Filinvest REIT Corp., the flagship commercial real estate investment trust of the Filinvest Group, reported Wednesday the acquisition of a 2.9-hectare property in Boracay Island, Aklan for P1.05 billion.
The acquisition, the first asset infusion after its maiden share offering in 2021, will expand and diversify FILRT’s portfolio which is composed of 17 office buildings.
FILRT said in a disclosure to the stock exchange the property is owned Filinvest Development Corp. and is being leased by Boracay Seascapes Inc., the building owner of Crimson Resort & Spa Boracay.
The REIT firm said the acquisition would contribute to the company’s income starting January 2023. It will also expand its gross leasable area by 10 percent to 330,448.3 square meters.
FILRT’s total property value upon infusion will rise to P49.5 billion from P48.5 billion.
“We are pleased to announce FILRT’s first asset infusion after our IPO in August last year. This not only increases the distributable income to our shareholders in the immediate term but also supports our goal of delivering stable dividends and increasing the potential for capital appreciation in the longer term. We remain focused on providing attractive returns to our investors,” said FILRT president and chief executive Maricel Brion-Lirio.
FILRT also reported that its board of directors approved the declaration of P0.088 per outstanding common share in cash dividends, maintaining the same level as in the previous quarter.
The declaration brought year-to-date dividends to P0.404 per outstanding common share, or equivalent to an annualized yield of 7 percent.
The cash dividends are payable on Dec. 20 to stockholders on record as of Dec. 1.
FILRT booked a net income of P345 million in the third quarter on the back of rental and other revenues of P822 billion.
Brion-Lirio said while the office leasing segment had its challenges due to emerging trends surrounding remote work, the company managed to maintain an average occupancy level of 88 percent in the third quarter.
Net income for the first nine months reached P1.1 billion, with revenues amounting to P2.5 billion.