AREIT profit hits P844M

    2091

    AREIT Inc., the Philippines’ first real estate investment trust (REIT), reported profits of P844 million in the first nine months of the year, driven by the stable operations of its leasing portfolio.

    “Total revenues amounted to P1.4 billion and earnings before interest, tax, depreciation and amortization reached P1.1 billion, a 3 percent and 4 percent improvement from the REIT plan, respectively, lifted by stable occupancy and operating efficiency,” the company said.

    AREIT failed to provide the comparative figure for both the topline and bottomline. It has yet to release its financial statement as well.

    The company said the acquisition of McKinley Exchange last February and a higher occupancy rate at Ayala North Exchange boosted its rental income to P1.1 billion, a 9 percent growth from the same period in 2019.

    “AREIT’s fundamentals remain strong and resilient, keeping its financial performance on track. We are also expanding our portfolio of leasing assets to seed the company’s future growth,” said Carol Mills, AREIT president.

    Following its successful listing last August 13, AREIT acquired the Cebu Teleperformance building in September, as it continues to bolster its growing portfolio with value-accretive assets.

    Last October 22, it also announced acquiring “The 30th,” a 76,000 square meter (sq.m.) commercial development along Meralco Avenue in Pasig City owned by mother company Ayala Land Inc. The acquisition is expected to be finalized by the first quarter of 2021 and will increase AREIT’s gross leasable area to 246,000 sq.m.

    The company is also looking to raise P6.4 billion in debt and through a retail bond issuance, while tapping short-term credit facilities with banks worth P12 billion for its future acquisitions.

    In September, AREIT distributed to shareholders its first cash dividends at P0.59 per share, reflecting income from its first half 2020 operations.