AREIT, Inc. (AREIT), the first Philippine real estate investment trust, reported a 59 percent jump in net income to P796 million in the first quarter of 2022, excluding fair value change in investment properties.
In a disclosure to the Philippine Stock Exchange, the firm said profit growth was driven by higher revenues from stable operations and the contribution of assets acquired in 2021.
Total revenues increased by 66 percent to P1.2 billion, while earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 58 percent to P843 million, compared to the same period last year.
AREIT recorded an average occupancy of 97 percent and a rental collection rate of 98 percent, reflecting stable and high-quality tenancy across its properties.
The firm recently secured the approval of its stockholders on its second property-for-share swap with the sponsor, Ayala Land, Inc. (ALI).
The transaction involves six Cebu- based office buildings with an aggregate value of P11.26 billion in exchange for 252.14 million AREIT common shares at a swap price of P44.65 per share, as validated by a third-party fairness opinion.
This transaction will expand AREIT's gross leasable area to 673 thousand square meters or P64 billion in Assets Under Management (AUM) in 2022 – a 113 percent increase since the company went public, exceeding its target to double in size within two years from its IPO.
With this infusion, AREIT's dividend per share is projected to increase further. AREIT's full-year dividends from its 2021 income totaled P1.77 per share, a 34 percent increase from 2020 and 12 perent higher than its REIT plan projection during the IPO.
Last April 27, 2022, ALI sold 87.37 million AREIT shares in relation to the planned property-for-share swap transaction to maintain the required minimum public ownership of 33 percent after the said infusion.