AREIT income surged to P7.4B in ’24
Gains from new assets infused by its sponsor caused a 49-percent surge in the 2024 earnings of AREIT Inc. to log P7.4 billion, with the company set to acquire more commercial properties this year.
AREIT, the real estate investment trust arm of property giant Ayala Land Inc. (ALI), said in a regulatory filing on Friday that its revenues likewise ballooned by 44 percent to P10.3 billion.
Earnings before interest, taxes, depreciation and amortization also jumped by 49 percent to P7.5 billion.
Acquisitions made last year—Ayala Triangle Gardens Tower 2 office building, Greenbelt 3 and 5 malls, Holiday Inn Hotel and Suites Makati, Seda Ayala Center Cebu and an industrial land in Zambales province—contributed to overall growth, according to AREIT.
At the same time, AREIT said its board of directors had approved the acquisition of P21 billion worth of properties in the cities of Cebu, Davao and Cagayan de Oro from ALI and its subsidiaries.
In exchange, ALI, Accendo Commercial Corp., Cagayan de Oro Gateway Corp. and Central Bloc Hotel Ventures Inc. will subscribe to 505.89 million primary common shares of AREIT at P41.50 each. This represents a 6.3-percent premium over its last closing price.
Once completed, the property infusion will expand AREIT’s assets under management to P138 billion.
“This will further diversify the portfolio and deepen AREIT’s presence in the fast-growing regional cities in Visayas and Mindanao,” AREIT president and CEO Jose Eduardo Quimpo II said in a statement.
“The acquisition will be accretive to shareholders of AREIT in line with our commitment of delivering returns and long-term value,” Quimpo added.
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