AREIT Profit Grew 69% To ₱84-M
Ayala-led AREIT, Inc. reported a 69.2% rise in third-quarter net income to P814.21 million due to higher contributions from its asset infusions last year.
Photo Insert: Ayala North Exchange
In a stock exchange disclosure on Thursday, the real estate investment trust (REIT) said revenues during the quarter grew 69.3% to P1.19 billion. Rental income was the biggest contributor with P896.57 million, up by 69.7% from P528.46 million.
During the nine-month period, AREIT’s net income climbed by 35.8% to P2.4 billion, which it attributed to contributions from assets acquired in 2021. Its revenues from January to September increased by 67.9% to P3.56 billion. The company’s rental income surged 65.4% to P2.64 billion.
AREIT said that as of September, its portfolio’s average occupancy rate was 97%, while the rental collection rate was at 98%. In June, the company filed a deed of exchange for the infusion of Ayala Land, Inc.’s six Cebu-based office buildings.
“It is awaiting regulatory approvals for this second property-for-share swap with its sponsor — [Ayala Land], within the year,” the company said.
If realized, the move will increase AREIT’s total gross leasable area to 673,000 square meters and its assets under management to P64 billion. “[This is] a 113% increase since its initial public offering with a target to double in size within two years,” the company said.
On the stock exchange on Thursday, shares in AREIT climbed by 10 centavos or 0.32% to P31.80 apiece.