THE GOTIANUN family’s Filinvest REIT Corp. (FILRT) recorded a 7% increase in its first-half net income to P601 million from P561.31 million a year ago, attributed to lower costs and expenses.
First-half revenue fell by an 11% decline to P1.4 billion from P1.58 billion last year due to the “overhang of the temporary drop in occupancy in the first quarter due to rightsizing of some tenants brought about by hybrid work,” FILRT said in a statement to the stock exchange on Thursday.
However, FILRT’s net income improved as costs and expenses during the period fell by 3.1% to P643 million on “prudent” management of company resources.
FILRT is the real estate investment trust of listed property developer Filinvest Land, Inc.
As of end-June, FILRT’s property portfolio had an 81% occupancy rate as the company is signing new traditional companies to replace business process outsourcing (BPO) tenants that have downsized due to the shift to work-from-home or hybrid setups of its employees.
FILRT’s portfolio consists of 17 office buildings and one resort lot totaling 330,448 square meters (sq.m.).
“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,” FILRT President and Chief Executive Officer Maricel Brion-Lirio said.
“We are looking to expand our portfolio and further diversify our tenant base as we continue to gain momentum,” she added.
FILRT also said it is not affected by the recent government ban on Philippine offshore gaming operators (POGOs).
“FILRT has no POGO exposure and has been free of POGOs since the second quarter of 2022,” it noted.
As of end-June, the company said that 13,126 sq.m. of new leases have been signed while 20,472 sq.m. already have letters of intent from prospective companies.
“On tenant retention, over 26,204 sq.m. or 46% of expiring leases for 2024 have already renewed, with another 16,270 sq.m. or 29% awaiting finalization of the renewal contract,” it said.
“FILRT has been deliberately diversifying its tenant mix, with the addition of traditional tenants and coworking 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,” it added.
On Thursday, FILRT shares rose by 1.67% or five centavos to P3.05 each. — Revin Mikhael D. Ochave
