Filinvest REIT Corporation (FILRT), the Gotianun group’s real estate investment trust, reported a 20.5 percent drop in net income to P561 million in the first half of 2023 from P706 million in the same period last year.

In a disclosure to the Philippine Stock Exchange, the firm said earnings were achieved on the back of rental and other revenues of P1.58 billion in the first half of 2023, 3.7 percent lower than the P1.64 billion reported in the same period last year.

“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,” said FILRT President and CEO Maricel Brion-Lirio.

She noted that, “more locators are now experiencing the advantages of working back in the office from increased productivity supported by a vibrant workplace and community.”

The Board of Directors of FILRT has approved the dividend declaration to all stockholders amounting to P0.071 per outstanding common share, maintaining the same level as the previous two quarters.

The cash dividends will be payable on Sept. 20, 2023 to stockholders on record as of Aug. 31, 2023.

“We remain steadfast in our goal to deliver stable dividends and provide attractive returns to our investors,” said Brion-Lirio. 

She disclosed that, “FILRT has signed in the past month over 7,200 square meters of office space, bringing total new signed leases to over 17,500 square meters this year coming from a mix of BPO and co-working 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,” said Brion-Lirio.

FILRT has also renewed 29,427 square meters or 72 percent of expiring leases in 2023 with another 2,408 square meters or five percent that have signed renewal Letters of Intent. 

Both new leases and renewals were closed at higher rates against current transacted rates in the Alabang area according to the Colliers second quarter 2023 market report. 

FILRT’s Weighted Average Lease Expiry (WALE) is 6.9 years as of end of the first half of 2023. Average occupancy for the first half of the year was 84 percent, which is better than market occupancy of 81 percent as per Colliers’ second quarter 2023 market report.

FILRT is diversifying its tenant mix with traditional tenants and co-working locators with whom FILRT has signed over 4,000 square meters to date. Current tenant mix is comprised of 79 percent multinational BPO companies, 10 percent resort following the infusion of the Boracay property, 10 percent traditional office and co-working, and the small remainder taken up by retail tenants.