AREIT nets P1.23B in 2020

Ayala land-backed AREIT Inc., the country’s first real estate investment trust, posted a net income of P1.23 billion in 2020, its first year of operations.

In a disclosure to the Philippine Stock Exchange, AREIT said its full year net income last year is “on account of stable operations during the pandemic.”

The company also recorded P1.95 billion in revenues and earnings before interest, taxes, depreciation and amortization (EBITDA) of P1.58 billion, which are 3% and 4% higher than its respective targets.

The board of directors of AREIT also approved the declaration of dividends of P0.39 per share for the fourth quarter of 2020 to be distributed on March 25, 2021 to stockholders on record as of March 15, 2021.

The company’s full-year dividends from its 2020 income totaled P1.32 per share, slightly higher than its REIT plan projection during its initial public offering.

AREIT debuted on the Philippine Stock Exchange in August last year. It is the country’s first REIT listing after more than a decade since the REIT Act was passed in 2009. 

The law allowed companies to list their real property assets on the Philippine Stock Exchange as a new vehicle to raise funds for other investments and expansion initiatives.

“As the first Philippine REIT, AREIT performed consistently, delivering dividends and growing its assets,” said Carol Mills, president and chief executive officer of AREIT.

Among the company’s strategic investments in 2020 was the Teleperformance Cebu Building, which was acquired last September using primary proceeds from the IPO and this immediately contributed to the company’s operating income.

To further boost its growth prospects, the company also purchased in January 2021 The 30th, a 75,000 square meter commercial development located in Pasig City.

In the same month, AREIT also acquired 98,000 square meters of land located at Laguna Technopark currently leased by Integrated Micro-Electronics, Inc. for its manufacturing business.

AREIT’s total assets under management has grown from 153,000 square meters during its IPO to 344,000 square meters of gross leasable space, including land that is directly leased and generating income.

The company’s total deposited property is valued at P37 billion.

“Operations remained strong throughout the year. Business resilience, health and safety of all our building locators and service personnel were our focus areas as all our properties remained open throughout the pandemic,” Mills said.

In December 2020, the company bared its three-year investment strategy to support its expansion plans, keyed on income-generating real estate that meets its set stringent criteria.

AREIT said it aims to provide a 10% to 12% total shareholder return per year through organic growth and new acquisitions. — RSJ, GMA News