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Marcos directs House panel to remove FIRB’s power to grant incentives — lawmaker

PRESIDENT Ferdinand R. Marcos, Jr. wants the power to grant and approve tax incentives to be returned to investment promotion agencies, a lawmaker said. — PHILIPPINE STAR/KRIZ JOHN ROSALES

By Beatriz Marie D. Cruz, Reporter

PRESIDENT Ferdinand R. Marcos, Jr. wants the power to grant and approve tax incentives to be returned to investment promotion agencies (IPAs), according to the House Ways and Means Committee chairman.

Albay Rep. Jose Ma. Clemente S. Salceda said on Tuesday the Ways and Means Committee “wholeheartedly supports the President’s direction to ‘wind down’ the power of the Fiscal Incentives Review Board (FIRB) to grant and approve fiscal incentives.”

“The President wants to make the approval process more responsive. And we agree fully. So, the committee has reverted the power to grant and approve incentives to the investment promotion agencies,” he said in a statement.

Presidential Communications Office chief Cheloy Velicaria-Garafil did not immediately reply to a Viber message seeking comment.

The House Ways and Means Committee will include this provision in the CREATE MORE bill, which seeks to fix conflicting provisions of the Republic Act (RA) No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

Signed into law in March 2021, the CREATE Act had expanded the powers of the FIRB, which included the authority to approve applications for tax incentives. IPAs, on the other hand, can greenlight tax incentives for registered projects or activities with investments of P1 billion and below.

Mr. Salceda, however, said the FIRB will maintain its role in policy formulation, standard-setting, and oversight, as well as grant off-menu incentives.

Finance Assistant Secretary Juvy C. Danofrata, who also heads the FIRB Secretariat, said the board’s duty is to ensure “fiscal responsibility” when granting exemptions or tax incentives.

“Before CREATE, there’s really no conscious effort on the part of anybody except I think the DoF (Department of Finance) to look into what is the cost and what is the benefit [of tax incentives and exemptions] to the economy,” Ms. Danofrata said during the committee meeting.

“As government, we want to make sure that when we grant the tax incentives, we look at the deficit for instance, we look at how these incentives is going to help the country or the economy so that all of the revenue losses will still be compensated by some other returns to the society and economy,” she added.   

Adolfo Jose Montesa, researcher at the Action for Economic Reforms (AER), said the CREATE MORE bill, if approved, would have the effect of “decapitating, essentially beheading the FIRB.”

“In particular, the bill intends to empower the president to motu propio grant incentives packages, paving the way for investment promotion agencies to circumvent the FIRB. This defeats CREATE’s purpose and principle of strengthening governance or decision making of fiscal incentives through a rigorous, fair and transparent system,” Mr. Montesa told the panel.

However, Mr. Salceda said in a statement that the panel is considering removing the proposed motu proprio power of the President “to grant tax incentives, to maintain the spirit of a performance-based and standards-based tax incentives system.”

Eleanor L. Roque, tax principal of P&A Grant Thornton, said removing the FIRB’s powers to grant and approve fiscal incentives will only benefit big projects.

“Currently, only projects with investment capital of P1 billion or more are evaluated and approved by the FIRB… So the change in the rules will impact big projects only,” Ms. Roque said in a Viber message. “Any change that will cut the processing time to make the application process streamlined and efficient is a welcome development to investors.”

According to Mr. Salceda, the House panel will approve amendments to the CREATE Act next week and will send the measure to the Senate by end-November.

“We were prepared to do it today, but the Office of the President requested for a bit more time to finalize its comments,” he added.

The CREATE MORE bill’s provisions include reducing corporate income tax to 20% for those under the enhanced deduction regime; a 200% deduction for power cost, which may be accumulated during the availment of income tax holiday; a 200% deduction for trade fair and trade mission expenses, and the application of the net operating loss carryover five years after the end of the income tax holiday period.

The bill also proposes a uniform 1.5% registered business enterprise local tax to be collected by IPAs “in lieu of all local impositions in order to reduce the point of contact with local government units.”

Mr. Salceda said the information technology and business process outsourcing (IT-BPO) sector will also be allowed to “fully undertake” work-from-home schemes.

“This will allow one of the country’s most durable sectors to remain globally competitive. The world has moved towards hybrid, and it does not make sense to limit ourselves in this area,” he said.

