Filinvest REIT Corp. Recorded Revenues of P1.4 Billion, Declares Third Quarterly Dividends in 2024 to Shareholders

The Board of Directors of Filinvest REIT Corp. (FILRT), in a meeting held on August 8, 2024, approved the dividend declaration to all stockholders amounting to P0.062 per outstanding common share.

This declaration brings year-to-date dividends to P0.191 per outstanding common share, equivalent to an annualized yield of 8.5% based on the closing share price on August 7, 2024. The quarterly cash dividends will be payable on September 6, 2024 to all stockholders on record as of August 23, 2024.

For the first half of the year, FILRT recorded revenues of P1.4 billion, a contraction of 11% from the same period in 2023, resulting from the overhang of the temporary drop in occupancy in the first quarter due to rightsizing of some tenants brought about by hybrid work. This was partially offset by the 3.1% drop in cost and expenses to P643 million as the company continued to be prudent in managing its resources. FILRT registered a net income of P601 million in the first six months of 2024.

The company’s portfolio of 17 office buildings and one resort lot totaling 330,448 square meters had an average occupancy of 79 percent in the first half of 2024, lower than the average occupancy of 84% in the same period last year. FILRT, however, has been proactively rebuilding its portfolio’s occupancy. By the end of June 2024, occupancy has increased to 81%. FILRT is likewise transitioning into having a more balanced tenant base by signing new traditional companies to replace the BPO tenants that have downsized due to the shift to work-from-home or hybrid set-ups of its employees.

“We are pleased with the steady improvement in occupancy of FILRT. Our deliberate efforts in rebuilding the tenancy of our office buildings are starting to pay off. We have been signing fresh names, particularly multinational BPO new entrants in the Philippines from Singapore and New Zealand, to name a few, as well as traditional companies,” said Ms. Maricel Brion-Lirio, President and CEO of FILRT. “We are looking to expand our portfolio and further diversify our tenant base as we continue to gain momentum,” she added.

FILRT remained ahead of competition in Alabang where 16 of the 17 buildings are located. FILRT registered higher occupancy than Alabang market occupancy of 73% as reported by Colliers International in its Q2 2024 Office market report. FILRT was also able to close new leases at the upper end of the P500-750 lease rate per square meter in the Alabang area.

As of end-June 2024, a total of 13,126 square meters of new leases have been signed by FILRT while another 20,742 square meters have Letters of Intent. On tenant retention, over 26,204 square meters or 46% of expiring leases for 2024 have already renewed, with another 16,270 square meters or 29 percent awaiting finalization of the renewal contract.

FILRT has been deliberately diversifying its tenant mix, with the addition of traditional tenants and co-working locators. The current overall tenant mix is comprised of 76% multinational BPO companies, 12% traditional and co-working spaces, 11% hospitality, and the balance for retail. FILRT has no POGO exposure and has been free of POGOs since the second quarter of 2022.

An update on FILRT’s commitment to sustainability includes the increase in number of buildings that are powered by renewable energy sources. To date, 16 of the 17 buildings or about 94% of its office portfolio by GLA is running on renewable energy. FILRT is also active in securing green certifications. Seven FILRT properties have certifications under EDGE (Excellence in Design for Greater Efficiency) while two buildings are LEED Gold-certified. These are on top of Filinvest City, where 92% of the portfolio by valuation is located, being an attractive PEZA and LEEDv4 Neighborhood Development-certified district in the strategic Alabang CBD.

Filinvest REIT Corp. (FILRT) is a real estate investment trust (REIT) company whose sponsor is Filinvest Land, Inc., one of the largest property developers in the Philippines with an established portfolio of residential, office, retail and industrial developments around the country.

FILRT was publicly listed on the Philippine Stock Exchange on 12 August 2021 as the Philippines’ first sustainability-themed REIT. Its original portfolio consists of 17 Grade A and LEED Gold certified office buildings which include green and sustainability-themed features. An addition to the portfolio is 2.9 hectares of land that is being leased to the owner and operator of Crimson Resort & Spa Boracay.

​Totaling over 330,000 square meters of gross leasable area, 16 of the buildings are in Northgate Cyberzone in Filinvest City in Alabang. Filinvest City is a 244-hectare mixed-use and integrated city that is the first and only central business district in the Philippines to receive LEED® (Leadership in Energy and Environmental Design) v4 Gold for Neighborhood Development Plan certification as well as a three-star BERDE (Building for Ecologically Responsive Design Excellence) certification. Another building is Filinvest Cyberzone Cebu Tower 1 located in the gateway of Cebu IT Park in Lahug, Cebu City.