First Half Results In

According to AREIT disclosure on PSE edge, the company recorded modest gains on the first half of the year. This is a a very good earnings despite the pandemic and occasional lockdowns that we are experiencing.

REIT companies offer the benefits of providing dividends from Rental income of its property portfolio.

Last Friday closing the price of AREIT closed at 36.25pesos per share.

It stated;

“Ayala Land’s pioneering Real Estate Investment Trust (REIT) in the Philippines, AREIT Inc. (AREIT), posted revenues of P1.36 billion and earnings before interest, taxes, depreciation and amortization (EBITDA) of P1.05 billion for the first half of 2021, a 49% and 39% growth, respectively, versus last year.  This is a result of the positive contribution of new properties, The 30th in Pasig, and land parcels in Laguna Technopark it acquired last January 2021, Teleperformance Cebu in October 2020, and rental escalations of existing leases.  It sustained a high occupancy rate of 99%”

It has changed its accounting method from Cost Method to Fair Value Method

“To reflect the market value of its properties and align financial reporting practices with that of global REITs, AREIT secured the approval of the Bureau of Internal Revenue to change the accounting method it uses in valuing investment properties, from cost method to fair value method.  The company received the approval last June which takes effect retroactively from January 1, 2021.  Under the fair value method, it reported net income of P1.34 billion for the first half of 2021, 31% higher than last year.

Factoring out unrealized gains in the fair value recognition of its properties, AREIT’s net income reached P1.01 billion, 55% higher than last year, reflecting the company’s growth in earnings from its new properties and the stability of its existing buildings.”

Just recently AREIT and ALI and its subsidiaries, Westview Commercial Ventures Corp. and Glensworth Development, Inc., entered in a P15.5 billion property-for-share deal in June.

Disclosure states;

“Last June, AREIT and Ayala Land, Inc. (ALI) and its subsidiaries, Westview Commercial Ventures Corp. (WCVC) and Glensworth Development, Inc. (GDI), executed the Deed of Exchange on the property-for-share swap transaction. The share swap transaction is expected to be completed within the second half of the year.   AREIT currently has six properties with a total gross leasable area (GLA) of 344 thousand sqm and assets under management (AUM) valued at P37 billion.

Its GLA is slated to grow to 549 thousand sqm and AUM to P52 billion with the said transaction of P15.5

As of today, the stock price have significantly risen from its IPO price by more than 33%

There is also net foreign accumulation for the past few days

ICT keep its lead on the stock price movement as it gained 4.01% to be one of the movers in Friday’s closing.

Its price close and ended also at 52 weeks high with a price of 184.10 pesos/share

This is at the back of Q2 earnings of 89% a significant increase in income from Q2 last year. Its income statements is as below

It also stated a strong first half of the year income.

ICTSI 1H2021 Net Income Up 73% to US$196.7M; Volume, Revenues & EBITDA across all three geographic segments exceeded 2019 pre-pandemic performance

In summary

Throughput grew 14% to 5.5 million TEUs

Revenues increased 22% to US$882.6 million

EBITDA 28% higher to US$532.5 million

Consistent foreign buying was seen also on the stock with 6 digits each for the past 5 days. Last Friday a net foreign buying of 113.86M was recorded

Dividends Declared

It also declared  dividends of 1.01 pesos/share with a special cash dividends of 1.62pesos/share.

According to its disclosure

“In the Board Meeting held today, August 6, 2021, the Board of Directors of International Container Terminal Services, Inc. (ICTSI) approved the declaration of a regular cash dividend in the amount of Php1.01 per common share, alongside a special cash dividend in the amount of Php1.62 per common share. The total dividend (regular and special) of Php2.63 per common share is payable on September 1, 2021 to stockholders of record holding shares of ICTSI common stock at the close of business on August 20, 2021”

Chairman and President of ICTSI also said

“We are pleased to be able to declare a second dividend of Php2.63 per common share today, divided into a regular dividend of Php1.01 per common share and a special dividend of Php1.62 per common share. This second dividend declaration in 2021, together with the Php2.37 declared last March 2021, brings the total dividends for this year to Php5.00 per share, matching the same level we declared in 2019 before the pandemic. These regular and special dividends are consistent with our long-term commitment to create exceptional value and distribute the rewards of our performance to stockholders over time.”