February 14, 2023 – Filinvest REIT Corp. (FILRT), the flagship commercial REIT of the Filinvest group, demonstrated resilience and steady growth in 2022 despite the challenges faced by commercial REITs in the Philippines. These included headwinds in the office leasing industry due to hybrid work arrangements as well as the impact of interest rate hikes. The Company’s share price ended the year broadly in line with the share price movement of the composite market capweighted Philippine commercial REIT sector. Amidst all these challenges, FILRT was able to deliver a 7.35% dividend yield for its investors (based on total dividends paid in 2022 on 2022 closing price of ₱5.50 per share).
FILRT was able to sustain its occupancy and rental rates per square meter and was well above the industry rates in locations where the properties are located, namely in Alabang and Cebu. In the final quarter of 2022, FILRT acquired a prime property with a gross leasable area (GLA) of 29,086 square meters in Boracay, Aklan. As a result of this acquisition, the Company was able to increase d its portfolio GLA by +9.65%. The Boracay property, which is leased to the wellregarded Crimson Resort and Spa Boracay, broadens FILRT’s income profile mix beyond office leasing and into the hospitality sector. The property’s tenant is the Crimson Resort & Spa Boracay, which is a property of an affiliate under its common ultimate parent company, Filinvest Development Corporation (FDC). The property is located at Station Zero, which is in the more exclusive section of Boracay and has its own private beach front. The Crimson Resort & Spa
Boracay was recently recognized by Conde Nast Johannsen as an “excellent resort for families” and was also named by Time Magazine in their “50 Best Places to Visit” list.
Maricel B. Lirio, FILRT President and CEO, said, “The acquisition of the Boracay property not only expanded FILRT’s asset types, but also broadens its income profile, allowing us to diversify beyond office leasing-driven business districts and into hospitality. FILRT is focused on diversifying its portfolio to boost dividends for its shareholders while improving the revenues of its existing prime office assets.”
FREIT Fund Managers, Inc. (FFMI), which discloses FILRT’s quarterly performance, said that thecompany’s growth will be driven by assets that conform to its investment criteria. The company’s strategy is to expand in key central business districts in Metro Manila and towards major regional hubs or key cities in the Philippines with high and stable occupancy from income-generating grade A real estate properties, 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 the addition of retail, leisure, residential and industrial properties into its portfolio. The acquisition of the Boracay property is a key step towards the direction the Company has expressed in its latest investment strategy. FFMI noted that the Company’s dividend yield of 7.35% was relatively competitive when compared to where 10-year government bond yields were trading in 2022 (10-year BVAL daily average for the year was at 6.34% and ending of the year at 6.99%).
Meanwhile, at the company’s regular board meeting on February 14, 2023, the Board of Directors approved the declaration of ₱0.071 per outstanding common share in cash dividends. This brings the total dividends declared to Php 0.363 based on the cut-off period for year 2022 and translates to an annualized yield of 6.6 percent based on the closing market price as at December 29, 2022 of ₱5.50 per share. The cash dividends will be payable on March 24, 2023 to stockholders on record as of March 3,2023.
With its stable performance in 2022, FILRT remains a reliable and attractive investment option
for those seeking to grow their portfolio.
