AREIT sees boost in Q1 income from acquisitions

AREIT, Inc. saw a 45% surge in its first-quarter (Q1) net income to P1.47 billion, attributed to its asset acquisitions.

“AREIT’s first-quarter income was boosted by acquisitions which included the new One Ayala Avenue East and West Office Towers, Glorietta 1 and 2 Mall and Office buildings at Ayala Center Makati, MarQuee Mall in Pampanga and the Seda Hotel in Lio, El Nido,” the company said in a statement to the stock exchange on Wednesday.

AREIT is the real estate investment trust of listed property developer Ayala Land, Inc. (ALI).

First-quarter revenue rose by 43% to P2.11 billion, while earnings before interest, taxes, depreciation, and amortization increased by 45% to P1.51 billion.

The company has P88.6 billion worth of assets under management (AUM) consisting of malls, offices, hotels, and industrial land. Its overall occupancy rate stood at 96%.

On March 19, AREIT executed a deed of exchange with ALI and its subsidiaries, Greenhaven Property Ventures, Inc. and Cebu Insular Hotel Co., Inc., and Buendia Christiana Holdings Corp., involving the issuance of 841,259,412 primary common shares at P34 per share in exchange for P28.6 billion worth of assets.

The assets are Ayala Triangle Gardens Tower Two, Greenbelt 3 and 5, Holiday Inn in Ayala Center Makati and Seda Ayala Center Cebu, and the 276-hectare land in Zambales for solar power plant operations.

Once approved by regulators, AREIT’s AUM will reach P117 billion, quadruple the size since its initial public offering in August 2020.

AREIT shares rose by 0.15% or five centavos to P33.95 apiece on Wednesday. — Revin Mikhael D. Ochave