AREIT 9M23 net income up 43% to P3.4B

November 14, 2023– AREIT, Inc. (AREIT) posted total revenues of P5.00 billion and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of P3.56 billion, 41% and 39% higher year-on-year respectively, on account of stable operations and the contribution of the new assets acquired this year and 4Q 2022 through its property-for-share transactions with Ayala Land, Inc. (ALI). Net income registered at P3.43 billion, 42% higher year-on-year, excluding the net fair value change in investment properties. AREIT's properties recorded a 97% occupancy at the end of the period.

Last September 20, 2023, AREIT obtained the Securities and Exchange Commission’s (SEC) approval of ALI and its subsidiaries Ayalaland Malls, Inc., and Northbeacon Commercial Corporation’s subscription to 607,559,380 AREIT shares in exchange for the following properties: One Ayala Avenue East and West BPO Towers at the corner of Ayala Avenue and EDSA, the Glorietta 1 and 2 mall wing and BPO buildings at Ayala Center, and the MarQuee Mall in Angeles, Pampanga. The total value is Php22,479,697,060.00, under the Deed of Exchange dated June 2, 2023.

The new assets contributed to AREIT’s performance beginning the third quarter of 2023 and boosted its gross leasable area (GLA) more than five-fold to 861 thousand sq. meters. Moreover, the company’s Assets Under Management (AUM) reached approximately P87 billion, nearly triple its size since it went public and currently the largest among Philippine REITs. From its initial public offering in 2020, the company has grown revenues annually by 51% on average, driven by the significant expansion of its assets. AREIT, the first Philippine REIT, has a diversified portfolio of offices, malls, hotel, and industrial land, which reduces concentration risk in any one particular asset class.   

Last September 28, 2023, AREIT was recognized for its corporate governance practices. It received a two-Golden Arrow award from the Institute of Corporate Directors based on the 2022 ASEAN Corporate Governance Scorecard at the 2023 Golden Arrow Awards.

AREIT is a constituent of the FTSE EPRA Nareit Asia ex-Japan REITs 10% capped Index, the MSCI Philippine Small Cap Index, the FTSE Small Cap Index, and the Philippine Property Index.