In a detailed disclosure on Wednesday, AREIT said the high-yield assets have a 6.53 percent capitalization rate, exceeding AREIT’s current 5.6 percent dividend yield.
This means the new properties generate a higher return relative to their value, making the deal immediately value-enhancing by increasing cash flow per share and strengthening future dividends.
The property-for-share swap, priced at P41.50 per share, brings in eight prime assets across Cebu, Davao, and Cagayan de Oro: Central Bloc One and Two (offices), Ayala Malls Central Bloc, Seda Hotel Central Bloc, Ayala Malls Abreeza, Abreeza Corporate Center (office), Ayala Malls Centrio, and Centrio Corporate Center (office).
These assets are expected to deliver steady long-term growth, with office properties projected to grow 3 percent annually and malls and hotels by 2.5 percent, the filing showed.
The infusion raises AREIT’s assets under management to P138 billion and expands its gross leasable area to 4.2 million square meters, covering commercial and industrial properties.
