AREIT Inc., the real estate investment trust (REIT) arm of Ayala Land Inc., is taking over a 276-hectare industrial property from affiliate, renewable energy company ACEN Corp., for almost P6.8 billion, further cementing its position as the country’s biggest REIT.
AREIT will issue 199.12 million new shares to ACEN subsidiary Buendia Christiana Holdings Corp. to pay for the land, which translates to about P34 per share, a stock exchange filing on Friday showed.
The final deal amount was validated by a third-party fairness opinion and is subject to the approval of shareholders and the relevant government regulatory agencies, AREIT noted in the filing.
After acquiring the land, another of ACEN’s solar power-focused subsidiary, Giga Ace 8 Inc., will lease the property from AREIT for 25 years at a guaranteed fixed rent escalating every year, and with the option to renew for another 25 years.
The deal will increase AREIT’s total leasable land area to 861,000 square meters, which is the largest and most diversified REIT footprint the country.
AREIT will own the 286 hectares of industrial land. This includes 9.8 hectares it currently owns in Laguna Technopark.
“This will increase AREIT’s assets under management from P87 billion to P94 billion,” the filing showed.
AREIT also announced on Friday that its board approved cash dividends of P0.55 per share for the third quarter of 2023. The latest dividends, nearly double what the company paid out after its initial public offering in 2020, are payable on Dec. 15, 2023 to stockholders on record as of Dec. 1.
“For the first three quarters this year, AREIT has declared P1.60 per share, a 10 percent increase versus the same period last year,” the company said.
“The company continues to perform consistently well, registering a 97-percent occupancy level and a long weighted average lease expiration of nine years,” it added.
AREIT earlier reported a net income of P3.4 billion during the first nine months of the year, which was a 43-percent increase from the same period in 2022. Total revenues grew 41 percent to P5 billion during the same period.