Finance Secretary Benjamin E. Diokno earlier said that amendments to the CREATE law will improve the country’s investment climate.

“The proposed amendments to the CREATE Act will enhance the incentive system, clarify the rules and policies on the grant and administration of incentives to qualified enterprises, and address issues affecting the country’s investment climate,” Mr. Diokno said in an Oct. 25 statement.

PLDT Q3 income down, year-to-date profit up 1.4%

PANGILINAN-LED PLDT Inc. reported P9.43 billion in attributable net income for the third quarter (Q3), down 12% from P10.71 billion a year earlier, amid a challenging economic environment.

Still, the company considers its showing for the period as robust, said Alfredo S. Panlilio, president and chief executive officer of PLDT, at the company’s press briefing on Tuesday.

“We had a very good third quarter. For some reason, it is still very strong,” he said, adding that the company recorded strong revenues for the period.

In the third quarter, the company’s combined revenues rose by 1.9% to P52.32 billion from P51.35 billion in the same period last year.

Service revenues accounted for the bulk of the quarter’s combined revenues at P50.50 billion, up 2.6% from P49.22 billion a year ago. Non-service revenues declined by 14.6% to P1.82 billion from P2.13 billion previously.

Cost and expenses declined by 1.6% to P38.25 billion from P38.87 billion a year earlier.

Year to date, the company saw its attributable net income climb by 1.4% to P27.88 billion from P27.50 billion a year ago as its service revenues reached a historic high, Mr. Panlilio said.

For the nine months to September, the company recorded combined revenues of P156.36 billion, up 2.8% from P152.13 billion in the same period last year, its financial report showed.

Service revenues contributed the biggest share, accounting for P149.75 billion, a 2.8% increase from P145.72 billion last year.

Non-service revenues rose 45.3% to P6.42 billion from P4.42 billion in the same period in 2022.

“Now more than ever, we are witnessing how the power of technology and digital services impact Filipinos’ standard of living, with innovations bringing convenience, comfort, productivity, and security to improve overall quality of life. Our mission at PLDT is to enable our countrymen with the tools and connectivity needed to enhance their digital lifestyles,” Mr. Panlilio said.

PLDT is optimistic about ending the year with a robust performance, said Manuel V. Pangilinan, its chairman, adding that he is positive that the company will be able to perform well amid a “tough economic environment.”

“The company has done reasonably well against a tough inflationary environment, relatively high interest rates, and a slowing economic growth,” he said.

For the nine-month period, PLDT’s EBITDA or earnings before interest, taxes, depreciation, and amortization increased to an all-time high of P78.36 billion from P75.52 billion last year, which translated to a margin of 52%.

“The 52% is we’re pushing for more revenues for managing costs to sustain the EBITDA margin. We’re targeting high. Hopefully, we can reach 54-55% by increasing revenues,” Mr. Panlilio said.

Meanwhile, Mr. Pangilinan said that Metro Pacific Investments Corp. (MPIC) is in talks with San Miguel Corp. (SMC) on a possible collaboration or a joint venture that will focus on tollways.

“Yes, we are looking at other areas where we can cooperate, for example in the case of tollways. If we manage to combine two tollways, I think it will be a candidate to list in the stock exchange and it will be a significant company,” he said.

Metro Pacific Tollways Corp. (MPTC) is the tollways unit of MPIC.

Last month, Ramon S. Ang, president and chief executive officer of SMC, was elected to the board of MPIC after making an indirect investment in his personal capacity.

Separately, a unit of MPTC — MPCALA Holdings, Inc. — announced that the 3.9-kilometer Silang (Aguinaldo) Interchange of the Cavite-Laguna Expressway (CALAX) will open on Wednesday.

The interchange is deemed crucial in decongesting highways in Cavite as it is expected to cater to an additional 5,000 motorists per day.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

Petron earnings rise 16% on sustained volume growth

PETRON CORP. reported a nine-month consolidated net income of P9.5 billion, a 16% increase from last year’s P8.2 billion, driven by sustained volume growth.

In a regulatory filing on Tuesday, the listed oil company said its consolidated revenues fell by 6.9% to P587.3 billion from the P631.1 billion previously due to an oil price correction from “extraordinarily elevated levels” brought on by the Russia-Ukraine conflict.

