Gains from old, new assets boost AREIT earnings
With its properties nearing full occupancy and new acquisitions also making money, the real estate investment trust (REIT) arm of property giant Ayala Land Inc. reported a 46-percent increase in ninemonth earnings.
AREIT on Thursday said income in the January to September period grew to P5 billion, while revenues swelled by 42 percent to P7.1 billion.
“AREIT’s performance in the first nine months was boosted by the contributions of its 2024 and 2023 acquisitions, coupled with stable operations,” AREIT said in a stock exchange filing.
As of end-September, its building gross leasable area (GLA) stood at 1 million square meters, while land GLA was at 2.9 million sq m.
117.6-B assets
AREIT’s assets under management ended at P117.6 billion, which has expanded nearly four times since its stock market debut in 2020. Its properties recorded a 99-percent overall occupancy rate, brushing off any weakness hounding the real estate sector since the onset of the COVID-19 pandemic.
“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,” AREIT president and CEO Jose Eduardo Quimpo II said.
In September, the Securities and Exchange Commission approved AREIT’s P28.6-billion property-for-share swap with ALI, its REIT sponsor, and three other affiliates. This represents AREIT’s largest asset acquisition since its initial public offering.
Under the deal, AREIT will issue a total of 841.26 million primary common shares to ALI, Greenhaven Property Ventures Inc., Cebu Insular Hotel Co. Inc. and Buendia Christiana Holdings Corp.
In return, AREIT will get five commercial buildings: Ayala Triangle Tower 2, Greenbelt 3 and 5, and Holiday Inn and Suites in Makati City; and Seda Ayala Center in Cebu City.
The company will also get a 276-hectare industrial land in Zambales province that is currently being utilized for ACEN Corp.’s solar power plant.
The commercial and office landlord has been stacking up on new properties to widen its portfolio. It recently raised P42.7 million to support its acquisition of Seda Lio hotel in El Nido, Palawan, province after selling three office condominium units.
