AREIT, Inc. (AREIT), the first Philippine Real Estate Investment Trust, posted a net income of P2.43 billion last year, inclusive of a net fair value change in investment properties of P165 million.
Excluding the net fair value change in investment properties, net income registered at P2.27 billion, 56 percent higher than the net income before the net change in fair value, and a one-time deferred tax of P1.45 billion, in 2020.
In a disclosure to the Philippine Stock Exchange, AREIT said it recorded revenues of P3.32 billion and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of P2.40 billion in 2021, 63 percent and 55 percent higher year-on-year, respectively.
The firm said this is the result of stable operations with a 98 percent occupancy and 98 percent rental collection rate.
Last February 24, 2022, AREIT’s Board of Directors approved the declaration of dividends of P0.47 per share for the fourth quarter of 2021 to be distributed on March 25, 2022, to stockholders on record as of March 11, 2022.
The company’s full-year dividends from its 2021 income totaled P1.77 per share, a 34 percent increase from 2020 and 12 percent higher than its REIT plan projection during the IPO due to asset acquisitions last year.
In 2021, AREIT purchased The 30th, a 75,000 square meter commercial development located in Pasig City, and 98,000 sqm of land at Laguna Technopark leased by Integrated Micro-Electronics, Inc.
It also secured the Securities and Exchange Commission’s (SEC) approval for a property-for-share swap with Ayala Land, Inc. (ALI) and its subsidiaries, Westview Commercial Ventures Corp. and Glensworth Development, Inc., in exchange for properties such as Vertis North Office Towers and Mall, Ayala Life FGU Office Condo Units in Makati and Alabang, One and Two Evotech BPO Buildings in Nuvali, and Bacolod Capitol, and Ayala Northpoint BPO Buildings in Negros Occidental.
The recognition of income from the new assets accrued beginning October 01, 2021. AREIT ended 2021 with a total GLA of 549,000 sqm and Assets Under Management (AUM) of P53 billion.
AREIT also disclosed its new three-year strategy, indicating its plans to reach P60 billion in AUM by 2022 and grow its asset portfolio at an average of 100,000 sqm of GLA in 2023 and 2024, translating to an increase of P10-15 billion in its AUM annually during the period.
The company maintains its thrust to grow and diversify its asset portfolio by sector, location, and income contribution and achieve a total shareholder return range of 10-12 percent.
The Securities and Exchange Commission (SEC) has allowed SeedIn Technology, Inc. and Eastern Securities Development Corporation to act as crowdfunding intermediaries and operate crowdfunding portals, providing the country’s small, medium, and emerging enterprises (SME) with more funding options.
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The article was originally published in Manila Bulletin and written by James A. Loyola.
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