Assets swap seen beefing up AREIT

Image from bilyonaryo.com

AREIT Inc., the country’s pioneer real estate investment trust, is hoping to further expand its asset portfolio in the coming years following the regulator’s approval of its P11.23-billion asset swap deal with Ayala Land Inc.

In a stock market report on Wednesday, the share swap deal will help the company grow its earnings while supporting it to expand its leasing portfolio with prime and stable assets.

The Securities and Exchange Commission recently approved the planned subscription of Ayala Land Inc. to over 252 million shares in AREIT shares in exchange for

ALI-owned Cebu commercial properties valued at P11.25 billion.

The transaction follows the Deed of Exchange dated 19 May 2022.

Stocks total 1.76B

AREIT’s outstanding common shares will increase to 1.76 billion from 1.50 billion wherein ALI will own approximately 66 percent of the total shares while adhering to the prescribed minimum public ownership requirements under Philippine laws.

With the completion of the transaction, AREIT’s gross leasable area has expanded to 673,000 square meters.

AREIT said it will apply for the Bureau of Internal Revenue Certificate Authorizing Registration for the new assets and listing the shares in favor of ALI within the first quarter.

In anticipation of the approval, AREIT declared P0.49 per share third-quarter dividends last October 2022 to stockholders of record as of 25 October 2022.

At the closing price of P35.70 on 17 January, the company’s total market capitalization reached P63 billion from P27 billon during its initial public offering in 2020.


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