PLDT Inc. is exploring strategic options for its data center business, with the real estate investment trust (REIT) listing now back on the table, its chairman said.
“We want to reduce our debt. I think we are in for tougher times ahead and it is best that we create some liquidity for PLDT,” PLDT Chairman and Chief Executive Officer Manuel V. Pangilinan told reporters.
The company is in talks with a multinational group for a possible acquisition of stake in PLDT’s data center business — ePLDT Inc.
“The process continues. Off and on, I think we probably need a partner now. We are willing to sell a minority stake in our data center,” he said. “Or possibly do a REIT. That’s being considered. Because we want to reduce our debts. I think we’re in for tougher times ahead. And it’s best that we create some liquidity for liquidity. We don’t want to see a credit downgrade for PLDT.”
PLDT had previously announced plans to finalize the sale of a minority or 49% stake in ePLDT to a foreign entity for over $1 billion after talks with Japan’s Nippon Telegraph and Telephone Corp. (NTT) failed to progress.
In August, Mr. Pangilinan said the company had resumed talks to sell a stake in its data center business.
ePLDT is currently negotiating with several companies to sell 49% of its data center business, valued at $1 billion.
REITs are companies that own real estate-related assets, generating income from properties like land, buildings, and real estate securities. They are created to provide an alternative to illiquid real estate investments, offering a liquid asset class. Publicly traded property stocks, such as REITs, enable investors to access real assets.
Earlier this year, PLDT inaugurated VITRO Sta. Rosa, its 11th data center amid its goal to continue expanding its data center business.
The facility, located on a five-hectare site in Sta. Rosa, Laguna, is said to be the country’s largest data center campus, with a capacity of up to 50 megawatts (MW). Across all sites, VITRO data centers have a combined capacity of nearly 100 MW.
The company also said it is moving closer to building its 12th and largest data center. The facility will rise in General Trias, Cavite, and will have a capacity of up to 100 MW — double that of VITRO Sta. Rosa.
PLDT posted a third-quarter attributable net income of P6.93 billion, down 28.26% from P9.66 billion in the same period last year, as higher expenses offset revenue growth.
It reported revenues of P53.71 billion, slightly up from P53.36 billion a year ago, while expenses rose to P42.36 billion from P39.62 billion.
Hastings Holdings, Inc., a unit of the PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose
