By Jenniffer B. Austria
Real estate investment trust pioneer AREIT Inc. said Monday its board of directors approved the increase in the company’s authorized capital stock to P40.5 billion from P29.5 billion in preparation for future asset infusion.
AREIT said in a stock exchange filing the capital hike is in line with its thrust to grow its portfolio through asset infusion and other allowable investments under the REIT law.
The company earlier committed to further growing its asset portfolio at an average of 100,000 square meters in gross leasable area from 2023 to 2025, translating into an increase of P10 billion to P15 billion in asset under management annually.
It also aims to grow and diversify its asset portfolio by sector, location and income contribution and achieve a total shareholder return range of 10 percent to 12 percent.
AREIT said the proposed capital hike would be presented to the stockholders during the company’s annual meeting in April.
AREIT had P64 billion worth of assets with gross leasable area of 673,000 sq. m. as of end-2022.
The Securities and Exchange Commission approved in December 2022 the company’s acquisition of six office buildings from parent Ayala Land Inc. through a property-for-share swap.
AREIT reported a net income of P2.9 billion in 2022, up 19.3 percent from P2.43 billion in 2021 on the back of strong rental revenues.
Revenues grew 52 percent year-on-year to P5.1 billion as leasing occupancy remained stable at 98 percent.
AREIT’s board of directors also approved the declaration of P0.52-per-share dividends for the fourth quarter of 2022. The dividends will be distributed on March 24 to shareholders as of record date March 10.
The P0.52 per share is 6-percent higher than the previous quarter’s dividends of P0.49, following the addition of the Cebu assets in the fourth quarter.
Full-year dividends totaled P1.98 per share, a 12-percent increase from the 2021 level.