Filinvest REIT Corp., the real estate investment trust of the Gotianun group, reported income in the first half of the year growing 7 percent to P601 million from last year’s P561.3 million.
Revenue for the period totaled P1.4 billion, a contraction of 11 percent from the year ago period of P1.58 billion, resulting from the drop in occupancy in the first quarter due the rightsizing of some tenants doing hybrid work.
This was partially offset by the 3 percent drop in cost and expenses to P643 million.
Its portfolio of 17 office buildings and a resort lot totaling 330,448 square meters reported average occupancy of 79 percent in the first half, lower than the year ago of 84 percent.
FILRT continues to rebuild its occupancy rate and at the end of June increased this to 81 percent.
The company reported transitioning into a more balanced tenant base by signing new traditional companies to replace the BPO tenants that have downsized due to the shift to work-from-home or hybrid set-ups of its employees.
“We are pleased with the steady improvement in occupancy of FILRT. Our deliberate efforts in rebuilding the tenancy of our office buildings are starting to pay off. We have been signing fresh names, particularly multinational BPO new entrants in the Philippines from Singapore and New Zealand, to name a few, as well as traditional companies,” Maricel Brion-Lirio, president and CEO, said.
FILRT claims leadership in Alabang where 16 of the 17 new buildings are located. FILRT reported higher occupancy than the Alabang market of 73 percent as reported by Colliers International at its Q2 2024 Office market report. FILRT also closed new leases at the upper end of the ₱500-750 lease rate per square meter in the Alabang area.
As at end-June 2024, FILRT signed 13,126 square meters of new leases and 20,742 square meters more letters of intent.
On tenant retention, over 26,204 square meters or 46 percent of expiring leases this year have been renewed, with another 16,270 square meters or 29 percent awaiting finalization of the renewal contract.
FILRT has deliberately diversified its tenant mix with the addition of traditional tenants and co-working locators.
The current tenant mix consists of 76 percent multinational BPO companies, 12 percent traditional and co-working spaces, 11 percent hospitality, and the balance in retail.
FILRT has no POGO exposure and has been free of POGOs since the second quarter of 2022.