“We are seeing consistent growth in all areas of our business. Our wide reach, superior product quality, and reliable service have allowed us to sustain our good performance throughout the year, and maintain or even strengthen our market share in high-demand sectors,” Petron President and Chief Executive Officer Ramon S. Ang said.

Petron said its operating income reached P27 billion, up 64% from P16.5 billion last year, driven largely by strong volume growth, allowing it to “absorb the more than 50% increase in financing cost.”

Nine-month sales volume increased 16% to 93.6 million barrels from 80.4 million barrels in the same period a year ago.

For Petron’s Philippine operations, sales volume went up by 20% to 42.7 million barrels from 35.5 million barrels last year.

Meanwhile, Petron’s sales volume from its commercial business jumped by 12% as of September as it secured sales agreements while renewing ties with major airlines and flag carriers throughout the period.

Retail sales from the Philippines and Malaysia increased by 8% driven by higher demand for Petron’s gasoline and diesel products.

“For nine decades, we have been more than just a brand… we have stood strong as the industry leader, creating opportunities for success defined by our value of malasakit (concern),” Mr. Ang said.

Petron, which is also a leading player in the Malaysian market, has a combined refining capacity of nearly 270,000 barrels a day. The company operates about 50 terminals in the region and has around 2,700 service stations where it sells gasoline and diesel.

The company has yet to report financial figures specific to the third quarter.

On Tuesday, shares in the company closed at P3.25 each. — Sheldeen Joy Talavera

Bloomberry income jumps 20% amid higher revenues 

RAZON-led Bloomberry Resorts Corp. logged a 20% rise in its net income for the third quarter as net revenues increased.

In a regulatory filing on Tuesday, Bloomberry said its consolidated net income for the July-to-September period rose to P1.9 billion from P1.5 billion in the same quarter a year ago.

Bloomberry Chairman and Chief Executive Officer Enrique K. Razon, Jr. said the third quarter showed the “resilience of the Philippine gaming market.”

Consolidated net revenues in the third quarter jumped 8% to P10.9 billion, while consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 15% to P4.2 billion. 

Total gross gaming revenues (GGR) at the company’s Solaire Resort Entertainment City dropped 0.5% to P13.3 billion from P13.4 billion last year, while VIP rolling chip volume, mass table drop, and electronic gaming machine (EGM) coin-in, logged P146 billion, P13.9 billion, and P91.2 billion, equivalent to year-over-year growth of 10%, 31%, and 7%, respectively.

“While volumes across all gaming segments continued to grow from the previous year, fluctuations in the VIP and mass tables hold rate led to marginally lower total GGR,” Bloomberry said. “Despite the quarter’s weaker economic climate, domestic gaming demand remained strong.”

Bloomberry added that Solaire Korea’s Jeju Sun Hotel and Casino posted P14.7 million in GGR in the third quarter, up P10 million from the previous quarter.

The company’s consolidated non-gaming revenues during the third quarter rose 23% to P2.3 billion.

“During the quarter, we saw the resilience of the Philippine gaming market as gaming volumes in our mass tables and EGM segments continued to expand on a sequential and year-over-year basis, despite the quarter’s weaker-than-anticipated economic climate,” Mr. Razon said.   

“These mass-oriented gaming segments as well as our hotel, food and beverage, retail, and other segments continue to perform well above their pre-pandemic run rates and are testaments to the strength of our domestic customer base,” he added.

Bloomberry’s nine-month consolidated net income grew 106% to P8.3 billion from P4 billion a year ago.

“After removing the impact of a P356.6 million one-time gain on sale from the disposition of an asset in the second quarter, consolidated net income would have increased by 97%,” Bloomberry said.

Bloomberry said its consolidated net revenues climbed 33% to P36.5 billion while its consolidated EBITDA went up 48% to P15.4 billion.

The company’s consolidated GGR increased 26% to P44.5 billion from P35.4 billion last year.

“VIP, mass table, and EGM GGR were P15.1 billion, P14 billion, and P15.3 billion, representing year-over-year growth of 29%, 14%, and 35%, respectively. Strong domestic demand continued to prop up mass tables GGR and EGM GGR to well above nine months 2019 levels at 114% and 125%, respectively,” Bloomberry said.   

