AREIT Posts Record Growth with 43% Increase in Net Income

AREIT, Inc., the pioneer Philippine Real Estate Investment Trust (REIT), has announced a remarkable year-over-year growth in its financial performance for 2023, underscoring its leadership in the sector.

The company reported total revenues of P7.14 billion and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of P5.04 billion, marking increases of 41% and 39% respectively. This financial upturn is attributed to AREIT’s stable operations and strategic asset acquisitions, which have also led to a 43% rise in net income to P4.93 billion, excluding net fair value change in investment properties.

Demonstrating its operational excellence, AREIT achieved an average occupancy rate of 97% across its properties by year-end, surpassing industry standards. The company’s strategic acquisitions, including prime assets such as One Ayala Avenue East and West Towers, Glorietta 1 and 2 Mall, BPO buildings at Ayala Center, MarQuee Mall in Angeles, Pampanga, and more, have not only expanded its portfolio but also contributed to a 4% dividend increase per share in the third quarter.

In its latest Board of Directors meeting, AREIT declared a fourth-quarter cash dividend of P0.55 per outstanding common share, payable on March 20, 2024. This decision elevates the annual dividend-per-share to P2.15 for 2023, an 8.6% increase from the previous year, highlighting the company’s robust financial health and commitment to rewarding its shareholders.

Further solidifying its growth trajectory, AREIT has ratified a significant property-for-share swap transaction with Ayala Land, Inc. and its subsidiaries, involving high-value properties expected to quadruple AREIT’s Assets under Management (AUM) to P117 billion from its IPO size. These moves are aligned with AREIT’s goal to expand and diversify its portfolio, reducing concentration risk and offering greater dividend yields to shareholders.

AREIT President and CEO, Carol T. Mills, emphasized the company’s growth initiatives, stating that these efforts will “profoundly enlarge the portfolio further, diversifying the assets, reducing concentration risk, and most importantly, providing our shareholder’s dividend accretion.” She also highlighted AREIT’s role as a key vehicle for capital recycling and growth under the guidance of its sponsor, Ayala Land.

In addition to its financial achievements, AREIT has made significant strides in sustainability, receiving EDGE Zero Carbon Certification for eight office buildings, which represents the largest EDGE Zero Carbon certified portfolio in the Philippines. This accomplishment further establishes AREIT’s commitment to environmental stewardship and positions it as a leader in sustainable real estate development.

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