AREIT, Inc., the country’s real estate investment trust pioneer, posted a 49 percent increase in net income to P7.4 billion in 2024 from P4.93 billion a year earlier, excluding net fair value changes in investment properties.

In a stock exchange report on Friday, the company said total revenues rose 44 percent to P10.3 billion from P7.14 billion, while EBITDA grew 49 percent to P7.5 billion from P5.04 billion.

The gains were driven by contributions from newly acquired properties, including Ayala Triangle Gardens Tower 2, Greenbelt 3 and 5, Holiday Inn Hotel & Suites Makati, Seda Ayala Center Cebu, and industrial land in Zambales.

Q4 cash dividends

The company declared a fourth-quarter cash dividend of P0.58 per share, payable on 21 March, bringing its total 2024 dividend to P2.28 per share, a 6 percent increase from 2023.

AREIT also disclosed that its board of directors approved the acquisition of commercial properties in Cebu, Davao, and Cagayan de Oro from Ayala Land, Inc. (ALI) and its subsidiaries through a P21 billion property-for-share swap.

The deal will see ALI and its subsidiaries subscribe to 505.89 million AREIT shares at P41.50 per share in exchange for eight commercial assets, including office buildings, malls, and a hotel. Shareholders will vote on the transaction on 24 April.

Portfolio diversification

“The acquisition is in line with our growth target of P15-P20 billion in AUM per year. This will further diversify the portfolio and deepen AREIT’s presence in the fast-growing regional cities in Visayas and Mindanao,” said AREIT president and CEO Jose Eduardo A. Quimpo III.

“The acquisition will be accretive to shareholders of AREIT in line with our commitment to delivering returns and long-term value,” he added.

The acquisitions will increase AREIT’s assets under management to P138 billion and expand its total gross leasable area to 4.2 million square meters.