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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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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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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Ayala-backed REIT taps debt market to fund acquisitions

The country’s first real estate investment trust, AREIT Inc. secured the greenlight from the Securities and Exchange Commission to proceed with the issuance of P15 billion in fixed-rate bonds.

AREIT, which is sponsored by property giant Ayala Land Inc., will initially sell P3 billion worth of three-year bonds at face value.

The offer will run from December 13 to 16 in time for the bonds’ listing at the Philippine Dealing & Exchange Corp. on December 23.

This marks AREIT’s first foray into the debt market.

Net proceeds will be used to refinance debt and partly fund the acquisition of The 30th, a mixed-use development in Pasig City.

AREIT plans to issue the bonds in one or more tranches within a period of three years.

BPI Capital Corp. and BDO Capital & Investment Corp. are the joint lead underwriters and bookrunners for the issue.

The acquisition of new assets is expected to boost AREIT’s net income and dividends.

Cityland, meanwhile, will offer to the public P500 million worth of commercial papers. The listed real estate company expects to net up to P495,688,725 from the offer, for project-related costs, payment of maturing loans or notes, and interest expense.

Among others, the proceeds from the offering will be used to partially finance the construction of One Premiere, a 27-storey commercial and residential condominium in Las Pinas City.

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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Higher dividends await AREIT shareholders as SEC OKs ALI’s P15.5B asset infusion

The Securities and Exchange has approved the P15.46 billion share-for-asset between AREIT Inc. and its sponsor Ayala Land Inc. (ALI).

In a regulatory filing, AREIT said the subscription by ALI and its subsidiaries Westview Commercial Ventures Cop. and Glensworth Development to 483.25 million shares of AREIT in exchange for certain properties had been cleared by the SEC.

Among these properties include Vertis North with leasable area of 125,507.39 square meters, Evotech Buildings 1 and 2 ( 23,723 sqm of leasable office space), Bacolod Capitol Corporate Center (11,313 sqm), Ayala Northpoint Technohub (4,653.5 sqm), and office condominium units at BPI-Philam Life Buildings in Makati and Alabang (1,623 sqm).

Following the completion of the transaction, ALI’s ownership in AREIT will go up from 50.1 percent to 66 percent. AREIT’s gross leasable area will be 549,000 sqm and its total market capitalization will jump more than two-fold to P60 billion from P27 billion during its initial public offering last year.

“The infusion of the commercial assets is part of ALI’s commitment as AREIT’s sponsor to support AREIT’s growth plans of building a larger and more diversified portfolio,” said the property giant.

AREIT said the assets are expected to contribute significantly to earnings in succeeding periods, thereby increasing the potential dividend per share for it’d shareholders.

The recognition of income from the new assets will accrue to AREIT beginning Oct. 1 instead of Nov. 1.

Last September, AREIT declared third quarter dividends amounting to 44 centavos per share to stockholders of record as of Oct. 6.

SOURCE: Bilyonaryo

 

 

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Ayalas’ AREIT included in FTSE EPRA NAREIT index

AREIT Inc. (AREIT), the pioneering real estate investment trust sponsored by property giant Ayala Land Inc., has been added to the FTSE EPRA NAREIT Asia ex Japan REITs 10% capped index.

It is the first Philippine REIT to be included in this index, which has a net market capitalization of $55.43 million.

The index is composed of 28 constituents generating an average dividend yield of 5% as of August 31.

It includes various REITs in Asia ex Japan engaged in data centers, diversified portfolio, healthcare, industrial, industrial and office-mixed, lodging or resorts, office, residential, and retail.

The index is part of the FTSE EPRA Nareit Global Real Estate Index Series which incorporates REITs and real estate holding and development companies covering global, developed and emerging indexes, as well as the UK’s alternative investment market.

Apart from this, AREIT was awarded Most Outstanding IPO in the Philippines, according to Asiamoney 2021 Asia’s Outstanding Companies Poll

 Over 5,787 votes were received for publicly-listed companies across 13 markets in Asia.

