CREIT Q1 profit surges 12 times on hefty rental earnings

 

Megawide affiliate Citicore Energy REIT Corp. (CREIT) reported a net income of P300 million from January to March, a 12-fold jump from the same period last year.

The country’s first energy REIT said iit began to realize rental income from its renewable assets leased out to solar plant operators during the period.

Gross revenues soared 470 percent to P332 million, largely comprising lease income from various solar plant companies. EBITDA jumped 49 percent to P322 million.

“With an established list of tenants operating in a cycle-resilient industry, CREIT is optimistic in generating recurring green sources of lease revenues, translating to increasing distributable income and attractive dividend yields to our shareholders,” said Oliver Y. Tan, CREIT president and CEO.

Citicore’s aggressive growth pipeline and commitment to support CREIT over the long-term is expected to sustain and even surpass the company’s first quarter performance, Tan said.

He said CREIT would continue beefing up its current asset portfolio to hit its goal of 1,500 megawatts by 2025.

SOURCE:Bilyonaryo

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PSE greenlights listing of Manny Villar’s REIT, IPO kicks off May 30

 

 

The Philippine Stock Exchange has approved the initial public offering of VistaREIT Inc. worth as much as P9.18 billion.

VistaREIT, the real estate investment trust of ultra bilyonaryo Manny Villar, will offer up to 3.67 billion common shares at a maximum price of P2.50 each, with an overallotment option of up to 333.75 million shares.

The offer price will be finalized on May 26. The IPO will run from May 30 to June 3 while the listing of the shares has been set on June 15.

Proceeds from the offer shall be reinvested in the Philippines, pursuant to the Real Estate Investment Trust Act of 2009.

As mandated by law, VistaREIT shall distribute to shareholders at least 90 percent of its annual distributable income as dividends.

BDO Capital & Investment Corp. China Bank Capital Corp., PNB Capital and Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp. are the joint lead underwriters for the offer, with Abacus Capital and Investment Corporation as participating underwriter.

VistaREIT’s portfolio comprises 10 community malls and two office buildings with a gross leasable area of 256,403.95 square meters.

The company’s malls are located in Metro Manila, Cavite, Rizal, Bulacan, Pampanga, and Cebu, while its office buildings are in Taguig and Bacoor, Cavite

SOURCE: Bilyonaryo

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Ayala REIT Q1 earnings soar 59% on steady rental income

AREIT Inc., the country’s first real estate investment trust, reported a 59 percent jump in its first quarter profit to P796 million, on the back of higher revenues from stable operations and the infusion of new assets.

Total revenues surged by 66% to P1.2 billion, while earnings before interest, taxes, depreciation and amortization grew 58 percent to P843 million

AREIT recorded an average occupancy of 97 percent and a rental collection rate of 98 percent, reflecting stable and high-quality tenancy across its properties.

Shareholders approved the company’s second property-for-share swap with sponsor Ayala Land Inc. (ALI).

The deal involves six Cebu- based office buildings worth P11.26 billion in exchange for 252.14 million AREIT common shares at a swap price of P44.65 per share.

With the addition of these new assets, AREIT’s gross leasable area will increase to 673,000 square meters or P64 billion in assets under management, an increase of 113 percent since the company went public, exceeding its target to double in size within two years from its IPO. 

SOURCE: Bilyonaryo

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AREIT gets stockholders nod to acquire P11B Cebu assets

The country’s first real estate investment trust AREIT Inc. secured the green light from its stockholders to acquire six Cebu-based office buildings valued at P11.26 billion from its sponsor Ayala Land Inc. (ALI).

The transaction will boost AREIT’s gross leasing area to 673,00 square meters or assets under management to P64 billion, exceeding the group’s target to double in size within two years from its stock market debut.

The six office buildings are eBloc Tower 1 to 4 located at the Cebu IT Park as well as ACC Tower and Tech Tower in Ayala Center Cebu.

