AREIT earnings jump 59% in Q1

MANILA, Philippines —  AREIT Inc. (AREIT), the real estate investment trust (REIT) of Ayala Corp. reported a net income of P796 million in the first quarter, up  59 percent from the same period last year.

In a statement, AREIT Inc. said this was driven by higher revenues from stable operations and the contribution of assets acquired in 2021.

Total revenues jumped by 66 percent to P1.2 billion, while earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 58 percent to P843 million.

The company was able to rake in robust revenues after recording an average occupancy of 97 percent  and a rental collection rate of 98 percent, reflecting stable and high-quality tenancy across its properties.

During its annual stockholders’ meeting held on April 21,  AREIT secured the approval of its stockholders for its second property-for-share swap with sponsor Ayala Land Inc. (ALI).

The transaction involves six Cebu-based office buildings valued at P11.3 billion  in exchange for 252.2 million AREIT common shares at a swap price of P44.65 per share, as validated by a third-party fairness opinion.

“This transaction will expand AREIT’s gross leasable area to 673,000  square meters or P64 billion in assets under management (AUM) in 2022 – a 113 percent increase since the company went public, exceeding its target to double in size within two years from its IPO,” AREIT said.