AREIT Inc., the country’s first real estate investment trust (REIT) company, assured the resiliency of its office segment, given the strength of the country’s office market amid the
In the company’s virtual stockholders meeting on Friday, AREIT Chairman Jose Emmanuel Jalandoni said the local office segment remained resilient, driven by the business process outsourcing (BPO) companies.
He said 99 percent of the buildings of AREIT are occupied and contracted long-term by business process outsourcing (BPO) tenants.
AREIT President and Chief Executive Officer Carol Mills also noted that the company’s office tenants are of large BPOs and multinationals with global interactions.
“Now that the global economy is recovering, the need for global outsourcing continues and could possibly even increase to manage operating costs,” Mills continued.
Mills added that only less than 2 percent of their portfolio’s office leases is expiring this year, which makes them “not directly exposed to market vacancy and possible rental adjustments at this time.”
The executive also said that AREIT is relatively resilient because of its diverse office locators and its implementation of pre-termination penalties.
It also has no Philippine offshore gaming operator tenants, which is currently driving vacancy in the country’s office market, according to Mills.
AREIT ended last year with a net income of P1.23 billion on the back of stable operations during the pandemic.
Its full-year revenues likewise climbed 3-percent higher than its REIT plan to P1.95 billion in 2020.
Shares of AREIT gained 5 centavos or 0.15 percent to finish at P34.05 apiece on Friday.