FILINVEST REIT Corp. (FILRT), the real estate investment trust of Filinvest Land, Inc, on Monday reported a net income of P561 million for the first half, a 20.5% decline from P706 million a year earlier.
“Despite the challenges faced by the office leasing sector in the past 12 months brought about by the rightsizing and recalibrating of multinational tenants’ hybrid work setups, the sector is resilient and headed towards recovery,” FILRT President and Chief Executive Officer Maricel Brion-Lirio said in a stock market disclosure.
“More locators are now experiencing the advantages of working back in the office from increased productivity supported by a vibrant workplace and community,” she added.
The company recorded a topline of P1.58 billion, 3.7% lower than the P1.62 billion in the same period last year.
Ms. Brion-Lirio said that the company has added over 7,200 square meters (sq.m.) of office space, bringing its total leases for the year to about 17,500 sq.m. coming from a mix of co-working and business process outsourcing tenants.
“We are also in the process of finalizing an additional 8,400 square meters that are expected to materialize in the next quarter while discussions with other BPO and traditional companies are ongoing,” she added.
The company said that it has also renewed 72% or 29,427 sq.m. of expiring leases in 2023, with about 2,408 sq.m. signing their letter of intent.
It added that the company’s weighted average lease expiry is 6.9 years as of the first semester, with the average occupancy at 84%.
FILRT said that it is planning to diversify its tenant mix with traditional and co-working locators. To date, it has signed over 4,000 sq.m.
The firm’s tenant mix is mainly made up of BPOs at 79%, and resorts at 10% after the infusion of the Boracay property. Traditional and co-working tenants make up 10%, with retail tenants accounting for the rest.
“FILRT has zero POGO (Philippine offshore gaming operators) exposure,” the company said.— Adrian H. Halili
