FILREIT eyes P1.2 B operating income for this year

Filinvest REIT (FILREIT), the soon-to-list real estate investment trust company of the Filinvest Group, is forecasting a net operating income of P1.2 billion for 2021.

The figure is projected to more than double to P2.6 billion next year, according to FILREIT.

Of the 17 office buildings in its portfolio, FILREIT’s Axis Tower 1 and Vector Three in Filinvest City in Alabang are expected to contribute the most to the net operating income at P174.6 billion and P147.7 billion, respectively.

Revenue and income from the portfolio comprise rental revenue from office, retail, and parking components of the properties, as well as tenant dues for the usage of common areas, aircon, and utilities.

In terms of capital expenditures, FILREIT is pouring in P40 million in capex this year and P84.7 million next year.

“These capital expenditures will upkeep, upgrade, and refurbish the company’s properties. These will be funded through the company’s cash from operating activities,” FILREIT said.

FILREIT is targeting to list on Aug. 12, to become the third REIT to list at the Philippine Stock Exchange after Ayala Land’s AREIT and Double Dragon’s DDMP REIT.

It has set the final offer price at P7 per offer share for a base offer of 1.6 billion common shares and an over-allotment option of up to 163.4 million common shares.

Total proceeds amounting to P12.6 billion will be used for expansion and general corporate purposes.

The property portfolio of FILREIT’s portfolio, meanwhile, consists of 17 Grade A office buildings on prime property totaling over 300,000 square meters of gross leasable area.

The 16 buildings are located in Northgate Cyberzone within Filinvest City in Alabang, while one is in the gateway of Cebu IT Park in Lahug, Cebu City.

FILREIT is optimistic about the prospects of the office sector, including other property asset classes such as logistics and warehousing.

“The potential growth for the logistics industry is seen as foreign manufacturers may likely move out production from China. Also, e-commerce activity increases, which will further increase demand for high grade warehousing. Lastly, even with the overall slowdown of real estate activities in the second quarter of 2020, office inquiries for expansion and flex space increases, which signals strong demand for space,” FILREIT said.

According to FILREIT, the IT-BPM industry sees the most inquiries as the industry remains active and continues to show strong demand for office spaces in Metro Manila and in key provinces like in Cebu, Davao, Laguna, and Pampanga.