‘Boracay property broadens income profile mix of FILRT’

Filinvest Reit Corp. (Filrt), the real estate investment trust of the Gotianun’s Filinvest Group, on Wednesday said its acquisition of Crimson Resort and spa in Boracay has broadened its income profile mix beyond office leasing.

Maricel B. lirio, FILRT president and CEO, said the company is focused on diversifying its portfolio to boost dividends for its shareholders while improving the revenues of its existing prime office assets.

“The acquisition of the Boracay property not only expanded FILRT'S asset types, but also broadens its income profile, allowing us to diversify beyond office leasing-driven business districts and into hospitality,” lirio said.

FILRT said in November that it has bought the 2.9 hectares of land owned by Filinvest Development Corp. (FDC) in Boracay Island for P1.05 billion in cash.

The land is being leased by Boracay Seascapes Inc., the building owner of Crimson Boracay and a unit of FDC. The property has gross leasable area of 29,086 square meters and increased FILRT'S portfolio gross leasable area by more than 9 percent.

The property is located at Station Zero, which is in the more exclusive section of Boracay and has its own private beach front.

FREIT Fund Managers Inc., which discloses the company’s quarterly performance, said the company’s strategy is to expand in key central business districts in Metro Manila and towards major regional hubs or key cities in the Philippines with high and stable occupancy from income-generating prime real estate properties.

“New asset acquisitions will continue to focus on Grade A commercial properties and will expand beyond office leasing to include the addition of retail, leisure, residential and industrial properties into its portfolio,” it said.

The acquisition of the Boracay property is a key step towards the direction the company has expressed in its latest investment strategy, it said.

Filrt was able to deliver a 7.35 percent dividend yield for its investors, based on total dividends paid in 2022 on year-end closing price of P5.50 per share.

The company was able to sustain its occupancy and rental rates per square meter and was well above the industry rates in locations where the properties are located, namely in Alabang and Cebu.

Meanwhile, at the company’s regular board meeting on February 14, its board approved the declaration of P0.071 per outstanding common share in cash dividends.

This brings the total dividends declared to P0.363 based on the cut-off period for year 2022 and translates to an annualized yield of 6.6 percent based on the closing market price at P5.50 per share as of December 29. The cash dividends will be payable on March 24, to stockholders on record as of March 3, the company said.