AREIT Inc. is expanding its acquisition strategy beyond its sponsor, Ayala Land Inc., while maintaining a steady annual investment pipeline of P15 billion to P20 billion as it looks to sustain long-term growth and income stability.
Speaking during the company’s annual stockholders’ meeting on Thursday, AREIT President and CEO Alberto de Larrazabal said the real estate investment trust (REIT) was actively evaluating opportunities from both Ayala Land and third-party sources.
“We continue to guide toward a base case of around P15 to P20 billion in asset infusions annually. We are evaluating select third-party opportunities at various stages and remain open to revisiting assets as conditions evolve,” he said.
De Larrazabal added that Ayala Land continued to provide a strong pipeline with only a portion of its office, mall and hotel assets infused into AREIT, ensuring visibility for future growth over the next few years.
The REIT recently announced its sixth asset infusion from its sponsor, involving Ayala Center Cebu and Ayala Malls Feliz, with a combined value of P19.5 billion. The transaction remains subject to regulatory clearances.
Once completed, the infusion is expected to bring AREIT’s assets under management to about P159 billion.
Alongside its expansion plans, AREIT reported strong financial and operating results for 2025, underscoring the resilience of its portfolio.
Net income rose 28 percent to P9.4 billion while revenues increased 26 percent to P13 billion, driven by stable lease income from prime assets and long-term tenant relationships.
Portfolio occupancy remained high at 99 percent with office occupancy at 96 percent, both above industry benchmarks. Leasing activity also stayed robust, with 88 percent of expiring leases in 2025 successfully renewed.
For 2026, leasing momentum remains steady with about 78 percent of expiring leases already renewed or replaced, de Larrazabal said.
Shareholder returns rose with total cash dividends reaching P8.4 billion in 2025, equivalent to P2.41 per share and up 31 percent from the previous year.
The company maintained a conservative balance sheet, with net debt at P1.9 billion and low leverage levels, allowing flexibility for future acquisitions while supporting consistent dividend payouts.
Looking ahead, AREIT said it would continue to prioritize stable income streams, disciplined capital management and selective acquisitions as it navigates evolving market conditions.
The company’s shares slipped P0.05, or 0.12 percent, to close at P39.95 each on Thursday.
NAZYLEN JOY MABANGLO
