AREIT H1 net income up 31% to P1.34B

Ayala Land-backed real estate investment trust (REIT) AREIT Inc. saw a double-digit increase in its net profit during the first half of 2021.

In a disclosure to the Philippine Stock Exchange on Friday, AREIT reported a net income of P1.34 billion, up 31% from a year earlier.

The company posted P1.36 billion in revenues, up 49% year-on-year, and P1.05 billion in earnings before interest, taxes, depreciation and amortization (EBITDA), up 39% in the same period last year.

AREIT said the upbeat financial results resulted from positive contribution of new properties, namely The 30th in Pasig, and land parcels in Laguna Technopark it acquired last January 2021, Teleperformance Cebu in October 2020, and rental escalations of existing leases. 

It sustained a high occupancy rate of 99%, the company said.

“As we complete our first full year of operations as a REIT since August 13, 2020, we have delivered consistently on our targets and positioned the company for growth with the addition of new assets," Carol Mills, AREIT president and CEO, said.

"We instituted measures to assure our locators and customers of the safety of our properties and personnel amidst the pandemic. The company continues to ensure high standards of Environmental, Social and Governance practices for all stakeholders,” she added.

Last June, AREIT and Ayala Land and its subsidiaries, Westview Commercial Ventures Corp. (WCVC) and Glensworth Development, Inc. (GDI), executed the deed of exchange on the property-for-share swap transaction.

The share swap transaction is expected to be completed within the second half of the year, the company said.

AREIT currently has six properties with a total gross leasable area (GLA) of 344,000 square meters (sqm) and assets under management (AUM) valued at P37 billion.

Its GLA is slated to grow to 549,000 sqm and AUM to P52 billion with the said transaction of P15.5 billion worth of commercial assets from its sponsor, Ayala Land.—LDF, GMA News