FILRT profits up despite lower revenues
Filinvest REIT Corp. (FILRT) reported an 8 percent improvement in net income to P1.05 billion in the first half of 2021 from the same period last year despite lower revenues.
In a disclosure to the Philippine Stock Exchange, the firm said this was on the back of a 13 percent drop in revenues that reached P1.96 billion from P2.26 billion in the first half last year and costs and expenses that were kept at P863 million.
The increase in net income was further supported by lower provisioning for taxes mainly caused by the derecognition of projects transferred to parent company, Filinvest Land, Inc. (FLI).
“We are pleased with the results of our first-half performance considering the general economic climate,” said FILRT Chairperson Josephine Gotianun-Yap.
She added that, “The BPO sector, which accounted for 90 percent of our tenants at the end of June 2021, remains to be resilient.”
“We are also happy to note that we are on track to meeting our target distributable income, the basis of forthcoming quarterly dividend distributions, that we promised our potential shareholders during the initial public offering (IPO) of FILRT,” Gotianun-Yap said.
FILRT’s occupancy rate at the end of the first half of the year was recorded at 89 percent. The company anticipated and forecasted the decline due to the further reduction of its remaining POGO tenants.
This brings its POGO tenancy down to 1.5 percent as of the end of the second quarter from the previous quarter’s 2.8 percent of the occupied gross leasable area (GLA).
New multinational BPO tenants and ROHQ office tenants are taking up the vacated spaces, albeit with delays due to ECQ restrictions.
FILRT’s portfolio consists of 17 Grade A office buildings totaling over 300,000 square meters of GLA, which include sustainability features.
Of these, 16 of the 17 buildings are in Northgate Cyberzone in Filinvest City in Alabang, a PEZA Special Economic Zone and IT park and the first central business district in the country to receive Gold Certification from LEED® v4 for Neighborhood Development.