Property

AREIT books P844M profit in nine months

The country’s real estate investment trust, Ayala-led AREIT Inc. posted a net income of P844 million in January to September, mainly on the back of stable operations of its leasing portfolio.

Total revenues reached P1.4 billion while earnings before interest, tax, depreciation and amortization (EBITDA) amounted to P1.1 billion, 3% and 4% higher than the REIT plan, respectively.

Rental income rose 9% to P1.1 billion, boosted by the acquisition of McKinley Exchange in February and a higher occupancy rate at Ayala North Exchange.

“AREIT’s fundamentals remain strong and resilient, keeping its financial performance on track. We are also expanding our portfolio of leasing assets to seed the company’s future growth,” said AREIT president Carol T. Mills.

To bolster its growing portfolio with value-accretive assets, AREIT is acquiring The 30th, a shopping mall located along Meralco Avenue in Pasig City to boost its gross leasable area to 246,000 square meters.

The transaction is is expected to be finalized by the first quarter of 2021.

AREIT is also tapping the debt market to raise as much as P6.4 billion. It is also looking at obtaining P12 billion worth of short-term credit facilities with banks to fund future acquisitions.

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