In exchange for the assets, AREIT will issue 252.14 million shares to ALI at a price of P44.65 apiece

AREIT’s full-year dividends from its 2021 income amounted to P1.77 per share, up 34 percent from 2020 and 12 percent higher than its REIT plan projection during its initial public offering.

With the infusion of Cebu assets, AREIT’s dividend per share is projected to increase further. 

SOURCE: Bilyonaryo

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Gokongweis bulk up RCR REIT portfolio with infusion of P5.9B office building

The country’s largest real estate investment trust, RL Commercial REIT Inc. (RCR) has finalized the acquisition of Robinsons Cyberscape Gamma in a P5.9 billion property-for-share swap deal.

RCR’s sponsor Robinsons Land Corp. will get 777.81 million shares in exchange for the infusion of the 37-storey, Grade-A, PEZA-registered building.

Robinsons Cyberscale Gamma has a total gross leasable area of 44,797 square maters with occupancy of over 90 percent. It is strategically located within the Ortigas CBD and is the 16th asset to be added to RCR’s portfolio.

With this acquisition, RCR’s asset size will expand by 10.3 percent to 480,500 sqm.

Robinsons Cyberscape Gamma has a projected dividend yield of 5.64 percent.

Following the infusion of Cybergate Bacolod and Cyberscape Gamma, RCR’s projected annual dividend yield for 2022 is 6.06 percent at an IPO price of P6.45 per share.

“Our goal has always been to grow and diversify the portfolio of RCR through the acquisition of yield-accretive assets. We have been consistent and in line with our target plans as disclosed in our REIT plan, which solidifies our strong commitment to our shareholders,” RCR president and CEO Jericho Go said. 

SOURCE: Bilyonaryo

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Not to be left behind, Manny Villar’s REIT files for P9B IPO

The commercial real estate investment trust of ultra bilyonaryo Manny Villar has joined the frenzied rush by companies to go public this year.

In a statement, VistaREIT Inc. said it filed with the Securities and Exchange Commission its registration statement covering its planned initial public offering amounting to up to P9.18 billion.

It will offer up to 3.33 billion in secondary common shares, with an option to jack up the size by another 333.75 million shares at P2.50 each.

China Bank Capital Corp. is the issue coordinator and together with BDO Capital & Investment Corp., PNB Capital and Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp. will be the joint lead underwriters and book runners.

VistaREIT is backed by Vista Land , the country’s largest homebuilder. It will be the flagship office and mall REIT of Vista Land.

Its initial portfolio consists of 10 community malls and two office buildings with a total leasable area of 256,404 square meters.

The malls are located in Vista Land’s integrated developments, which serve as a one-stop shop for its residents in Las Piñas City, Bacoor City, General Trias City, Imus City, Tanza, Antipolo City, San Jose Del Monte City, San Fernando City and Talisay City in Cebu.

The office buildings, on the other hand, are located in Taguig City and Bacoor City.

VistaREIT said these properties enjoyed consistently high occupancy rates of 93 percent to 100 percent of their respective GLAs over the past three years.

Most of the country’s top real estate companies had already taken their respective REITs public — Ayala Land (AREIT), Robinsons Land (RCR), Megaworld (MREIT), Filinvest Land (FILREIT),

SOURCE: Bilyonaryo

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Filinvest REIT books P1.9B profit in 2021 on resilient BPO sector

The real estate investment trust of the Gotianun family posted a net income of P1.9 billion last year, driven by rental revenues from business process outsourcing companies.

Filinvest REIT Corp. (FILRT) registered rental and other revenues of ₱3.4 billion and a gain on derecognition of lease liabilities of ₱189 million.

The company has distributed three quarterly cash dividends to date totaling ₱0.336 per share. This is equivalent to an annualized dividend yield of 6.4 percent which is higher than benchmark rates and better than the 6.3 percent dividend yield it projected for 2021 in its REIT plan and based on its initial public offering price of ₱7 per share in August last year.

