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Filinvest REIT is considering acquisitions to strengthen its portfolio



Filinvest REIT is considering acquisitions to strengthen its portfolio

Filinvest REIT Corp. of the GOTIANUN family announced plans for possible real estate purchases on Wednesday.

“Our sponsor, Filinvest Land, Inc. (FLI) alone, has approximately 532,000 square meters of gross leasable area (GFA) of offices and retail in key central business districts that are potential acquisitions for Filinvest REIT in the near future. to the medium term,” said Maricel Brion-Lirio, President and Chief Executive Officer of Filinvest REIT during the company’s virtual annual shareholder meeting.

“Potential acquisitions may also come from the pipeline of assets owned by our sponsor’s parent company, Filinvest Development Corp. (FDC),” she added.

Filinvest REIT is the real estate investment trust of FLI.

Ms. Lirio said Filinvest REIT will focus both on increasing the occupancy rate of its current portfolio and acquiring assets from other Filinvest companies through real estate-for-equity swap deals.

“There are several identified assets, but these are dependent on a favorable exchange rate to enable an exchange of real estate for shares that yields dividends for investors in Filinvest REIT,” she added.

She also noted that six properties have achieved Excellence in Design for Greater Efficiency certifications. These include Vector One, Vector Two, Plaza A, Plaza D, Filinvest One, Filinvest Two and Filinvest Three.

“We will continue to intensify our efforts to reduce Filinvest REIT’s environmental footprint. We believe that it is an important obligation on our part to contribute to the preservation of the environment…,” she said.

In 2023, Filinvest REIT posted a net profit of P1.74 billion, a turnaround from the previous year’s net loss of P660.75 million. Revenue fell 7.7% to P2.99 billion.

The company ended 2023 with an average occupancy rate of 83%. New leases reached 20,139 m². including 4,512 m² of new traditional tenants.

Filinvest REIT has 17 fully operational Grade A office buildings and over 330,400 m² of office space. from GLA.

“In terms of tenant retention, 31,835 m². or 77% of 41,110 m². of the expiring leases were renewed in 2023,” she said.

“This led to a significant improvement in the weighted average lease term to 6.91 years as renewals and new leases for the year have been entered into, plus the addition of Crimson Boracay to the portfolio. The Crimson Boracay plot, which covers 9% of the total gross leasable area, has a 40-year lease,” she added.

On Wednesday, Filinvest REIT shares fell 1.72% or five centavos to P2.85 each. FLI shares were unchanged at 67 centavos each. FDC shares were also unchanged at P5.67 per share. — Revin Mikhael D. Ochave