AREIT net income grows 60% in Q1

Ayala Land-sponsored real estate investment trust AREIT Inc. posted a high double-digit bottom line growth in the first quarter of 2021 on the back of stable operations and the contribution of newly-acquired assets.

In a disclosure to the Philippine Stock Exchange, AREIT reported a net income of P403 million, up 60% year-on-year as it booked P608 million revenues, 52% higher from a year earlier.

This, as the company saw an occupancy rate of 99% and 95% collection rate.

“AREIT’s first quarter performance was marked by significant growth and business resilience. This is driven by the quality and stability of our properties as well as the addition of new assets to our portfolio.  Our focus is to ensure that our business operations are optimized and that the company is positioned for growth,” said AREIT president and CEO Carol Mills.

In January, AREIT acquired The 30th, a 75,000-square meter (sqm) commercial development located in Pasig City and 98,000 sqm of land located at Laguna Technopark currently leased by Integrated Micro-Electronics Inc. for its manufacturing business.

Along with the acquisition of the Teleperformance Cebu building last October 2020, AREIT said the properties boosted its income during the period and increased its gross leasable space to 344,000 sqm and assets under management (AUM) to P37 billion.

The company’s expansion activities continued in April as AREIT secured the approval of its stockholders to increase its authorized capital stock from P11.7 billion to P29.5 billion along with the infusion of P15.5 billion worth of commercial assets from its sponsor, Ayala Land, in exchange for 483 million shares during its first annual stockholders’ meeting.

The transaction is expected to be completed within the second half of the year, according to AREIT.

“This will further grow AREIT’s gross leasable space to 549,000 sqm and AUM to P52 billion,” it said.—AOL, GMA News