AREIT, Inc. is planning to grow its assets at an average of 100,000 square meters (sq.m.) of gross leasable area annually from 2023 to 2025, the company said on Tuesday.
In its three-year investment strategy, AREIT said that the target will increase its assets under management by P10 billion to P15 billion yearly.
Previously, AREIT set a growth target of P60-billion assets under management two years after its maiden listing at the Philippine Stock Exchange on Aug. 13, 2020, from an initial P30 billion.
To date, these assets reached P54 billion and are projected to reach P64 billion upon the infusion of Ayala Land, Inc.’s Cebu assets. The transfer of the assets in Cebu will be through a property-for-shares swap and will increase AREIT’s portfolio to 673,000 sq.m. The swap will increase Ayala Land’s stake in AREIT by 5.65 basis points to 66.23%.
Meanwhile, the company said that it would diversify into other asset classes including shopping malls as it bets on the recovery and reopening of the economy.
Also, among its three-year objectives is to achieve a 10% to 12% total shareholder return through organic growth and new acquisitions.
“Targeted total shareholder returns of at least 10% will be achieved from 3% to 5% rental escalations from operating assets and additional dividends generated from new assets to be acquired from 2023 to 2025,” the company said in a disclosure.
At present, the company’s portfolio has 13 commercial properties, namely: Solaris One, Ayala North Exchange, McKinley Exchange, Teleperformance Cebu, the 30th Commercial Development, Laguna Technopark Property, Vertis North Commercial Development, BPI-Philam Life Makati, BPI-Philam Life Alabang, Bacolod Capitol Corporate Center, Ayala Northpoint Technohub, One Evotech and Two Evotech.
AREIT is the real estate investment trust of its sponsor, Ayala Land, which maintains a 60.58% stake in the company.
On the stock exchange on Monday, shares in AREIT added P2.70 or 8.06% to P36.20 apiece. — Justine Irish D. Tabile