Filinvest REIT Corp. (FILRT) sustains quarterly dividend declarationAug 10, 2023
August 10, 2023 – Filinvest REIT Corp. (FILRT) sustained the level of its dividend declaration in the third quarter of 2023. In a meeting held on August 10, 2023, the Board of Directors of FILRT approved the dividend declaration to all stockholders amounting to ₱0.071 per outstanding common share, maintaining the same level as the previous two quarters. The cash dividends will be payable on September 20, 2023 to stockholders on record as of August 31, 2023.
This declaration brings year-to-date dividends to ₱0.213 per outstanding common share which is equivalent to an annualized yield of 8.5 percent based on the previous day’s market price. This is FILRT’s third quarterly cash dividend declaration for the year.
“We remain steadfast in our goal to deliver stable dividends and provide attractive returns to our investors. Despite the challenges faced by the office leasing sector in the past 12 months brought about by the rightsizing and recalibrating of multinational tenants’ hybrid work setups, we believe that the sector is resilient and headed towards recovery. More locators are now experiencing the advantages of working in the office including increased productivity supported by a vibrant workplace and community,” said FILRT president and chief executive officer Maricel Brion-Lirio.
“Our focus in FILRT is to expand our portfolio by diversifying our asset mix with more traditional tenants such as co-working locators with whom FILRT has closed over 4,000 square meters. FILRT is also focused on renewing tenants and managing costs. Asset acquisition is also a strategic imperative we plan to execute at the opportune time,” Brion-Lirio added.
FILRT recorded a net income of ₱561 million in the first half of 2023, achieved on the back of rental and other revenues of ₱1.58 billion. Average occupancy for the first half of the year was 84 percent, a slight reduction from the 85 percent average in the first quarter, as new signed leases have yet to take effect.
FILRT has recently signed in the past month over 7,200 square meters of office space, bringing total new signed leases to over 17,500 square meters this year coming from a mix of BPO and co-working tenants. It is also in the process of finalizing an additional 8,400 square meters that are expected to materialize in the next quarter with other ongoing discussions with various BPO and traditional companies. FILRT has also renewed 29,427 square meters or 72 percent of expiring leases in 2023 with another 2,408 square meters or 5 percent that have signed renewal Letters of Intent. Both new leases and renewals were closed at higher rates against current transacted rates in the Alabang area according to the Colliers 2Q 2023 market report. FILRT’s Weighted Average Lease Expiry (WALE) is 6.9 years as of end-1H23.
FILRT is focused on sustainability and the utilization of eco-efficient assets. Six FILRT properties (Vector One, Vector Two, Plaza A, Plaza D, Filinvest Two and Filinvest Three) were awarded certification under EDGE (Excellence in Design for Greater Efficiency), an international green building standard created by the International Finance Corporation. This gives FILRT the distinction of having the highest number of EDGE-certified office buildings among the REITs in the Philippines. Two buildings in FILRT’s portfolio are also LEED Gold-certified. These green building certifications confirm FILRT’s commitment to sustainability.
FILRT’s growth is anchored on a pipeline of high-value and green-designed assets that attract tenants who share Filinvest’s sustainability goals. Energy, water and resource efficiency, as well as inclusive mobility, green spaces and human experience are fundamental principles that are incorporated into the master planning of the district where FILRT properties are located.