ALI 1H23 net income up 41% to P11.4B; presales up 18%

AREIT, Inc. (AREIT), the first Real Estate Investment Trust (REIT) in the Philippines, secured the approval of its stockholders on its second property-for-share swap with its sponsor, Ayala Land, Inc. (ALI) during its Annual Stockholders’ Meeting held on April 21, 2022.

The transaction involves six Cebu-based office buildings with an aggregate value of P11,257,889,535.91, in exchange for 252,136,383 AREIT primary common shares at a price of P44.65 per share, as validated by a third-party fairness opinion. This new asset infusion will expand AREIT’s gross leasing area to 673 thousand square meters or P64 billion in Assets Under Management (AUM) in 2022 – a 113% increase since AREIT went public. This growth exceeds its target to double in size within two years from its IPO.

AREIT’s full-year dividends from its 2021 income totaled P1.77 per share, a 34% increase from 2020 and 12% higher than its REIT plan projection during the IPO. With this prospective infusion of Cebu assets, AREIT’s dividend per share is projected to increase further.