Filinvest REIT Corp. Reported a PHP 1.3 Billion Core Net Income, Declared P 0.067 Per Outstanding Common Share

The Board of Directors of Filinvest REIT Corp. (FILRT), in a meeting held on February 26, 2024, approved the dividend declaration to all stockholders amounting to P0.067 per outstanding common share. The cash dividends will be payable on March 26, 2024 to stockholders on record as of March 11, 2024. This first quarterly cash dividend declaration for the year translates to an annualized yield of 8.3 percent based on the previous trading day’s closing price of P3.23 per share.

Based on unaudited financial statements, FILRT recorded a net income of P1.05 billion in 2023. Excluding the net fair value change in investment properties, FILRT posted a net income of P1.28 billion on the back of rental and other revenues of P3.0 billion. FILRT ended 2023 with an average occupancy of 83 percent, which is better than market occupancy of 81 percent as reported by Colliers in its 4Q 2023 Office market report.

As of end December 2023, FILRT successfully signed new leases totaling 20,139 square meters, including 2,630 square meters in the 4th quarter of 2023 coming from the expansion of two BPO companies. This also includes 4,512 square meters of new traditional tenants, reinforcing FILRT’s strategy of diversifying its tenant base. The size of new leases in 2023 is almost a fourfold improvement from the signed 5,087 square meters of new leases in 2022. New leases were closed at higher rates against current transacted rates in the Alabang area based on the Colliers report.

In terms of tenant retention, 31,835 sqm, or 77 percent of 41,110 square meters of expiring leases in 2023 were renewed. For 2023, the WALE has improved significantly as renewals and new leases for the year have set in and the addition of Crimson Boracay pushed the WALE to 6.91 years. The Crimson Boracay lot, which comprises 9 percent of the total GLA, has a 40-year lease.

As part of its strategies, FILRT has been deliberate in diversifying its tenant mix with the addition of traditional tenants and co-working locators. Current tenant mix is comprised of 78 percent multinational BPO companies, 11 percent traditional office and co-working, 11 percent hospitality, and the small remainder taken up by retail tenants. FILRT has zero POGO exposure.

“The new leases that we have in 2024 have been encouraging and we are optimistic that leasing activities will improve further in the second half of the year,” said Ms. Maricel Brion-Lirio, President and CEO of FILRT. “Despite some challenges in the market conditions, we remain committed to expanding our portfolio and steadfast in our goal to significantly increase dividends for our shareholders in the long term,” she added.

Given the heightened importance of sustainability in tenants’ office requirements, FILRT has been in the forefront of incorporating green features into its portfolio. This is continuously being done through retrofitting, shifting to renewable or clean energy, implementing efficient water systems, and securing certifications to ensure baseline standards are met. At present, seven FILRT properties (Vector One, Vector Two, Plaza A, Plaza D, Filinvest One, Filinvest Two and Filinvest Three) have certifications under EDGE (Excellence in Design for Greater Efficiency), an international green building standard created by the International Finance Corporation of the World Bank. Two buildings in FILRT’s portfolio are also LEED Gold-certified. These distinctions underscore FILRT’s commitment to sustainability and the utilization of eco-efficient assets.

FILRT’s future growth will be driven by a pipeline of high-value and green-designed assets that attract tenants who share Filinvest’s sustainability goals. Sponsor Filinvest Land, Inc. (FLI) has about 532,000 square meters of office and retail GLA in key CBDs that are potential acquisitions for FILRT in the near to medium term.

FILRT was recognized for its exemplary adherence to regional corporate governance practices at the Institute of Corporate Directors’ (ICD’s) annual ASEAN Corporate Governance Scorecard (ACGS) Golden Arrow Awards. FILRT was honored with 1-Golden Arrow as a testament to its commitment to corporate governance excellence.

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