“ We are optimistic of a strong economic recovery in 2022, particularly in the business process outsourcing (BPO) industry, which comprises about 91 percent of our tenant base,” said FILRT president and CEO Maricel Brion-Lirio.

FILRT believes that the government’s back-to-office directive will boost the the company’s office leasing segment as BPOs rebuild their on-site footprint.

The company’s portfolio consists of 17 Grade A office buildings totaling over 300,000 square meters of gross leasable area (GLA).

Of these, 16 of the 17 buildings are in Northgate Cyberzone in Filinvest City in Alabang, a PEZA Special Economic Zone and IT park while another building is located in the gateway of Cebu IT park in Lahug, Cebu City. The assets were valued by an independent appraisal company at ₱48.5 billion.

SOURCE: Bilyonaryo

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Ayalas to triple AREIT assets to P64B after three years with Cebu buildings infusion

The country’s first real estate investment trust, AREIT Inc. will acquire P11.26 billion worth of office properties from sponsor Ayala Land Inc., a move that will further bulk up its portfolio of leasable assets.

AREIT disclosed to the Philippine Stock Exchange that it had entered into a deal with ALI for the issuance of 252.136 million of its primary common shares in exchange for six Cebu-based office buildings with a total gross leasable area of 124,299 square meters. This would mark the second property-for-share swap transaction between ALI and AREIT.

The office assets to be infused into AREIT are eBloc Towers 1 to 4 located at Cebu IT Park, ACC Tower and Tech Tower located at Ayala Center Cebu, primarily leased by major BPOs in the country. They have an overall occupancy rate of 97 percent.

The deal scales up AREIT’s assets under management to 673,000 sqm or P64 billion, a 213 percent jump since the company went public.

This growth exceeds AREIT’s target to double in size within two years from its initial public offering.

Since its IPO, AREIT delivered on its growth plans, resulting in 92 percent percent total shareholder return from dividend yield and price appreciation.

“We are focused on delivering our commitment to grow our assets, diversify our geographic and tenant base and create more shareholder value with increasing dividends and price appreciation. With this new asset infusion, we foresee AREIT’s dividend per share to increase, in addition to the recently concluded asset infusions last year”, said AREIT president and CEO Carol T. Mills.

SOURCE: Bilyonaryo

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CREIT declares maiden dividends

Citicore Energy REIT Corp. the country’s first energy REIT, declared its first dividend of 35 centavos per share, just two weeks after listing on the stock exchange.

The dividends represent 102 percent of CREIT’s distributable income for 2021.

“The board of CREIT approved the cash dividend to show CREIT’s commitment to investors as a sustainable and attractive dividend paying instrument. This maiden dividend also reflects our confidence in the business model and its long-term prospects, as effective yields remain above existing benchmarks,” said company president and CEO Oliver Tan.

Based on the REIT plan, CREIT is projected to post a net distributable income of P226.9 million in 2021, of which 100 percent will be paid out as dividends to eligible shareholders.

For 2022 and 2023, the company is expected to distribute 107 percent and 106 percent of its projected distributable income, generating a dividend yield of 7 percent and 7.4 percent, respectively, based on the IPO price of P2.55/share.

CREIT’s earnings for 2021 largely came from the sale of electricity of its Clark Solar plant and the balance comprising seven percent of total earnings came from the two-months lease income from two leased properties in Tarlac.

SOURCE: Bilyonaryo

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Andrew Tan’s Megaworld swings to positive growth, earns P13.4B profit in 2021

Megaworld Corp., the property arm of bilyonaryo Andrew Tan, returned to familiar ground with a 36 percent jump in profit last year.

In a statement, Megaworld said net earnings rose to P13.4 billion last year from P9.9 billion in 2020 as all core businesses registered double digit growth.

Consolidated revenues grew 17 percent to P50.8 billion on strong sales. Real estate sales climbed by 25 percent to P31.1 billion as construction activities picked up during the year.

Reservation sales increased by 17 percent to P80 billion,.

