AREIT Inc. posted a 36-percent increase in net income to P5.8 billion in the first half from P4.3 billion a year earlier as contributions from recently acquired assets boosted the real estate investment trust’s earnings.
The company said in a disclosure on Monday that the first-half net income figure excluded the net fair value change in investment properties.
Total revenues were said to have risen 30 percent to P7.7 billion from P5.9 billion, while earnings before interest, taxes, depreciation and amortization (Ebitda) increased 34 percent to P5.8 billion from P4.4 billion.
“AREIT’s first-half results reflect the resilience of our diversified portfolio and the contribution of the high-quality assets acquired over the years,” AREIT President and CEO Alberto de Larrazabal said.
The company said the first-half results came in the wake of a 45-percent increase in comparable net income a year earlier. AREIT had attributed last year’s growth to contributions from assets infused in 2024 and a 99-percent overall occupancy rate across its properties.
For January to June this year, the company said the results reflected contributions from assets acquired in 2025 and 2026, alongside the steady performance of its existing portfolio.
Assets under management (AUM) stood at P159.4 billion as of end-June, covering offices, retail, hotels and industrial land.
On June 26, AREIT had secured approval from the Securities and Exchange Commission for a P19.5-billion property-for-share swap with Ayala Land Inc. and its wholly owned subsidiary, Summerhill Commercial Ventures Corp.
The transaction involved the issuance of 441.14 million AREIT shares in exchange for Ayala Center Cebu and Ayala Malls Feliz, with the assets contributing to AREIT’s earnings beginning April 1.
AREIT also declared a cash dividend of P0.63 per outstanding common share for the second quarter of 2026, payable on Sept. 9 to shareholders of record as of Aug. 25.
The company’s board further approved a proposed P20-billion asset infusion from Ayala Land Inc. and its subsidiaries that would add six properties to its portfolio.
The latest proposed property-for-share swap involves 462.48 million primary AREIT common shares, which will be exchanged for Glorietta 4 Mall in Makati City; Ayala Malls Capitol Central in Bacolod, Negros Occidental; Ayala Malls Circuit in Makati City; Ayala Malls Cloverleaf in Quezon City; New World Makati Hotel; and Seda Vertis North in Quezon City.
The assets have a combined transaction value of P17.33 billion, based on an exchange price of P37.48 per AREIT share, as validated by a third-party fairness opinion.
Separately, the company said its board also approved the cash acquisition of Fairmont Raffles Hotel Makati from Ayala Land subsidiary ALI Makati Hotel and Residences Inc. for P2.62 billion.
The proposed transactions are subject to shareholder and regulatory approvals and are expected to bring AREIT’s AUM to about P179 billion.
The additional assets would add nearly 350,000 square meters (sqm) of building gross leasable area (GLA), bringing AREIT’s total GLA to about 5 million sqm, consisting of 2.2 million sqm of building GLA and 2.9 million sqm of industrial land.
Following the proposed transactions, offices would account for 53 percent of AREIT’s AUM, while retail, hotels and land would comprise 33 percent, 9 percent and 5 percent, respectively. The proposed infusions are expected to increase distributable income and support dividend growth.
“The proposed infusions also represent an important step in the evolution of AREIT’s growth model,” Larrazabal said, noting that the direct and hybrid lease structures would allow the company to participate in the operating performance of the underlying assets beyond contractual rental escalations.
The board also approved the creation of a chief operating officer position, with Eduardo Javier Carballo appointed to the role effective September 2026.
Carballo has more than 25 years of experience in debt capital markets, treasury strategy and large-scale financing across Asia-Pacific, the United States, Europe and emerging markets.
Before joining AREIT, he was managing director and head of debt capital markets for Southeast Asia and India at Crédit Agricole Corporate and Investment Bank in Singapore.
AREIT shares were down P0.05. or 0.13 percent, to close at P37.70 each on Monday.
