Arthaland keeps strong credit rating

MANILA, Philippines — Listed real estate developer Arthaland Corp. has kept a strong credit rating for its P6 billion green bonds.

The Philippine Rating Services Corp. (PhilRatings) maintained the issue credit rating of PRS Aa with a stable outlook for Arthaland’s outstanding green bonds.

Obligations rated PRS Aa are of high quality and are subject to very low credit risk. Further, the obligor’s capacity to meet its financial commitment on the obligation is very strong.

A stable outlook, on the other hand, is assigned when a rating is likely to be maintained or to remain unchanged in the next 12 months.

The rating and outlook were assigned given Arthaland’s good reputation and experience in developing premium green certified buildings and its ability to grow and compete in its chosen segment despite the presence of larger and more established competitors.

Key considerations for the rating and outlook assignment were the company’s improved and manageable leverage position as well as significant revenue and net income growth.

Arthaland, a developer of premium residential and commercial properties with a 100 percent certified sustainable portfolio, is committed to transforming the real estate landscape by integrating sustainable practices, fostering healthier communities and contributing to a more inclusive and resilient future.

All of the company’s projects are multi-certified by both local and global organizations in terms of environmental sustainability.

Its completed projects include the Arya Residences, Arthaland Century Pacific Tower, Cebu Exchange and Savya Financial Center.

The company is in the last year of its medium-term goal where it intends to grow its gross floor area to approximately 456,019 square meters.

Arthaland’s net income declined to P123.2 million in the first quarter from P142.1 million in the same quarter in 2023 due to a change in revenue mix between the two periods and higher operating expenses for finished projects including Cebu Exchange and Savya.

Total real estate revenues for the three-month period, however, grew by 17.7 percent to P983.5 million.