“There has been a huge demand for titled lots, from both our residential and commercial offerings last year. We can see this trend to continue even this year,” said Kevin L. Tan, chief strategy officer at Megaworld.

The office segment saw rental income soar to an all-time high of P11.1 billion, closing around 236,000 square meters of new and renewal transactions.

Megaworld Lifestyle Malls, on the other hand, continued to feel the pandemic’s pinch as rental income fell 10 percent to P2.3 billion amid the lockdowns imposed during the year to curb the virus.

Meanwhile, revenues from the hotel business grew 30 percent to P1.9 billion due to the consistent performance of the company’s in-city hotels and the opening of Kingsford Hotel in the company’s Westside City township within the Entertainment City.

“In 2021, we shifted gears from pandemic management to restarting our growth trajectory, and our initiatives on this front have begun to bear fruit. As our numbers have shown, all our business segments registered significant improvements, even as we continue to provide assistance to ensure the recovery of our various stakeholders,” Tan said.

SOURCE: Bilyonaryo

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Andrew Tan’s MREIT books P2B profit in first 6 months of operations

 Megaworld-backed MREIT Inc. posted a net income of P2 billion in the six months ending December last year, boosted by a fair value gain on investment properties worth P702 million.

Revenues rose five percent to P1.5 billion.

Given its robust performance, the company has approved the declaration of dividends amounting to 24 centavos per share for the fourth quarter of 2021. This brings the total dividends declared by MREIT last year to 48 centavos per share.

The dividends shall be payable on March 31 to shareholders on record as of March 18.

“We are pleased with the accomplishments of MREIT to date and are thankful for all the support that we have received from our shareholders, as evidenced by the strong performance of MREIT shares in the bourse. We aim to build on this momentum as we embark on our expanded acquisition plan this year,” said Kevin L. Tan, president and CEO of MREIT.

MREIT is looking to acquire up to P20 billion worth of office assets, which will expand its gross leasable area to around 500,000 square meters by the end of 2023 and achieve an annual total shareholder return of at least 10 percent via organic growth and new acquisitions.

“We also want to look at opportunities to expand our portfolio footprint to Megaworld’s other townships,” Tan said.

MREIT plans to eventually expand its portfolio GLA to one million sqm before the end of the decade as part of its goal to be one of the largest office REITs in Southeast Asia.

SOURCE: Bilyonaryo

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Strong occupancy and rent collection efforts lift AREIT’s 2021 net income to P2.27B

The country’s first real estate investment trust, Ayala-backed AREIT Inc. posted strong performance last year with profit growing by 56 percent to P2.27 billion.

The robust growth in AREIT’s net income was driven by a stable occupancy of 98 percent and strong rental collection efforts at 98 percent.

Revenues soared 63 percent to P3.32 billion while earnings before interest, taxes, depreciation and amortization jumped 55 percent to P2.4 billion.

AREIT’s board of directors approved the declaration of dividends of P0.47 per share for the fourth quarter of 2021 to be distributed on March 25 to stockholders on record as of March 11.

This brings the company’s full-year dividends from its 2021 income to P1.77 per share, 34 percent higher than 2020 and 12% higher than its REIT plan projection during the IPO due to asset acquisitions last year.

The company acquired Ayala Malls 30th, a 75,000 square meter commercial development located in Pasig City, and the 98,000 sqm of land at Laguna Technopark leased by Integrated Micro-Electronics.

SOURCE: Bilyonaryo

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Robinsons REIT declares cash dividends for fourth quarter 2021

Gokongwei-led RL Commercial REIT Inc. (RCR), the country’s largest real estate investment trust (REIT), has declared cash dividends amounting to P0.092 per share for the fourth quarter last year.

This brings RCR’s total dividends to P0.154 per share.

Based on RCR’s initial public offering price of P6.45 per share, this is equivalent to an annualized yield of 5.73 percent, higher than the company’s dividend yield projection of 5.57 percent for 2021, according to its REIT plan.