Bloomberry’s consolidated non-gaming revenues in the first nine months rose 42% to P6.4 billion.

Meanwhile, Mr. Razon said that Bloomberry is looking to capitalize on its Solaire Resort North in Quezon City, which is being constructed and is set for completion by March next year.

“With the opening of our second property next year, we aim to capitalize on this domestic strength. At this time, the construction of Solaire Resort North is on schedule to be completed by March 2024,” Mr. Razon said. 

“We anticipate that Solaire Resort North will strengthen our market leadership position in the Philippines and raise the regional competitiveness of the Philippine gaming industry to new heights,” he added.

Shares of Bloomberry at the local bourse improved 26 centavos or 2.79% to P9.58 apiece on Tuesday. — Revin Mikhael D. Ochave

GSIS subscribes to Alternergy’s preferred shares for P1.45 billion

STATE PENSION fund Government Service Insurance System (GSIS) has subscribed to P1.45 billion worth of perpetual preferred shares of Alternergy Holdings Corp., the listed renewable energy company said on Tuesday.

“We are deeply honored to have GSIS as a cornerstone investor in Alternergy,” said Alternergy Chairman Vicente S. Pérez, Jr. in a media release.

He said the state agency’s support would hasten Alternergy’s rollout of its “triple play” portfolio of wind, solar and run-of-river projects, “in line with the mission of GSIS in sustainable nation building.”

The company said the subscription is through its Perpetual Preferred Shares 2 Series A via a private placement.

Alternergy President Gerry P. Magbanua said GSIS’ equity infusion “will significantly boost” the company’s equity base as part of its medium-term capital-raising program after its initial public offering (IPO) in March.

The company previously said it had allocated P720 million from the IPO proceeds to the predevelopment of six renewable energy projects with 183 megawatts (MW) of capacity covering wind, solar, and hydropower sources.

“Our growing commitment to sustainability propels us to build a solid investment portfolio of renewable energy (RE) infrastructure projects. Alternergy’s strong emphasis on RE complements and supports this commitment,” GSIS President and General Manager Jose Arnulfo A. Veloso said.

The energy company said Investment & Capital Corp. of the Philippines (ICCP) served as the financial adviser and sole placement manager for the private investment.

The private placement is targeted this year subject to certain regulatory approval by the Securities and Exchange Commission, it said.

“We are proud and honored to continue to support Alternergy as an emerging renewable energy player, and very thankful to the GSIS for its continued support,” ICCP Chairman and Chief Executive Officer Valentino S. Bagatsing said.

In October, Alternergy said that it had obtained shareholder approval for the reclassification of its preferred shares of about 1.48 billion in a move aimed at raising capital for various projects.

The shares will be subdivided into two classifications, namely: “Perpetual Preferred Shares 1” amounting to about 1.18 billion; and nonvoting “Perpetual Preferred Shares 2” for the remaining 300 million.

The 300 million shares are broken down into Series A, B, and C of 100 million perpetual preferred shares per series.

For the first half, Alternergy registered a consolidated net income of P38 million, reversing its P145.2 million net loss in the same period last year.

Alternergy is targeting to develop up to 1,370 MW of renewable energy sources such as onshore and offshore wind, solar, and run-of-river hydropower.

At the local bourse on Tuesday, shares of the company went up by two centavos or 2.41% to close at P0.85 apiece. — Sheldeen Joy Talavera

San Miguel beer unit reports 20% climb in 9-month income to P19B

THE brewing unit of Ang-led San Miguel Corp. (SMC) recorded a 20.2% increase in its nine-month consolidated net income to P19.4 billion due to higher domestic and overseas sales volumes. 

In a statement on Tuesday, San Miguel Brewery, Inc. (SMB) said its consolidated revenues increased 9.4% to P108.3 billion from P99 billion a year ago, while its consolidated operating income climbed 8.5% to P24.1 billion. 

“SMB posted strong results for the first nine months of the year, driven mainly by higher volumes from both domestic and international operations, and a more positive business environment,” the company said.    

According to SMB, its domestic beer volumes expanded by 4.3%, led by “dynamic brand campaigns, targeted sales programs and a sustained economic recovery that saw more markets reopening amidst the backdrop of rising inflation and living costs.”

