AREIT Inc., the real estate investment trust company of Ayala Land Inc., booked a net income of P796 million in the first quarter, up 59 percent year-on-year on higher revenues and contribution of newly-acquired assets.
AREIT said in a disclosure to the stock exchange first-quarter revenues increased 66 percent as the occupancy and collection rates of leasing projects remained stable at 97 percent and 98 percent, respectively.
The company said to boost asset portfolio, it secured shareholders’ approval for a second property-for-share swap with sponsor Ayala Land.
The transaction involves six Cebu-based office buildings with an aggregate value of P11.257 billion. Under the plan, AREIT will acquire these assets in exchange for 252.136 million AREIT common shares at a swap price of P44.65 per share, as validated by a third-party fairness opinion.
The office buildings have gross leasable area of 124,299 square meters, with an overall occupancy rate of 97 percent, leased by major business process outsourcing firms. Jenniffer B. Austria