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Press Release

Filinvest REIT diversifies revenue sources in renewed push to improve occupancy

Filinvest REIT diversifies revenue sources in renewed push to improve occupancy

Filinvest REIT Corp. (FILRT), the flagship commercial real estate investment trust (REIT) of the Filinvest Group and the Philippines’ first sustainability-themed REIT, is continuously expanding its leasing portfolio despite headwinds as it looks to add over 12,000 square meters in new leases as well as new co-working spaces designed to meet present customer needs.

"We are glad to announce our fresh wins, as we strive to meet the renewed demand for high-quality office spaces from both new and existing tenants who recognize the value of our sustainability thrust. This will allow us to grow and diversify our portfolio of sustainable commercial properties that elevate the lives and well-being of our community,” said Maricel Brion-Lirio, FILRT President and Chief Executive Officer.

Co-working facility operators and new business process outsourcing (BPO) tenants—fueled by growth prospects brought about by locating in FILRT’s dependable and sustainable locations—are looking to add about 7,000 square meters in new leases.

FILRT is also in advanced talks with two major BPO firms looking to expand their current leases with FILRT. An American professional services firm headquartered in New York with about 100,000 employees globally is about to sign for additional two floors in one of FILRT’s 16 buildings in Northgate Cyberzone in Alabang. Another existing tenant, a BPO company headquartered in Europe with over 50,000 employees globally, is expected to follow suit for an additional 2,300 square meters of office space.

This brings FILRT’s expected new leases to 12,400 square meters. This is on top of the almost 10,300 square meters of new leases signed earlier this year.

Cognizant of the changing office leasing landscape, FILRT is accelerating its co-working or flexible office space solutions in partnership with the largest provider in the Philippines to ably respond to the shifting customer demand brought about by hybrid work setups. This will not only provide an additional source of revenues but it also balances the office leasing portfolio.

One of FILRT’s objectives is to diversify the office portfolio by reducing the concentration on large BPO names and increasing the share of co-working and traditional tenants in the mix. This will be done while continuing to service the needs of expanding and migrating BPOs.

As a portfolio manager, FILRT’s strategy is to expand in key central business districts in Metro Manila and toward major regional hubs in the Philippines with high and stable occupancy and deliver additional value by driving more efficient and sustainable cost of operations. New asset acquisitions will continue to focus on Grade A commercial properties and will expand beyond office leasing to include other asset classes such as retail, leisure, residential and industrial properties into its portfolio.

FILRT’s Weighted Average Lease Expiry (WALE) is 7.1 years as of end-1Q23, and is forecast to increase as new leases and renewals for the year set in.

As a sustainability-themed REIT, 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 the human experience are fundamental principles that are incorporated into the master planning of the district where FILRT properties are located.

In the first half of 2023, 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.