AREIT, Inc., the real estate investment trust of Ayala Land Inc., reported a 64 percent jump in net income (excluding fair value change in investment properties and the one-time gain on finance lease) to P1.61 billion in the first half of 2022.
In a disclosure to the Philippine Stock Exchange, the firm said the strong performance was driven by revenues, which increased by 67 percent to P2.36 billion in the first semester of the year.
AREIT said this is on account of stable operations and the contribution of assets acquired in 2021. It recorded an average occupancy of 97 percent and a rental collection rate of 98 percent, reflecting high-quality tenancy across its properties.
At the company's regular board meeting, the Board of Directors approved the declaration of P0.49 per share in cash dividends from operations in the second quarter of 2022, higher than P0.48 per share in the first quarter of the year.
This declaration brings the total dividends to P0.97 per share for the first half of 2022, 10 percent higher year-on-year.
AREIT filed with the SEC last June 2022, the Deed of Exchange on the infusion involving six Cebu-based office buildings.
It is looking forward to securing regulatory approvals for this second property-for-share swap with its sponsor, Ayala Land, Inc. (ALI), within the year.
This transaction will expand AREIT's gross leasable area to 673 thousand square meters or Assets Under Management (AUM) to P64 billion – a 113 percent increase since its IPO with a target to double in size within two years.
Throughout its first two years of operations, AREIT delivered consistent and growing financial results, with dividends increasing by 75 percent in the past two years, from P0.28 per share for the first quarter of 2020 to P0.49 per share for the second quarter of 2022.