MANILA, Philippines – Ayala Land is infusing its flagship offices and malls worth P22.5 billion into AREIT, its real estate investment trust (REIT) company.
The companies will conduct a property-for-share swap where Ayala Land will add assets into AREIT for 607.5 million primary common shares, where each share is valued at P37 each.
The infusion would bring AREIT’s assets under management to P87 billion, almost thrice its initial public offering price.
Among the assets to be included are Glorietta 1 and 2, giving the investing public financial opportunities as the Philippine economy recovers from the impact of pandemic lockdowns.
AREIT is also adding in its assets in the Makati central business district area, specifically the new One Ayala Avenue East and West BPO Towers at the corner of Ayala Avenue and EDSA. The MarQuee mall in Angeles, Pampanga will also be included in the mix.
These assets have a combined gross leasable area of 190,000 square meters, an overall occupancy rate of 99%, and a weighted average lease expiry of 14.5 years.
“The rebound of commercial businesses is an opportunity for AREIT to widely diversify its assets with more retail buildings. The infusion of Glorietta 1 and 2 mall and BPO buildings, as well as the brand new One Ayala Avenue BPO towers, is testament to AREIT as Ayala Land’s flagship REIT”, said AREIT president and chief executive officer Carol Mills.
AREIT debuted three years ago and has since resulted in a 52% total shareholder return.
Ayala Land posted a net income of P18.6 billion in 2022, a 52% increase from 2021. Consolidated revenues went up 19% to P126.2 billion.
Commercial leasing revenues jumped 62% to P33.4 billion, as mall foot traffic went up 110% and exceeding pre-pandemic levels. Earnings from shopping centers doubled to P16.1 billion.
Meanwhile, revenues from office leasing grew 13% to P11.1 billion. – Rappler.com
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