AREIT earnings surge 45% on new acquisitions

AREIT earnings surge 45% on new acquisitions

/ 07:34 AM May 16, 2024

MANILA, Philippines — New building acquisitions helped lift the first-quarter earnings of Zobel family-led Ayala Land Inc.’s real estate investment trust (REIT) arm despite a challenged office space industry.

In a stock exchange filing on Wednesday, AREIT Inc. said its net income during the period surged by 45 percent to P1.47 billion.

Revenues likewise climbed by 43 percent to P2.11 billion.

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According to AREIT, its acquisition of the new One Ayala Avenue East and West office towers, Glorietta 1 and 2 mall and office buildings in Makati City, MarQuee Mall in Pampanga province, and Seda Hotel in Palawan province boosted profits.

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READ: AREIT expects office occupancy rate to remain ‘strong’

AREIT’s overall occupancy remained at 96 percent, which it said was better than the industry average.

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AREIT president and CEO Carol Mills previously said the average vacancy rate in the office industry stood between 18 percent and 20 percent.

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As of the end of March, the country’s first REIT company noted that its assets under management (AUM)—composed of offices, malls, hotels, and industrial land—stood at P88.6 billion.

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READ: AREIT’s shareholders ratify P28.6-B land deal

The company is presently working to diversify its portfolio to mitigate vacancy risks.

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In March, AREIT announced it planned to acquire P28.6 billion worth of assets from ALI and its subsidiaries via asset-for-share transactions.

AREIT will issue 841.26 million common shares at P34 each in exchange for Ayala Triangle Gardens Tower Two, Greenbelt 3 and 5, and Holiday Inn in Makati; Seda Ayala Center in Cebu, and a 276-hectare land in Zambales province currently under ACEN Corp., the listed energy platform of the Ayala Group. INQ

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TAGS: AREIT, Earnings

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