FILINVEST REIT Corp. (FILRT) announced on Tuesday an attributable net income of P1.05 billion for 2023, as the average occupancy dropped to 83%.

The company reported an attributable net income of P1.305 billion for 2022, which is “not comparable [with 2023] following the shift in accounting method from the cost method to the fair value method of valuing investment properties for financial reporting purposes effective Jan. 1, 2023,” Filinvest Development Corp. Senior Corporate Communications Manager Michaella B. Ullado said in an e-mail.

“If we exclude the net fair value change in investment properties, FILRT posted a net income of P1.28 billion in 2023 versus P1.66 billion in 2022,” she also said.

In a disclosure, FILRT reported a 7.38% drop in revenues to P3 billion from P3.239 billion in 2022.

“Average occupancy… dropped [last year], largely brought about by the rightsizing of multinational BPO (business process outsourcing) tenants due to the hybrid work setups,” Ms. Ullado said.

In a statement to the stock exchange, FILRT announced that it was diversifying its tenant mix, adding both traditional tenants and co-working locators.

Its current tenant mix is comprised of 78% multinational BPO companies, 11% traditional office and co-working, 11% hospitality services, and small retailers.

As of December 2023, FILRT renewed 31,835 square meters (sq.m.), or 77% of its expiring leases in 2023.

It has also signed new leases for 20,139 sq.m., including 2,630 sq.m., in the fourth quarter, stemming from the expansion of two BPO companies.

“The new leases that we have in 2024 have been encouraging and we are optimistic that leasing activities will improve further in the second half of the year,” FILRT President and Chief Executive Officer Maricel Brion-Lirio said. — Aubrey Rose A. Inosante


Note: This story has been updated.