AREIT Inc. recorded profit of P2.9 billion, up 19.34 percent from P2.43 billion in 2021.
Revenues reached P5.1 billion, an increase of 53.61 percent from P3.32 billion the prior year, while earnings before interest, taxes, depreciation and amortization rose 52 percent to P3.6 billion.
The real estate investment trust (REIT) of the Ayala Group of companies said its portfolio of office spaces benefitted from a stable operation with occupancy at 98 percent, and a strong collection performance.
The company received the Securities and Exchange Commission’s approval in December last year for the property-for-share swap with its mother company Ayala Land Inc. for the exchange of six Cebu-based office buildings, particularly eBloc Towers 1 to 4 located at the Cebu IT Park as well as ACC Tower and Tech Tower located at Ayala Center Cebu, for more shares in AREIT.
“The recognition of income from these new assets accrued beginning Oct. 1, 2022, capping the year with a total GLA (gross leasable area) of 673,000 square meters (sq.m.) from 549,000 sq.m. and assets under management (AUM) of P64 billion from P53 billion in 2021,” AREIT said.
With the recently concluded acquisition, AREIT said it outperformed its target to reach P60 billion in AUM by 2022.
It, however, reiterated its aspiration to further grow its asset portfolio at an average of 100,000 sq.m. of GLA from 2023 to 2025, translating to an increase of P10 billion to P15 billion in 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 to 12 percent,” AREIT said.
The company closed the period with a net gearing of 0.05:1. – Ruelle Castro
