Ayalas bare three-year growth strategy for AREIT

AREIT Inc., country’s first real estate investment trust, is looking at further bolstering growth in the next three years.

Under its three-year growth strategy, AREIT aims to maintain leadership in the Philippine REIT sector in terms of asset size and market capitalization.

The company plans to continue expanding its portfolio of assets at an average of 100,000 square meters of gross leasable area annually from 2023 to 2025.

This will increase assets under AREIT’s management from P10 billion to P15 billion annually.

AREIT is also keen on growing and diversifying its asset portfolio in terms of sector, location and income contribution, funded through leverage and equity.

The company plans to pursue accretive acquisitions and to ensure borrowings are within the aggregate maximum leverage limit of 35 percent of deposited property value.

Aside from continuing to expand its portfolio of quality commercial assets, it also intends to diversify into other asset classes, such as shopping malls, given the recovery and reopening of the economy.

Apart from this, AREIT is targeting to achieve 10 to 12 percent of total shareholder return through organic growth, new acquisitions and from three to five percent rental escalations from operating assets.

“A core tenet of AREIT’s investment policy is to capitalize on properties that meet a select set of criteria designed to provide
competitive returns to its investors,” it said.

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