Ayala Land Inc. is infusing P15.46 billion worth of property into listed real estate investment trust AREIT Inc.
In exchange, the company will be issued 483.25 million AREIT shares under the property-for-share swap at a transaction price of P32 per AREIT share. Prior to the disclosure of the transaction Tuesday, AREIT shares traded for P31.75 per share. It closed Tuesday at P32.50.
Pre-transaction, Ayala Land has 41.61 percent stake in AREIT.
AREIT said the swap price was validated by a third party.
“Both items are subject to the approval of AREIT shareholders at their annual meeting on April 23, 2021 and pertinent regulatory bodies,” AREIT said.
The transaction will increase AREIT’s leasing portfolio from 344 to 549 thousand square meters and deposited property value from P37 billion to P52 billion.
AREIT closed 2020 with profit of P1.23 billion, up 42 percent from P866 million the year before. Revenues rose 3 percent to P1.95 billion from the prior year’s P1.89 billion, while earnings before interest, tax, depreciation and amortization grew 4 percent to P1.58 billion.
Ayala Land posted profits of P8.7 billion last year, down 74 percent from P33.2 billion the prior year. Revenues fell 43 percent to P96.3 billion from P168.8 billion in 2019.