AREIT cleared to list more shares

MANILA, Philippines — AREIT Inc., the listed pioneering real estate investment trust (REIT) of the Ayala Group, has obtained the green light from the Philippine Stock Exchange (PSE) to list additional shares.

In a disclosure yesterday, AREIT said the PSE approved its application to list an additional 483.2 million common shares (swap shares) covering the company’s property-for-share swap transaction with its sponsor, Ayala Land Inc. (ALI), and subsidiaries Westview Commercial Ventures Corp. and Glensworth Development Inc.

The transaction involves the infusion of three Vertis North Commercial Development office buildings and a retail podium located in Quezon City; One and Two Evotech in Nuvali Santa Rosa, Laguna; Bacolod Capitol Corporate Center and Ayala Northpoint Technohub, both located in Negros Occidental; and office condominium units at BPI Philam Life buildings in Makati CBD and Madrigal Business Park in Alabang.

The swap shares were listed with the PSE and shall be subject to a lock-up period of 180 days with BPI Securities Corp. as escrow agent.

This property-for-share swap resulted in a 13 percent year-on-year increase in AREIT’s dividend per share in the first half of 2022, the company likewise disclosed.

With this, AREIT’s gross leasable area expanded to 549,000 square meters and Assets Under Management (AUM) to P53 billion.

AREIT posted strong results in the first half   on account of stable operations and the contribution of assets acquired in 2021.

Net income – excluding fair value change in investment properties and the one-time gain on finance lease – registered at P1.61 billion, 64 percent higher year-on-year, driven by revenues, which increased by 67 percent to P2.36 billion.

At the same time, Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew by 62 percent to P1.7 billion compared to last year.

In August, AREIT’s board of directors approved the declaration of P0.49-per share in cash dividends from operations in the second quarter, higher than P0.48-per share in the first quarter.

This declaration brings the total dividends to P0.97 percent share for the first half, 10 percent higher year-on-year.

AREIT recorded an average occupancy of 97 percent and a rental collection rate of 98 percent, reflecting high-quality tenancy across its properties, according to its first half net income filing in August.