May 16, 2023 – Filinvest REIT Corp. (FILRT), the flagship commercial REIT of the Filinvest group, recorded a net income of ₱304 million in the first quarter of 2023 on the back of rental and other revenues of ₱801 million. On a sequential basis comparing the first quarter results from the fourth quarter of 2022, net income rose by 17 percent as a result of a 5 percent improvement in rental revenues and a 13 percent reduction in operating costs. The successful acquisition of the 2.9 hectares of prime resort property that is being leased to Crimson Resort & Spa Boracay began contributing to FILRT’s income starting January 1, 2023.
“The infusion of the Boracay property is only a first step towards a more diversified portfolio for FILRT. While it has now broadened FILRT’s income profile mix beyond office leasing and into the growing Philippine hospitality and leisure segment, we remain focused on further growing FILRT’s portfolio organically and with regular asset infusions. We are guided by a clear investment strategy of increasing occupancy, cost management and asset acquisition to sustain the portfolio expansion and deliver stable and competitive return to our investors,” said FILRT president and chief executive officer Maricel Brion-Lirio.
Together with its fund management company, FREIT Fund Managers, Inc., FILRT is in the process of completing the due diligence and internal approvals of new asset infusions. The details of the portfolio expansion will be announced in due course.
Amidst the expansion plans, FILRT’s average occupancy rate in the first quarter of 2023 stood at 85 percent. Occupancy has been able to hold up compared to the estimated office industry’s average occupancy rate of 81 percent based on the Colliers Q1 2023 Property Market Report.
Nevertheless, FILRT continues to finalize new leases and renew expiring contracts. As of the end of the first quarter, almost 10,300 square meters of new leases have signed Letters of Intent and Contracts of Lease. On renewals, almost 17,200 square meters or 42 percent of the lease expiries for 2023 have already been renewed, with another 11,000 square meters or 27 percent awaiting finalization of the renewal contracts. The balance is due for renewal throughout the remainder of the year.
FILRT is focused on sustainability and the utilization of eco-efficient assets. Two buildings in FILRT’s portfolio are LEED Gold-certified while two other buildings passed the criteria for Level 1 certification on EDGE (Excellence in Design for Greater Efficiencies) developed by the International Finance Corporation. These green building certifications confirm FILRT’s commitment to sustainability, particularly on energy, water and resource efficiency. As a sustainability-themed REIT founded on strong ESG principles, FILRT looks forward to growing a resilient and robust real estate investment portfolio.
