Filreit wants share prices to rise before acquiring assets

FILINVEST REIT Corp. (Filreit), the real estate investment trust (REIT) of the Gotianun Group, said it 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 Filreit that are subject to a favorable exchange price in order to have a property-for-share swap that is dividend accretive for our shareholders,” company president and CEO Maricel Brion-lirio said.

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

She said that the company’s sponsor Filinvest Land Inc. (FLI) alone has about 532,000 square meters of office and retail gross leasable area in key central business districts that are potential acquisitions for Filreit in the near to medium term.

Potential acquisitions can also come from the pipeline of assets owned by FLI’S parent company, Filinvest Development Corp.

“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,” Lirio said.

Meanwhile, as part of its strategies, she said the company 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. The company said it 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,” Lirio said.

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 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,” Lirio said.

“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.”