THE new assets of the company’s first real estate investment trust (REIT), AREIT, Inc., got from the property-for-share swap with sponsor company Ayala Land, Inc. (ALI) are expected to contribute to AREIT’s income beginning fourth quarter this year.
AREIT said both companies amended the deed of exchange on Oct. 7 so that the income from the new assets may be recognized beginning Oct. 1, instead of Nov. 1.
“The new assets are expected to contribute significantly to earnings in the succeeding periods, thereby increasing the potential dividend per share for AREIT shareholders,” AREIT said in a statement on Monday.
AREIT received the go signal from the Securities and Exchange Commission (SEC) on Oct. 8 for the subscription of ALI and its subsidiaries, namely Westview Commercial Ventures Corp. and Glensworth Development, Inc., to 483,254,375 AREIT shares.
This is in exchange for identified commercial properties valued at P15.46 billion.
The Ayala-led REIT unit declared its third-quarter dividends earlier than usual last Sept. 22 at 44 centavos per share for stockholders as of Oct. 6 “to provide shareholders with an equitable share in the company’s performance for the whole third quarter, prior to the increase in its common shares in exchange for the new assets.”
AREIT also received approval from the SEC to increase the number of its directors to eight from seven, marking effective the election of Mariana Zobel de Ayala as a member as a member of AREIT’s board of directors.
“The SEC likewise approved the amendment of various sections of the By-Laws to align with the Revised Corporation Code and recognized good corporate governance practices, and to digitalize certain governance processes,” AREIT said.
The regulator also approved the increase of the company’s authorized capital stock to P29.5 billion from P11.74 billion.
The company’s outstanding common shares went up to 1,508,910,810 from 1,025,656,435. ALI owns 66% of the total shares, while the company remains compliant with the prescribed minimum public ownership requirements.
“The company will apply for the issuance of the Certificate Authorizing Registration for the new assets from the Bureau of Internal Revenue and the listing of the shares in favor of ALI and the subsidiaries within the year,” AREIT said.
The transaction bumps AREIT’s gross leasable area to 549,000 square meters (sq.m.) from 344,000 sq.m.
“At the closing price of P39.80 on Oct. 8, the company’s total market capitalization is P60 billion from P27 billion during its IPO (initial public offering) last year,” AREIT said.
AREIT shares at the stock exchange closed higher by 0.50% or 20 centavos on Monday to finish at P40 apiece, while ALI stocks rose 6.35% or P2.15 to close at P36 each. — Keren Concepcion G. Valmonte