Filinvest REIT Corp., the real estate investment trust (REIT) of the Filinvest Group, said it posted a net income P706.03 million in the first half, down by a third from last year’s P1.05 billion, partly as a result of the decline in rental revenue.
The company also said its net income in the second quarter dipped by 20 percent to P323.67 billion from the previous P411.17 billion due to higher costs and expenses, primarily utilities.
“We are in a period of transition in the office leasing business following the re-opening of the economy and the new trend of work on site and work at home hybrid setup. Many of our locators’ expansion plans were still on hold during the first half of the year although we continued to lock in the expiring leases,” said company president and CEO Maricel Brion-Lirio.
Its second quarter gross revenues fell 20 percent to P817.65 million from last year’s P919.47 million. This brings the company’s first half revenues to P1.64 billion, 13 percent lower from the previous year’s P1.9 billion.
“The decrease in rental revenue is primarily due to the transfer of projects to FLI [Filinvest Land Inc.], in year 2021; the company generated P171.6 million from the transferred projects,” the company said in its report.
As of the end of the first half, the company said it has renewed and signed about 20,380 square meters, or 86 percent of the leases expiring in 2022. About 4 percent did not renew and the balance of 10 percent is under negotiation with a high probability of renewal, it said.