AREIT registers 26% profit rise to P1.3B

AYALA-LED real estate investment trust company AREIT, Inc. reported a 26.4% jump in net income for the second quarter to P1.3 billion from P815.19 million in the same period last year.

In a regulatory filing, the company reported that its revenues grew by 26.3% to P1.49 billion from P1.18 billion mainly due to rental income and dues.

AREIT’s rental income for the quarter rose by 31.3% to P1.14 billion from P868.68 million in the same period last year.

The company’s net dues reached P298.49 million, 16.7% higher than P255.75 million the previous year.

For the first half, the company saw a 25.2% jump in net income to P2.04 billion from P1.63 billion, driven by stable operations.

Its revenues during the six-month period went up by 26% to P2.97 billion from P2.36 billion in the same period last year, the bulk of which came from rentals.

Its rental income rose by 31% to P2.28 billion from P1.74 billion due to the addition of the Cebu properties, namely: Ebloc Towers 1 to 4, ACC Tower, and Tech Tower, in October last year.

Dues increased by 14% to P583.85 million from P511.49 million the prior year on the back of the operations of new assets acquired in October 2022.

The company said that it had signed the deed of exchange with Ayala Land, Inc. (ALI) for the infusion of the P22.48-billion flagship offices and malls to AREIT’s portfolio last June.

“AREIT is looking forward to securing regulatory approvals for this third property-for-share swap with its sponsor, ALI, within the year,” it said.

The transaction will increase AREIT’s gross leasable area by five times to 863,000 square meters or its assets under management to P87 billion.

AREIT shares went up by 0.29% or 10 centavos to P34 apiece on Tuesday. — Adrian H. Halili