AREIT, Inc. announced on Tuesday that its net income surged by 43% to P4.93 billion in 2023, driven by increased occupancy rates and asset acquisitions.

The company’s revenue increased by 41% to P7.14 billion, while earnings before interest, taxes, depreciation, and amortization rose by 39% to P5.04 billion, the company said in a regulatory filing.

AREIT properties logged a 97% average occupancy at the end of 2023.

The company said its financial performance last year was carried by the acquisition of One Ayala Avenue East and West Towers at the corner of Ayala Avenue and EDSA, Glorietta 1 and 2 Mall and business process outsourcing buildings at Ayala Center, and MarQuee Mall in Angeles, Pampanga.

“Our growth initiatives will benefit AREIT — profoundly enlarging the portfolio further, diversifying the assets, reducing concentration risk, and most importantly, providing our shareholder’s dividend accretion,” AREIT President and Chief Executive Officer Carol T. Mills said.

“This is a testament that AREIT, led by its sponsor Ayala Land, Inc., is an integral vehicle for capital recycling and growth, and we remain steadfast in attaining our vision of being the leading and most diversified Philippine REIT,” she added.

On Feb. 12, AREIT shareholders approved the property-for-share swap transaction with Ayala Land, Inc. and its subsidiaries Greenhaven Property Ventures, Inc. and Cebu Insular Hotel Co., Inc. involving Ayala Triangle Tower Two, Greenbelt Mall 3 and 5, Holiday Inn & Suites Makati, and SEDA Ayala Center Cebu valued at P21.8 billion, and the 276-hectare industrial land in Zambales owned by Buendia Christiana Holdings Corp. (BCHC), a wholly owned subsidiary of ACEN Corp., worth P6.8 billion.

The company also completed its acquisition of SEDA Lio in El Nido, Palawan, from Econorth Resort Ventures, Inc. for P1.19 billion on Jan. 17.

According to AREIT, the planned property infusions would bring its assets under management to P117 billion.

“This is in line with AREIT’s objectives to significantly expand and diversify its portfolio to capitalize on various growth opportunities across the real estate sector,” the company said.

“AREIT will execute the deed of exchange with ALI, its subsidiaries, and BCHC and apply for its approval with the SEC by March 2024. The new shares will be issued, and the income from the assets shall accrue to AREIT upon approval,” it added.

The company’s board also approved on Tuesday the declaration of cash dividends of 55 centavos per outstanding common share for the 4th quarter of 2023. The dividends are payable on March 20 to shareholders on record as of March 4.

“This latest quarterly dividend brings AREIT’s annual dividend-per-share to P2.15 for 2023, an 8.6% increase from P1.98 per share in 2022 nearly double the company’s first quarterly payout of 28 centavos per share when it listed in 2020,” it said.

On Tuesday, AREIT shares rose by 0.29% or 10 centavos to P34 apiece. — Revin Mikhael D. Ochave