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Aug 13, 2021

AREIT marks 1st year since IPO, declares cash dividends; sets carbon neutrality by end 2021 and net zero emission of current buildings in 2022

AREIT Inc. (AREIT) marks its first anniversary since it debuted on the Philippine Stock Exchange as the pioneer Real Estate Investment Trust (REIT) in the Philippines. From an IPO price of P27.00, it reached a 52-week high of P37.00. AREIT’s share price has grown by 34.8% since it listed last year, backed by strong local and retail investor demand.

Delivering on its commitment to its shareholders, AREIT has declared dividends on a quarterly basis since its listing. For 2020, it declared a total of P1.32 per share, slightly higher than its REIT plan projection. Last May, AREIT declared dividends of P0.42 per share for the first quarter of 2021. Yesterday, its Board of Directors approved the declaration of dividends amounting to P0.44 per share for the second quarter of 2021, bringing the total dividends to P0.86 per share year-to-date. The cash dividends will be payable on September 10, 2021 to stockholders of common shares as of August 26, 2021. Factoring the share price appreciation and the dividends paid, AREIT has provided investors with a total return of 12.6% as of end 2020, and 41.3% year-to-date.

“We are grateful to our regulators for paving the way for REITs in the Philippines. It has been a meaningful journey for AREIT as we have taken bold steps to introduce a new equity instrument into the market and educate local investors. We are glad to have demonstrated through AREIT the benefits of investing in REITs and its contribution to fueling real estate development.” - Carol T. Mills, President and CEO.

Ayala Land, Inc.’s (ALI’s) foray into REITs last year reflects its confidence in the local economy despite the ongoing pandemic. AREIT is the result of ALI’s long-standing desire to create a new equity instrument for local investors to invest in high-value commercial real estate while enabling the company to reinvest capital in the country.

Following the release of the revised Implementing Rules and Regulations of Republic Act (RA) No. 9856, or the Real Estate Investment Trust Act of 2009 last January 20, 2020, Ayala Land filed its application for a REIT offering to the Securities and Exchange Commission in February 2020. It initially seeded AREIT with three Grade A office assets located in the Makati CBD: Ayala North Exchange, McKinley Exchange and Solaris One. In September 2020, AREIT acquired the Teleperformance building in Cebu and last January 2021, it acquired two additional assets, specifically the industrial lots at Laguna Technopark and The 30th in Pasig. Since its IPO, AREIT has grown its GLA by more than 50% to 344 thousand square meters (sq.m), equivalent to P37 billion in total value of Assets under Management (AUM).

Last June, AREIT and ALI and its subsidiaries, Westview Commercial Ventures Corp. (WCVC) and Glensworth Development, Inc. (GDI), executed the Deed of Exchange on a property-for-share swap transaction for P15.5 billion worth of commercial assets. From a gross leasable area (GLA) of 152 thousand sq.m when it started, it is slated to grow more than 70% to 549 thousand sq.m. This will bring the value of AREIT’s AUM to P52 billion. The property swap transaction is expected to be completed within the second half of the year.

Earlier this year, AREIT released its maiden Integrated Report which was prepared in accordance with the International Integrated Reporting framework developed by the International Integrated Reporting Council (IIRC). The report follows sustainability indicators set by the Global Reporting Initiative (GRI) Standards, Sustainability Accounting Standards Board (SASB), and Task Force on Climate-related Financial Disclosures (TCFD). It has outlined measures to ensure safety of its properties and personnel amidst the pandemic, as well as high standards of Environmental, Social and Governance (ESG) practices for all stakeholders. AREIT endeavors to deliver site resilience, pedestrian mobility and connectivity, resource efficiency and local economic development through its commercial properties. AREIT is on-track to achieve carbon neutrality by yearend and targets net zero emission by end 2022 for its current buildings, contributing to Ayala Land’s carbon neutrality in the same year.

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