Slide 1: 9M 2024 Investor Presentation
9M 2024 Investor Presentation November 2024
Slide 2: Contents
Contents 9M 2024 Results • Highlights • Operating and Financial Performance • Dividends 2024 Asset Infusion Growth Plans AREIT, Inc. | Investor Presentation 2
Slide 3: 9M 2024 Key Messages
9M 2024 Key Messages 1 Consistent growth • Revenues of P7.1B (+42%); EBITDA of P5.1B (+45%) from stable operations • Net income of P5.0B (+46%), excluding net fair value change and acquisitions • Overall occupancy of 99%; WALE of 21 years (4.0 years for offices) 2 • Low net gearing at 0.03:1 with ne
Slide 4: 9M 2024 Highlights
9M 2024 Highlights TOTAL REVENUES1 EBITDA1 NET INCOME2 P7.1B +42% P5.1B +45% P5.0B +46% OCCUPANCY NET DEBT AUM (Assets under 99% P2.9B Management) Borrowing Cost of 6.1% 5.42% of Deposited Property Value P117.6B GLA NET GEARING DPS 3.9M sqm +324% 0.03:1 P1.12 Building 1.0M sqm +26% Q2 P0.56 double s
Slide 5: 9M 2024 Financials (Fair Value Model)
9M 2024 Financials (Fair Value Model) Revenues of P7.1B (+42%) and Net Income of P5.0B* (+46%) • Higher Revenues and EBITDA Income Statement 9M 2024 9M 2023 Change % driven by the new assets (In Php millions) acquired in July 2024, (Ayala Total Revenues 7,122 5,003 2,118 42% Triangle Tower 2, Holida
Slide 6: Quarterly P&L Highlights
Quarterly P&L Highlights Stable quarter-on-quarter performance Revenue EBITDA NIAT 2,888 2,112 2,122 2,109 2,069 1,510 1,468 1,521 1,479 Q1 2024 Q2 2024 Q3 2024 NIAT excludes the net fair value change in investment properties 6
Slide 7: Higher occupancy than industry; healthy WALE
Higher occupancy than industry; healthy WALE Asset Type GLA (in sqm) Occupancy WALE Years Occupancy Rate: 99% +3% vs 1H2024 Offices 639,786 (16%) 94% Offices 4.0 Hotel 83,511 (2%) 100% • Despite hybrid work, occupancy Overall 21.0 remains high Retail 311,252 (8%) 99% Industrial lots 3,891,863 (73%)
Slide 8: Healthy balance sheet with a net gearing of 0.03:1
Healthy balance sheet with a net gearing of 0.03:1 • Total Borrowings and Deferred Balance Sheet September December Payments are 5.42% of the (in Php Millions) 2024 2023 Deposited Property Value, well within the 35% aggregate Cash & Receivables 4,574 4,264 leverage limit Total Assets 123,720 93,272
Slide 9: Declaration of 3Q 2024 Cash Dividends
Declaration of 3Q 2024 Cash Dividends • P0.58 per share for 3,209,865,985 outstanding common shares • Cash dividends will be paid on December 13, 2024, to stockholders of common shares as of the record date November 27, 2024. 9
Slide 10: Leading ESG practices
Leading ESG practices SHIFT TO RENEWABLE ENERGY EDGE ZERO CERTIFICATION 100% Renewal Energy by 2024 The largest EDGE Zero Carbon office portfolio in the Philippines with 345K sqm 91% • 746K sqm GLA 45% of AREIT office properties • 25 office/malls • 8 Buildings: Solaris, Glorietta 1 & 2 BPOs, McKinle
Slide 11: Contents
Contents 9M 2024 Results • Highlights • Operating and Financial Performance • Dividends 2024 Asset Infusion Growth Plans AREIT, Inc. | Investor Presentation 11
Slide 12: 2024 infusions bring AREIT's AUM to P117B
2024 infusions bring AREIT's AUM to P117B ATG Tower 2 Greenbelt 3 & 5 Holiday Inn Seda AC Cebu Seda Lio Zambales Land GLA (in sqm) 63,150 93,732 26,218 13,759 17,680 2,759,135 2024 Occupancy 98% 100% 100% 100% 100% 100% 2024 WALE (in years) 7.4 25 years 25 years 25 years 25 years 25 years Valuation
Slide 13: Makati Crown Jewels: ATG Tower 2, Greenbelt 3 & 5, and Holiday Inn
Makati Crown Jewels: ATG Tower 2, Greenbelt 3 & 5, and Holiday Inn AREIT Properties line Ayala Avenue in Makati CBD Triple A Office, 39-storeys ATG Tower 2 LEED Gold, Pre-Certified WELL Ayala N. BPI-Philam Exchange Life Makati 1 Major locators: AC, ACEN, BPI, ATG T2 White & Case, Mitsubishi, Netflix
