AREIT earns P2.4 billion amid stable operations

AYALA LAND, Inc.’s (ALI) real estate investment trust (REIT) unit AREIT, Inc. booked a P2.43-billion net income in 2021, the company said in a statement on Monday.

The full-year income already takes into account the P165-million net fair value change in its investment properties. Excluding that change in investment properties, net income would amount to P2.27 billion.

The Ayala-led REIT firm also said it saw stable operations in 2021, resulting in a 98% occupancy rate and a 98% rental collection rate.

AREIT generated a 63% revenue growth to P3.32 billion in 2021, while its earnings before interest, taxes, depreciation and amortization (EBITDA) went up 55% to P2.4 billion.

AREIT ended the year with a total gross leasable area (GLA) of 549,000 square meters (sq.m.) and assets under management (AUM) worth P53 billion. It is targeting to grow its AUM to reach P60 billion by this year.

The company aims to expand its asset portfolio at around 100,000 sq.m. of GLA in 2023 and 2024, which would increase its AUM by P10-15 billion.

“The company maintains its thrust to grow and diversify its asset portfolio by sector, location, and income contribution and achieve a total shareholder return range of 10-12%,” AREIT said.

The company bought Pasig City-based The 30th in 2021, adding 75,000 sq.m. to its GLA on top of a 98,000 sq.m.-property in Laguna Technopark, which is currently leased by Integrated Micro-Electronics, Inc.

AREIT also put into place a property-for-share deal with its sponsor ALI and subsidiaries last year, allowing AREIT to add the Vertis North Office Towers and mall, Ayala Life FGU office condo units, One and Two Evotech BPO buildings, and Ayala Northpoint BPO Buildings.

In a separate disclosure to the exchange on Monday, ALI’s board of directors approved a plan to raise up to P45 billion in debt capital.

ALI said the proceeds will be used to refinance maturing debt and to partially fund general corporate requirements. Funds will be raised via issuing retail bonds and/or corporate notes to be listed on the Philippine Dealing and Exchange Corp. and/or through the execution of bilateral term loans.

AREIT shares at the stock exchange climbed 0.61% or 30 centavos to close at P49.30 apiece on Monday, while ALI stocks went up 4.84% or P1.80 to finish at P39 each. — Keren Concepcion G. Valmonte