value change in investment properties. At the end of the year, AREIT properties had a 97% average occupancy rate, which was higher than the industry average.

AREIT's 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, resulting in a 4% increase in dividends per share to P0.55 in the third quarter, up from P0.53 in the second quarter.

During its Board of Directors meeting, AREIT declared a cash dividend of P0.55 per outstanding common share for the fourth quarter of 2023. The dividends will be paid on March 20, 2024, to stockholders who were on record as of March 4, 2024. This second quarterly dividend takes AREIT's annual dividend per share to P2.15 for 2023, up 8.6% from P1.98 per share in 2022 and nearly doubling the company's first quarterly payout of P0.28 per share when it launched in 2020.

On February 12, 2024, AREIT received stockholder approval for a property-for-share swap transaction with Ayala Land, Inc. (ALI) and its subsidiaries, Greenhaven Property Ventures, Inc. and Cebu Insular Hotel Co., Inc. ("Subsidiaries"), involving Ayala Triangle Tower Two, Greenbelt Mall 3 and 5, Holiday Inn and Suites Makati, and SEDA Ayala Center Cebu, valued at P21.8 billion, and the 276-ha. Buendia Christiana Holdings Corporation (BCHC), a subsidiary of ACEN Corporation, has industrial land in Zambales valued at P6.8 billion. AREIT also completed the cash acquisition of SEDA Lio in El Nido, Palawan, from ALI subsidiary Econorth Resort Ventures, Inc. for P1.19 billion on January 17, 2024.

The planned infusions will increase AREIT's Assets Under Management (AUM) to P117 billion, quadrupling the size of the IPO. This is consistent with AREIT's goals of considerably expanding and diversifying its portfolio to capitalize on numerous growth possibilities in the real estate sector. AREIT will execute the Deed of Exchange with ALI, its subsidiaries, and BCHC and seek SEC approval by March 2024. Following approval, new shares will be issued, and revenue from the assets will accrue to AREIT. 

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

On January 30, 2024, AREIT earned EDGE Zero Carbon Certification for eight office buildings totaling 354,000 square meters, making Ayala Land and AREIT offices the Philippines' largest EDGE Zero Carbon certified portfolio.
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AREIT, Inc. (AREIT) was founded on September 4, 2006, as a real estate company. It was previously known as One Dela Rosa Property Development, Inc. before changing to its current name on April 12, 2019.
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It is the Philippines' first Real Estate Investment Trust (REIT), with the primary goal of owning and investing in an income-generating commercial portfolio of office, retail, and hotel properties that match its investment criteria.