From its successful debut on the Philippine Stock Exchange (PSE), the stock soared to a high of P8.80 per share.

The cash dividends will be payable on February 28 to stockholders on record as of February 18.

RCR’s total dividend pay-out in 2021 is equivalent to 91.56% of its distributable income, higher than the minimum mandated level of 90 percent.

“Our declaration of quarterly dividends is a fulfillment of our commitment to investors based on our REIT plan. This dividend payout, which provides a higher yield than expected, affirms the strength of our portfolio,” said RCR president and CEO Jericho Go.

RCR’s portfolio consists of 14 high quality office buildings registered with the Philippine Economic Zone Authority. These assets are located in 9 key cities and central business districts of Makati, BGC, Ortigas, Quezon City, Mandaluyong, Naga, Tarlac, Cebu, and Davao with a total gross leasable area of 425,315 square meters.

SOURCE: Bilyonaryo

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PSE to launch dividend yield index

The Philippine Stock Exchange is launching the dividend yield index within the first half as part of efforts to attract income seeking equity investors.

The new index will track the performance of high dividend paying listed corporations.

Companies distribute a portion of their profits as dividends, while retaining the remaining portion to reinvest in the business.

Data culled by the PSE showed that the amount of cash dividends paid out by public listed companies to common shareholders reached P402.18 billion last year, up 17.3 percent from the previous year. This translated to dividend yields of 2.58 percent.

Dividend yield is the ratio of dividend per share to price per share.
The cash dividends paid by 28 of the 30 main index members amounted to P57.58 billion, giving common shareholders a 1.72 percent dividend yield. According to the PSE, 108 of 276 PLCs gave out cash dividends last year compared with 105 of the 271 in 2020.

Among the six sectors in the PSE, financials had the largest dividend payout at P187.55 billion.

“With around 40 percent of PLCs giving out dividends to their common shareholders, we deemed it necessary to showcase companies that provide high dividend income to investors by coming up with a Dividend Yield Index,” said PSE president and CEO Ramon S. Monzon.

“The gradual reopening of the local economy allowed companies to generate better income, which resulted in bigger dividends for shareholders. We hope that earnings growth among PLCs continues to improve to ensure steady dividend income for stock market investors,” Monzon added.

Real Estate Investment Trusts AREIT, Inc., DDMP REIT, Filinvest REIT Corp., RL Commercial REIT and MREIT recorded an aggregate cash dividend payout of P5.77 billion, resulting in 2.16 percent dividend yield, even as three of the five REITs were only listed for an average of four months.

“REITs have become a preferred asset class among investors because of its dividend mandate. With more REITs expected to list this year, including non-property REITs, investors will have a wider selection of companies that can provide passive income,” Monzon said.

SOURCE: Bilyonaryo

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Kevin Tan bulks up MREIT’s portfolio with the infusion of P20B worth of office assets

 The real estate investment trust (REIT) unit of township developer Megaworld will see its portfolio expand to P78.5 billion this year with the infusion of P20 billion worth of office assets.

MREIT president Kevin Tan said these properties, which will come from various Megaworld townships across the country, have a multinational tenant base which include large financial, healthcare, technology and consulting firms.

“MREIT is looking to surpass its target for 2022 in terms of asset injection…We earlier announced an additional 44,300 square meters by end of the year, but we are working to further bulk it up with more assets as we continuously look for ways to increase dividend yields for our shareholders,” said Tan.

SOURCE: Bilyonaryo

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REITs steal spotlight, pull in P76B in equity offerings in 21 months

The Philippine Stock Exchange saw a flurry of REIT (real estate investment trust) listings with around P76.4 billion raised in less than two years.

Gokongwei-led Robinsons Land Corp. pulled off 2021’s largest initial public offering at P21.56 billion. The maiden share sale of bilyonaryo Andrew Tan’s Megaworld REIT came in second with P15.29 billion followed by Injap Sia’s DD Meridian Park REIT (P14.7 billion), Filinvest REIT (P12.58 billion and Ayala Land’s AREIT (P12.28 billion).

