Investment Details
Investor Type
Institutional Investor
Asset Class Focus
Real Estate
Stage Focus
Growth
Geographical Focus
Philippines
Industries Focus
- Real Estate
- Finance
Investor Details Founded: 2020
AREIT, Inc. is the first Real Estate Investment Trust (REIT) in the Philippines, established in 2020. The company specializes in owning and investing in a diverse portfolio of income-generating commercial properties, including office, retail, and hotel spaces. AREIT aims to provide stable returns and long-term growth to its investors by focusing on high-quality properties with strong tenant demand.
The company's investment strategy emphasizes acquiring properties that meet specific criteria, such as high occupancy rates and long-term contracted leases with escalation clauses. AREIT is particularly focused on office properties associated with business process outsourcing, primarily in Metro Manila and Cebu. This strategic focus allows the company to tap into the growing demand for office spaces in these regions.
As of December 31, 2024, AREIT's gross leasable area (GLA) stands at 3.9 million square meters, with assets under management valued at P117 billion, making it the largest and most diversified REIT in the Philippines. The company was publicly listed on the Philippine Stock Exchange on August 13, 2020, and as of December 31, 2024, 38% of the company is publicly held, while the remainder is owned by its sponsor, Ayala Land, Inc. AREIT offers an investment opportunity with a stable yield, distributing at least 90% of its distributable income from high-quality properties with strong tenant demand.
Supported by Ayala Land and managed by experienced fund and property management companies, AREIT Fund Managers, Inc. (AFMI) and AREIT Property Managers, Inc. (APMI), respectively, the company is well-positioned for revenue and net operating income growth. In February 2024, AREIT received EDGE Zero Carbon Certification for eight office buildings, comprising 354,000 square meters, making it the largest EDGE Zero Carbon certified portfolio in the Philippines. This commitment to sustainability underscores AREIT's dedication to developing environmentally conscious properties for a sustainable future.
In summary, AREIT, Inc. is a pioneering REIT in the Philippines, focusing on income-generating commercial properties with a strategic emphasis on office spaces linked to business process outsourcing. Its strong portfolio, commitment to sustainability, and backing by Ayala Land position it as a significant player in the Philippine real estate investment sector.
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