Net income of Ayala REIT jumps by 64% in January-June

Areit Inc., the real estate investment trust (REIT) of Ayala Land Inc., said its net income rose 64 percent to P1.62 billion in the first half from last year’s P1.31 billion.

Excluding fair value change in investment properties and the one-time gain on finance lease, the company said its income reached P1.61 billion.

Revenues rose 67 percent to P2.36 billion from last year’s P1.41 billion.

Areit said it recorded an average occupancy of 97 percent and a rental collection rate of 98 percent, reflecting high-quality tenancy across its properties.

The company also approved the declaration of P0.49 per share in cash dividends from operations in the second quarter, following the 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.

In June, Areit filed with the Securities and Exchange Commission the deed of exchange for the infusion of six Cebu-based office buildings into the company.

“It is looking forward to securing regulatory approvals for this second property-for-share swap with its sponsor Ayala Land Inc. within the year,” the company said.

This transaction will expand Areit’s gross leasable area to 673,000 square meters or assets under management to P64 billion, or double the size since its initial public offering.

This month, Areit will mark its second anniversary as the first Philippine REIT since its listing on the Philippine Stock Exchange on August 13, 2020.

In May, Ayala Land announced that it executed a property for share swap deal valued at P11.25 billion with AREIT.

The deal involves the issuance of 252.13 million primary common shares of Areit to Ayala Land at an issue price of P44.65 per share in exchange for identified properties. The transaction, first announced in March, will see Ayala Land increasing its ownership in Areit to 66 percent from the previous 60.32 percent.