The poll is conducted annually and is designed to acknowledge listed companies that have excelled in areas such as financial performance, management team excellence, IR activities and CSR initiatives.

 SOURCE: Bilyonaryo

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REIT dividend yield to continue luring investors

HAVING an attractive dividend yield will continue to lure investors to real estate investment trust (REIT) listings despite cautious sentiment amid uncertainty brought by the coronavirus disease 2019 (COVID-19) pandemic, analysts said.

MREIT, Inc., the REIT sponsored by Megaworld Corp., said its final offer will comprise 844.30 million common shares and an overallotment option of up to 105.54 million shares. This is down from its initial plan to offer 1.08 billion shares with an overallotment of up to 161.7 million shares.

“The reduction of offer shares tells us that the demand for these office leasing REITs may have started to decline. The last four REIT listings that happened over the span of 12 months [have] given the market all the exposure that it wants in this sector,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in a text message on Friday.

Ayala-led AREIT, Inc. is the Philippine Stock Exchange’s (PSE) first REIT listing, which made its market debut in August last year. DoubleDragon Properties Corp.’s DDMPR, Inc. led this year’s offers in March, followed by Filinvest Land, Inc.’s Filinvest REIT Corp. last month.

Meanwhile, the REIT unit sponsored by Robinsons Land Corp., RL Commercial REIT, Inc., is slated to list on the PSE on Tuesday, Sept. 14.

“Investors may want to see how [MREIT] performs in the next few quarters before increasing their positions in this area, since the assets between the REITs are similar and do not have any major advantages against the other,” Mr. Mangun said.

Meanwhile, MREIT also set its final initial public offering (IPO) price to P16.10 apiece, 27% lower than the P22 each maximum offer price it set on its prospectus.

“Given the current state of the economy as well as the uncertainty over how the COVID-19 pandemic will unfold in the coming months, the IPO’s final offer price may encourage more investors to participate in the offer given the higher dividend yield,” Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a Viber message on Saturday.

MREIT President Kevin Andrew L. Tan said in an e-mailed statement on Friday that its IPO was priced “to provide more upside to IPO investors,” who were dubbed as the company’s “long-term partners.”

Its projected dividend yield is at 5.65% for 2022 and is said to be around 6.1% for 2023. 

“Recall that this may potentially be higher according to MREIT’s management as occupancy as of August was already at 100%,” Papa Securities Corp. Equities Strategist Manny P. Cruz said in a text message on Friday.

“Our view is that the offering is attractive given the yield that is slightly higher than AREIT [at] 5.4%,” he added.

Timson Securities’ Mr. Pangan said MREIT currently offers “much more attractive yields,” while AAA Southeast Equities’ Mr. Mangun said it may “potentially become the highest-paying REIT on the PSE.”

“However, these projections are solely based on their prospectus as no earnings reports for fiscal year 2022, which just started last July 1, 2021, have been reported,” Mr. Mangun added.

MREIT may raise up to P15.29 billion in proceeds, should the overallotment option be exercised. This will be used to fund the development of 21 Megaworld projects across 11 of its townships in the country within the next 12 months. This includes 15 office developments, five lifestyle malls, and one hotel.

“[Megaworld] will be receiving more proceeds once it completes the impending cash injection of three buildings into MREIT, which is slated to be completed by early 2022,” Mr. Tan said.

MREIT was said to have attracted strong demand from institutional investors both here and abroad.

“At the current issue size, the institutional tranche was close to two times oversubscribed, which bodes well for aftermarket performance,” MREIT’s Mr. Tan said. 

“Local demand [is] expected to build up further as retail [investors are] waiting for final price,” BDO Capital & Investment Corp. President Eduardo V. Francisco said in a text message on Friday.

Post-IPO, Megaworld will have a 62.5% stake “to capture more near-term and long-term valuation upsides” as its REIT unit continues to grow along with the country’s REIT industry.

“MREIT expects both its market cap and float to grow over time as it successfully executes on its aggressive growth trajectory,” Mr. Tan said.

SOURCE: BusinessWorld

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