Filinvest REIT Corp. (Filreit), the flagship commercial real estate investment trust of the Gotianun Group, said it recorded a net income of P1.31 billion in 2022, a drop of 29 percent from the previous year’s P1.85 billion.
“The office leasing segment had its fair share of new challenges last year brought about by the globally changing workplace environment,” Filreit President and CEO Maricel Brion-Lirio said.
“Closer to home, the implementation of hybrid work set-ups in PEZA [Philippine Economic Zone Authority] zones like our Northgate property affected our leasing patterns. Despite this headwind, FILRT demonstrated resiliency and forged ahead in growing the portfolio.”
Rental and other revenues reached P3.24 billion, the company said.
Average occupancy for the year was 89 percent, including the newly infused Boracay property that was added to the portfolio in December 2022.
Filreit signed new leases totaling 5,087 square meters and renewed 22,891 square meters or 96 percent of expiring leases in 2022.
This year, new letters of intent were signed by traditional and BPO multinational companies to lease almost 9,000 square meters of office space and more than 13,300 square meters or 32 percent of the lease expiries for the year 2023 have already been renewed. The balance is due for renewal during the remainder of the year.
The company in December acquired a prime property with a gross leasable area (GLA) of 29,086 square meters in Boracay, Aklan.
The acquisition resulted in an increase in its portfolio by 9.65 percent in GLA terms. The Boracay property, which is leased to the well-regarded Crimson Resort and Spa Boracay, broadens Filreit’s income profile mix beyond office leasing and into the hospitality sector.
“Moving forward, FILRT will continue to focus on diversifying its portfolio to improve the revenues of its existing prime office assets and to ultimately boost dividends for its shareholders,” the company said.