Slide 14: Seda Ayala Center Cebu and Seda Lio in El Nido
Seda Ayala Center Cebu and Seda Lio in El Nido Seda Ayala Center, Cebu Business Park Seda Lio in El Nido • 301-room businessman's hotel centrally located • 153-room resort hotel nestled within Ayala Land’s beside the Ayala Mall in Ayala Center Cebu Lio Tourism Estate in El Nido, Palawan • Acquired J
Slide 15: 276-Hectare Industrial Land in Zambales
276-Hectare Industrial Land in Zambales 25-year guaranteed fixed lease +1.5% p.a. escalation with GigaAce8 for Solar power operations SITE MAP Zambales Industrial Land (276 hectares) • Land valuation of P6.77B at 6.92% cap rate based on DCF of guaranteed income stream • 1.5% annual escalation • 25-y
Slide 16: Diversify the portfolio mix further to reduce sector risk
Diversify the portfolio mix further to reduce sector risk IPO portfolio Solaris One Ayala N. Exchange McKinley Exchange Teleperformance Cebu The 30th Lots in Laguna Technopark Vertis North One Evotech Two Evotech Makati Makati Makati Cebu Biz. Park Pasig Laguna Quezon City Laguna Laguna Ayala Northp
Slide 17: Diversified portfolio of high-quality commercial buildings and industrial land
Diversified portfolio of high-quality commercial buildings and industrial land AUM Breakdown by Sector Industrial Industrial Hotel Land Land 3% 1% Hotel 7% Improved portfolio sector diversification Retail 6% 8% • Office exposure by AUM decreases to 76% Retail 11% • Retail exposure by AUM increases t
Slide 18: Yield accretive transactions cement AREIT's position as largest Philippine REIT
Yield accretive transactions cement AREIT’s position as largest and most diversified Philippine REIT 1 2 3 Enlarged and Improved Portfolio Enhanced Diversification and Stability Yield Accretive(1) • 34% increase in AUM • Increases diversification of building asset • Effective 7.1% cap rate(2) mix (6
Slide 19: Consistent DPS accretion from asset infusions; No dilution
Consistent DPS accretion from asset infusions; No dilution 4th Asset- 3rd Asset- Cash for-share for-share acquisition swap 2nd Asset- swap AREIT quarterly DPS in PhP for-share 1st Asset- swap 0.58 for-share 0.55 0.55 0.56 0.56 swap 0.52 0.53 0.52 Cash acquisition 0.49 0.49 0.47 0.48 0.44 0.44 0.42 0
Slide 20: Contents
Contents 9M 2024 Results • Highlights • Operating and Financial Performance • Dividends 2024 Asset Infusion Growth Plans AREIT, Inc. | Investor Presentation 20
Slide 21: AREIT aims to maintain market leadership by enlarging its AUM
AREIT aims to maintain market leadership by enlarging its AUM to a size at par with major regional REITs, grow and diversify its portfolio, and achieve a 10-12% total shareholder return 21
Slide 22: Continuing AREIT's Growth Story
Continuing Enlarge AREIT Assets Under Management (AUM) to ~US$3B AREIT's Growth Story Diversify mix of offices, malls, hotels, industrials to reduce sector risks Capitalize on flagship commercial assets from ALI as Sponsor Dividend Accretion in all asset acquisitions 22
Slide 23: Enlarge AREIT's AUM to US$3 billion
Enlarge AREIT’s AUM to US$3 billion US$3B 117 87 89 72 64 60 53 30 2020 2021 2022 2023 2024 2027 Actual Forecast 23
Slide 24: Capitalize on flagship commercial assets from ALI as Sponsor
Capitalize on flagship commercial assets from ALI as Sponsor 24
Slide 25: AREIT -- the first, leading and most-diversified Philippine REIT
AREIT -- the first, leading and most-diversified Philippine REIT AYALA’s Philippines Small Cap Index STRENGTH AS EPRA NAREIT ex-Japan Index SPONSOR Small Cap Index Micro Cap Index PRIME EXPERIENCED, Property Index LOCATIONS Mid Cap Index PROFESSIONAL AND ASSET Dividend Yield MANAGEMENT QUALITY Best