AREIT blazes trail for new asset class
Written by: Tina Arceo-Dumlao
Property giant Ayala Land Inc broke new ground in 2020 when it defied the heightened uncertainties surrounding the COVID-19 pandemic and listed AREIT Inc, the first real estate investment trust to debut on the Philippine Stock Exchange.
By braving the market, AREIT paved the way for the growth of the new asset class that has literally paid dividends for investors who took advantage of the income opportunities presented by these high dividend-paying companies.
AREIT’s entry to the market at the initial listing price of P27.00 each reflected its confidence in the Philippine economy despite the COVID-19 pandemic.
The bold move was also the result of Ayala Land’s long-standing desire to create a new equity instrument for local investors to invest in high-value commercial real estate while enabling the company to reinvest much-needed capital in the Philippines.
Since it listed in 2020, AREIT share price grew over 30% to-date. Coupled with quarterly dividends, AREIT’s total shareholder return is nearly 50%. This makes it one of the few stocks that continued to give investors a profit despite looming uncertainties in the local and global markets.
And with the Philippines overcoming the worst of the devastating COVID-19 pandemic, chances are great that AREIT Inc will be able to unlock more value from the growing assets within its fold.
To recall, AREIT beefed up its assets in 2022 with the infusion of six additional office buildings in Cebu valued at about P11.26 billion, thus exceeding the goal of doubling its portfolio in just two years from its listing on the PSE.
AREIT started with 153,000 square meters of property assets worth P30 billion which expanded to 549,000 sqm the following year and then further up to 673,000 sqm with the infusion of the Cebu assets.
The Ayala North Exchange in Makati City is part of AREIT’s growing portfolio. AREIT started with 153,000 square meters of property assets worth P30 billion which expanded to 549,000 sqm the following year and then further up to 673,000 sqm with the infusion of the Cebu assets.
AREIT’s enviable position as a pioneer in its field was validated after bagging the awards for Best Premiere Real Estate Investment Trust and Most Innovative REIT Offering Strategy for the Philippines category at the 10th Annual International Finance Awards 2022 held in Bangkok, Thailand.
AREIT Head of Investor Relations Mike Garcia and President and CEO Carol Mills receive the Best Premier Real Estate Investment Trust Award from Chandon Phanouvong, Commercial Counsellor of Laos Embassy at the 10th Annual International Finance Awards 2022 held in Bangkok, Thailand last February 3.
Aside from the award given by International Finance, AREIT was also a recipient of 6 international awards including, among others, Most Outstanding IPO in the Philippines by Asia Money, Best IPO by The Asset, and Southeast Asia Deal of the Year by Finance Asia.
“We are both pleased and honored receiving these prestigious, international awards as they recognize our passion to grow the REIT space in the Philippines and promote inclusiveness in real estate investing,” said AREIT President and CEO Carol T. Mills.
These recognitions likewise reinforced AREIT’s position as the leading REIT in the country and it intends to build on that by continuing to grow its portfolio and provide an innovative investment option to the Filipino investing public.
Indeed, as the first Philippine REIT that successfully listed on the PSE even with the COVID-19 pandemic at its height, AREIT is committed to further grow its leasing portfolio with prime and stable assets that contribute to the Philippine economy.
AREIT is a subsidiary of Ayala Land, Inc. the largest property developer in the country, with more than 12 thousand hectares of land bank and a solid track record in developing large-scale, integrated, mixed-use, and sustainable estates.
With 49 estates across the country, Ayala Land hosts its diversified portfolio of complementary businesses including development of residential, office, commercial, and industrial properties for sale; commercial leasing through shopping centers, offices, hotels, resorts, factory buildings, warehouses, co-living, and co-working spaces; services such as construction, property management, retail energy supply and airlines; and strategic property-related investments.
Ayala Land is celebrating 34 years of enhancing land and enriching lives for more people.
ADVT.
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