AREIT, Inc. (AREIT), the first Philippine REIT, posted total revenues of P7.14 billion and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of P5.04 billion, 41% and 39% higher year-on-year respectively, on account of stable operations and consistent asset infusions. Net income registered at P4.93 billion, 43% higher year-on-year, excluding the net fair value change in investment properties. AREIT’s properties recorded a 97% average occupancy at the end of the year, higher than the industry.
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 3rd quarter from P0.53 in the 2nd quarter of the year.
During its Board of Directors meeting today, AREIT declared cash dividends of P0.55 per outstanding common share for the 4th 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 P2.15 for 2023, an 8.6% 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.
Consistent with its thrust to accelerate growth, AREIT secured stockholders’ ratification last February 12, 2024, for the 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, with a value of P21.8 billion, and the 276-ha. industrial land located in Zambales owned by Buendia Christiana Holdings Corporation (BCHC), a wholly-owned subsidiary of ACEN Corporation with a value of P6.8 billion. AREIT also completed its cash acquisition of SEDA Lio in El Nido, Palawan, from ALI subsidiary Econorth Resort Ventures, Inc. for P1.19 billion last January 17, 2024.
The planned infusions will bring AREIT’s Assets under Management (AUM) to P117 billion, quadruple the size from the IPO. This is in line with AREIT’s objectives to significantly expand and diversify its portfolio to capitalize on various growth opportunities across the real estate sector. AREIT will execute the Deed of Exchange with ALI, its subsidiaries, and BCHC and apply for its approval with the SEC by March 2024. The new shares will be issued, and the income from the assets shall accrue to AREIT upon approval.
On January 30, 2024, AREIT received EDGE Zero Carbon Certification for eight office buildings comprising 354,000 square meters, making Ayala Land and AREIT’s offices the largest EDGE Zero Carbon certified portfolio in the Philippines.