The total size or market capitalization of these REITs amounted to $3.46 billion or 0.96 percent of the Philippines’ gross domestic product (GDP) of $362.24 billion as of the third quarter of 2021, based on the global survey conducted by the European Public Real Estate Association (EPRA).

This places the country’s less than 2-year old REIT sector in the middle of the pack among 12 selected economies in the South and East Asian regions in the EPRA Index, ahead of Taiwan, South Korea, India, Indonesia, and China, the Securities and Exchange Commission said in its report to Finance Secretary Carlos Dominguez.

The finance chief said the successful initial public offerings (IPOs) of REITs reflect a “vote of confidence in the country’s ability to tread a path towards a solid recovery despite the difficulties spawned by the unprecedented pandemic-induced health and economic crises.”

The 5 REITs that have raised funds from their IPOs and stock trading have reinvested or plan to reinvest their proceeds in malls, office towers, hotels, dormitory residences, warehouses and storage buildings, residential buildings, mixed-use developments, and industrial lots and land acquisitions, retail projects, commercial center, industrial developments and real estate joint ventures.

Of the P79.87 billion required to be reinvested by the 5 REITs, a total of P22 billion had been reinvested as of Nov. 15 by AREIT, DDMP, FilREIT, and RCR.

 SOURCE: Bilyonaryo

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Andrew Tan’s MREIT to invest in townships, logistics

The real estate investment trust (REIT) of bilyonaryo Andrew Tan’s Megaworld Corp. is diversifying its portfolio to include townships as well as industrial and logistics properties.

In its three-year growth plan submitted to securities regulators, MREIT said it was looking at investing in other real property sectors that meet its investment criteria for Grade A, centrally-located, stably occupied, and income-producing properties.

MREIT aims to deliver an annual total shareholder return of at least 10 percent through organic growth and new acquisitions.

In selecting assets for future investments, MREIT said the potential property should be located in a prime location in either Metro Manila or key provinces in the Philippines.

Acquisitions will be funded either through debt or equity or a combination of both.

The company currently carries minimal debt at 12.4 percent of deposited properties, well below the aggregate leverage limit of 35 percent which may be further increased to 70 percent for REIT companies that have a publicly disclosed investment grade credit rating by a duly accredited or internationally recognized rating agency.

MREIT’s property portfolio is currently valued at P58.5 billion with the infusion of four prime office buildings in Philippine Economic Zone Authority-registered zones. These include Two Techno Place, Three Techno Place and One Global Center, which are all located in Iloilo Business Park, and World Finance Plaza in Mckinley Hill in Fort Bonifacio.

 SOURCE: Bilyonaryo

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Ed Saavedra turns to capital market to fund RE projects: Citicore REIT’s P10B IPO gets SEC nod

A real estate investment trust (REIT) unit of Citicore Renewable Energy Corp. has been cleared to launch its initial public offering estimated to fetch as much P10 billion.

Backed by Citicore Renewable Energy Corp. and Citicore Solar Tarlac 1, Citicore Energy REIT (CREIT) will offer to the public as much as 3.206 billion shares comprising 1.047 primary shares, 1.741 billion secondary shares and an oversubscription option of up to 418.34 billion shares, at a maximum price of P3.15 each

CREIT, an affiiate of bilyonaryo Edgar Saavedra’s Megawide Corp., expects to net up to P3.17 billion from the primary offer, which will be used for the acquisition of properties in Bulacan and South Cotabato.

Proceeds from the secondary offer could amount to P6.61 billion, assuming the overallotment option is fully exercised. These funds shall be reinvested in the Philippines, pursuant to the Real Estate Investment Trust Act of 2009.

The offer period will run from November 26 to December 3 in time with the listing of the shares scheduled on December 13.

