Filinvest REIT eyes acquisition of over 532,000 sqm GLA in near to medium term

Filinvest REIT Corp. (FILRT), sponsored by Filinvest Land Inc. (FLI), is hoping to expand its portfolio further as leasing activities are expected to continue to improve in the second half of the year, after signing 2,630 square meters of new leases in the fourth quarter of 2023.

In a regulatory filing on Tuesday, FILRT said FLI has about 532,000 square meters of office and retail gross leasable area (GLA) in key central business districts that could potentially be acquisitions in the near to medium term.

The company has signed new leases totaling 20,139 square meters as of end-December 2023, versus the 5,087 square meters signed in 2023. This includes 4,512 square meters of new traditional tenants.

“The new leases that we have in 2024 have been encouraging and we are optimistic that leasing activities will improve further in the second half of the year,” FILRT president and chief executive officer Maricel Brion-Lirio said.

“Despite some challenges in the market conditions, we remain committed to expanding our portfolio and steadfast in our goal to significantly increase dividends for our shareholders in the long term,” she added.

FILRT said there were also some 31,385 square meters of leases renewed last year, equivalent to 77% of the 41,110 square meters of expiring leases for 2023.

Its tenant mix was 78% multinational business process outsourcing (BPO) companies, 11% traditional office and co-working, 11% hospitality, and the remainder taken up by retail tenants.

The REIT currently has over 330,000 square meters of gross leasable area, with 16 of the buildings in the Northgate Cyberzone in the 244-hectare mixed-use and integrated Filinvest City in Alabang.

Its sponsor, Filinvest Land Inc., reported a 32% growth in it net income for the both the third quarter and first nine months of 2023, citing the sustained demand for homes during the period. —KBK, GMA Integrated News