The Gotianun Group’s real estate investment trust Filinvest REIT Corporation (FILRT) is waiting for the equities market to recover and for its stock price to improve before acquiring more assets via share swap.

“A number of assets have been identified for infusion into FILRT that are subject to a favorable exchange price in order to have a property-for-share swap that is dividend accretive for FILRT shareholders,” said FILRT President and CEO Maricel Brion-Lirio during the firm's annual stockholders' meeting today, April 17, 2024.

She added that, “as the share price improves, we target to expand the asset base with acquisition of new assets from our sponsor Filinvest Land Inc. and our sponsor’s parent company Filinvest Development Corporation.”

“FILRT’s future growth will be driven by a pipeline of high-value and green-designed assets that attract tenants who share Filinvest’s sustainability goals,” said Brion-Lirio. 

She noted that, “Our Sponsor Filinvest Land, Inc. alone has about 532,000 square meters of office and retail GLA (gross leasable area) in key CBDs (central business districts) that are potential acquisitions for FILRT in the near to medium term.” 

Potential acquisitions can also come from the pipeline of assets owned by our FLI’s parent company, FDC.

“We look forward to a more robust global economy in 2024 and the exciting opportunities ahead for Filinvest REIT. We are fully committed to expanding our assets, providing stable returns, and delivering value to our shareholders,” Brion-Lirio said.

Meanwhile, as part of its strategies, she said FILRT has been deliberate in diversifying its tenant mix with the addition of traditional tenants and co-working locators. 

Tenant mix at the end of 2023 is comprised of 78 percent multinational BPO companies, 11 percent traditional office and co-working, 11 percent hospitality, and the small remainder taken up by retail tenants. FILRT remains free of POGO exposure.

“As part of our deliberate strategy, we are diversifying our tenant mix by reaching out to more traditional locators such as government agencies, wellness centers, schools of training centers, and co-working space operators,” Brion-Lirio said.

Given the heightened importance of sustainability in tenants’ office requirements, FILRT has been in the forefront of incorporating green features into its portfolio. 

This is continuously being done through retrofitting, shifting to renewable or clean energy, implementing efficient water systems, and securing certifications to ensure baseline standards are met.

For its energy strategy, the firm has a two-pronged approach: energy efficiency and the use of renewables. 

Its building designs have provisions for natural and LED lighting, natural ventilation where feasible and the use of variable frequency drives. The buildings in Filinvest City are connected to the largest district cooling system in the Philippines which substantially reduces energy consumption and carbon emissions by as much as 40 percent.

“We are also pleased to report that in 2023, eight FILRT buildings enjoy 100 percent supply of renewable electricity. Electricity sourced from renewables jumped to 45 percent in 2023 from 32 percent in 2022 and 26 percent in 2021. 

“We continue to work in further increasing the use of renewables this year. Since January 2024, additional five buildings have already been added to the list of those that enjoy 100 percent renewables, constituting 13 out of the 17 office buildings in the portfolio,” she noted.