AREIT Q1 profit up 59%

AREIT Inc. posted double-digit growth in both its net income and revenues in the first three months of the year.

In a filing to the exchange on Friday, the country’s maiden real estate investment trust (REIT) reported a 59-percent better profit of P796 million last quarter on the back of higher revenues from stable operations and the contribution of the assets it acquired last year.

The company’s revenues ended at P1.2 billion in January to March, up 66 percent year-on-year.

AREIT noted that its average occupancy stood at 97 percent, while its rental collection rate was at 98 percent during the period.

The REIT company recently secured the approval of its stockholders on its second property-for-share swap with Ayala Land Inc.

The transaction has an aggregate value of P11.26 billion and involves six Cebu-based office buildings, in exchange for 252.14 million primary common shares of AREIT priced at P44.65 apiece.

The transaction expands AREIT’s gross leasing area to 673,000 square meters or P64 billion in assets under management (AUM), a jump of 113 percent since it went public.

Shares of AREIT lost 55 centavos or 1.42 percent to finish at P38.25 each on Friday.

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