CREIT aims to focus on income-generating renewable energy real estate properties, including land and properties used for harnessing power. The company owns the Clark solar power plant operating on a land leased from the Clark Development Corp. for a period of 25 years or until 2039.

It has mandated Unicapital Inc. and BDO Capital & Investment Corp. as joint global coordinators for the offer.

Unicapital will also serve as lead underwriter and issue manager while BDO Capital will serve as lead local underwriter alongside PNB Capital and Investment Corp. while Investment & Capital Corporation of the Philippines will act as participating underwriter.

The company also engaged CIMB Investment Bank Bhd and CLSA Ltd. as international bookrunners.

SOURCE: Bilyonaryo

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Frederick Go gives Robinsons Land shareholders more reasons to hold on to shares: P3B buyback program underway

Gokongwei-led Robinsons Land Corp. has approved a share repurchase program worth P3 billion, reinforcing the company’s strong cash position despite the ongoing coronavirus crisis.

Share buybacks have become the most common way of returning cash to investors at many companies.

“The board unanimously approved the stock buyback program. The recent REIT listing of RL Commercial REIT (RCR) and its subsequent strong performance, crystalizes the value of RLC”, said Frederick D. Go, president and CEO of RLC.

RLC has a strong balance sheet with total assets of P214 billion and a low debt-to-equity ratio of just 39 percent as of June 30.

The real estate arm of the Gokongwei family raised P23.5 billion from the oversubscribed initial public offering of RCR, which would be deployed for various businesses in the next 11 months.

RLC closed 6.46 percent higher Friday at P18.80. Its market capitalization stood at P91.7 billion.

 The share buyback program will not involve any active and widespread solicitation from the stockholders and will be implemented in the open market through the trading facilities of the PSE. Moreover, the share buyback program will not affect any of the Company’s prospective and existing projects and investments.

Shares purchased under the buyback program will be booked as treasury shares of the company.

SOURCE: Bilyonaryo

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Ayala Land’s REIT preps P15B bond offer

The real estate investment trust of property giant Ayala Land Inc. is tapping the debt market with the planned issuance of P15 billion in fixed-rate bonds.

Of the P15 billion bonds, AREIT will initially sell P3 billion, proceeds of which will be used largely for refinancing.

The P3 billion bond offer was assigned the highest issue credit rating of PRS Aaa, with a stable outlook by the Philippine Rating Services Corp.

AREIT has fully deployed the P13.5 billion it raised from its initial public offering in August last year. The funds were invested in 27 projects — One Ayala Office and Malls (P3.1 billion), Ayala Triangle Garden 2 (P1.01 billion), Mandarin Oriental (P805 million), Ayala Malls Vermosa (P754 million) ALI Logistics Industrial Park (P740 million), ALI land acquisition (P700 million), Alveo land acquisition (P610 million), Glorietta and Greenbelt Refresh (P616 million), ALI Logistics Artico Binan (P377 million), Avida land acquisition (P338 million), Seda Manila Bay (P255 million), West Gallery Place (P250 million), AT Verge Tower 1 (P240 million), Trinoma common station connections (P224 million), Alveo Cavite (P220 million), The Flats Cebu I.T. Park (P163 million), East Gallery Place (P150 million), Veranda Tower 1 (P150 million), Avida Laguna development (P135 million), ALI Logistics Lepanto redevelopment (P105 million), ALI Logistics Naic 2 (P103 million), ALI Logistics Binan 4 (P86 million), The Flats Cebu Business Park (P68 million), Seda One Ayala (P40 million), The Flats Circuit (P33 million), ALI Logistics Porac expansion (P25 million) and Arca South office (P24 million).

ALI set up AREIT in line with its goal to create a new equity instrument for local investors to invest in high-value commercial real estate while enabling the group to reinvest capital in the country.

Since its IPO, AREIT has grown its gross leasable are by more than 50 percent to 344,000 square meters, equivalent to P37 billion in total value of assets under management.

SOURCE: Bilyonaryo

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