₱11B Property-For-Share Swap With ALI Approved By AREIT Stockholders
AREIT, Inc. (AREIT), the first Real Estate Investment Trust (REIT) in the Philippines, secured the approval of its stockholders on its second property-for-share swap with its sponsor, Ayala Land, Inc. (ALI) during its Annual Stockholders’ Meeting held this afternoon.
Photo Insert: Cebu Business Park
The transaction involves six Cebu-based office buildings with an aggregate value of P11,257,889,535.91, in exchange for 252,136,383 AREIT primary common shares at a price of P44.65 per share, as validated by a third-party fairness opinion.
This new asset infusion will expand AREIT’s gross leasing area to 673 thousand square meters or P64 billion in Assets Under Management (AUM) in 2022 – a 113% increase since AREIT went public. This growth exceeds its target to double in size within two years from its IPO.
AREIT's full-year dividends from its 2021 income totaled P1.77 per share, a 34% increase from 2020 and 12% higher than its REIT plan projection during the IPO. With this prospective infusion of Cebu assets, AREIT's dividend per share is projected to increase further.