FILINVEST REIT Corp. (FILRT), the commercial real estate investment trust (REIT) of the Filinvest group, has approved the acquisition of 2.9 hectares of land in Boracay for P1.05 billion.
The purchase will be through a deed of sale with its parent company Filinvest Development Corp. (FDC), the Gotianun family’s holding firm with subsidiaries in diversified businesses including real estate, mall, theater, and resort hotel operations.
“We are pleased to announce FILRT’s first asset infusion after our [initial public offering] in August last year,” FILRT President and Chief Executive Officer Maricel Brion-Lirio said in a press release.
“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,” she added.
The FDC-owned land is currently being leased to its subsidiary, Boracay Seascapes, Inc., which is the owner of Crimson Resort & Spa Boracay.
According to the press release, the infusion will expand FILRT’s portfolio by 29,086 square meters (sq.m.) or by 10% and will increase its total property value to P49.5 billion.
Revenues from the land acquired will directly contribute to the listed REIT firm starting January 2023 along with the earnings generated from its existing 17 buildings.
Crimson Resort & Spa features 192 keys, 23 pool villas, a grand ballroom, and four food and beverage outlets.
Meanwhile, the company approved a dividend declaration of around nine centavos per outstanding common share which is at the same level as in the second quarter.
The declaration brought the REIT’s year-to-date dividends to 40 centavos per outstanding common share, which is equal to an annualized yield of 7%.
The cash dividends will be payable on December 20 and will be recorded on Dec. 1.
FILRT building assets consist of 17 Grade A and LEED gold-certified office buildings with over 300,000 sq.m. of gross leasable area.
Earlier this week, the company’s parent firm reported a 46.8% decline in FILRT’s third-quarter net income to P344.92 million. The unit’s top line was lower by 1.7% to P822.19 million from P836 million a year ago.
For the nine-month period, its net income declined by 38.1% to P1.05 billion from P1.7 billion a year ago. Revenues stood at P2.46 billion, a 10% decrease from P2.74 billion last year.
On the stock market on Wednesday, FILRT shares were unchanged at P5.72 each. — Justine Irish D. Tabile