AREIT profits jump 65% to P2.4 B

AREIT, Inc., the real estate investment trust of Ayala Land Inc., posted a 65 percent jump in net income (excluding fair value change in investment properties and the one-time gain on finance lease) to P2.4 billion in the first nine months of the year.

In a disclosure to the Philippine Stock Exchange, the firm said the substantial profit growth was driven by revenues, which increased by 68 percent to P3.6 billion.

AREIT said its significant growth in the first nine months of 2022 was due to the contribution of the assets it acquired in 2021 and the continuing stability of its tenancy and operations.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew 63 percent to P2.6 billion compared to last year.

AREIT reported an average occupancy rate of 97 percent and a rental collection rate of 98 percent as of September, 2022.

At the company’s regular board meeting held last October 11, the Board of Directors approved the declaration of P0.49 per share in cash dividends from operations in the third quarter of 2022.

This declaration brings the total dividends to P1.46 per share for the first nine months of 2022, 12 percent higher year-on-year.

AREIT filed with the SEC last June 2022, the Deed of Exchange on the infusion involving six Cebu-based office buildings.

It is awaiting regulatory approvals for this second property-for-share swap with its sponsor, Ayala Land, Inc. (ALI), within the year.

This transaction will expand AREIT’s gross leasable area to 673 thousand square meters or Assets Under Management (AUM) to P64 billion – a 113 percent increase since its IPO with a target to double in size within two years.

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The article was originally published in Manila Bulletin and written by James A. Loyola.