The company added that its international sales rose 8.9% due to the stronger performance of its export business, as well as growth in the Hong Kong and South China markets.

On Tuesday, shares of SMB’s parent firm, SMC, rose P1.60 or 1.56% to P104 apiece. — Revin Mikhael D. Ochave

Globe secures P12-B loan from three banks 

GLOBE Telecom, Inc. said it had secured funds from a loan facility amounting to a total of P12 billion which it will use to fund its capital expenditures (capex).

In a stock exchange disclosure on Tuesday, the company said it signed the term loan with Bank of the Philippine Islands, China Banking Corp., and  Robinsons Bank Corp. for P3 billion, P5 billion and P4 billion, respectively.

Aside from capex, proceeds from the loan will also be used to fund debt refinancing and general corporate requirements, Globe said.

In the nine months to September, the company spent P54 billion in capex, which it said is about 27% lower than last year’s level. For the year, it has said that it is allocating about $1.3 billion for capex.

Majority of its capex or about 91% was allocated for data requirements to ensure uninterrupted data access and solutions, it said.

“This effort to reduce its capex spending is in line with Globe’s focus on capital efficiency and optimization,” Globe said.

Globe is targeting to expand and enhance its network while also committing to climate action strategies.

At the local bourse on Tuesday, shares in the company climbed by P8 or 0.45% to end at P1,770 apiece. — Ashley Erika O. Jose

Balai ni Fruitas net income up 92% 

LISTED bakery operator Balai ni Fruitas, Inc. said its net income in the third quarter rose 92% on the back of higher revenues.

In a stock exchange disclosure on Tuesday, Balai ni Fruitas said its third-quarter net income nearly doubled to P16.3 million from P8.5 million a year ago.

The company’s third-quarter revenues rose 55% to P138 million while its earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed 68% to P28 million.

For the nine-month period, Balai ni Fruitas posted a 77% jump in its net income to P41.1 million from P23.2 million in 2022. Its net margin also expanded to 11% compared to 10% a year ago.

“The constant growth is fueled by the continuous store network expansion and improved retail performance,” Balai ni Fruitas said.

The listed firm’s revenues from January to September increased 65% to P387 million while EBITDA rose 62% to P74 million.

Balai ni Fruitas said it implemented price increases, broadened its supplier base, and improved the sourcing of raw materials to control costs amid the rising prices of raw materials.

“In spite of strong inflationary pressures that drive up the price of raw materials, the gross margin settled at 50%, which is slightly lower than the 51% gross margin in the nine-month period last year,” the company said.

The company said its cash and cash equivalents increased to P314 million from P255 million at the beginning of the year, while its shareholder equity climbed to P442 million as of the end-September period from P409 million as of last year.

“Balai ni Fruitas is able to launch new products and expand its retail network more quickly attributed to its solid cash position. The company continues to exemplify its ability to generate cash through the effectiveness of its store operations,” the company said.

As of Nov. 7, Balai ni Fruitas has 119 stores, with four new stores launched during the start of the fourth quarter.

“With Balai ni Fruitas’ performance in the first nine months of this year, we are really happy, as it has given us not only good results but also a strong foundation for the future. As the year’s final quarter approaches, we are determined to build on our outstanding financial success and end on a positive note,” Balai ni Fruitas President and Chief Executive Officer Lester C. Yu said.

“We’ll keep growing our network and developing innovative products so that the company becomes a mainstay in our clients’ daily lives and is a part of their celebrations,” he added.

Balai na Fruitas, a wholly-owned subsidiary of listed food retailer Fruitas Holdings, Inc., has three brands: Balai Pandesal, Buko ni Fruitas, and Fruitas House of Desserts.

On Tuesday, shares of Balai ni Fruitas at the local bourse rose P0.035 or 8.43% to 45 centavos apiece. — Revin Mikhael D. Ochave 

Integrated Micro-Electronics incurs loss

LISTED Integrated Micro-Electronics, Inc. (IMI) incurred a net loss for the third quarter on the back of lower revenues and slower demand for electronics.

In a regulatory filing on Tuesday, the electronics manufacturing arm of Ayala Corp. said it logged a $1.6 million attributable net loss for the July-to-September period, a reversal of its $806,000 net income in the same period last year.

“Third quarter net loss is at $1.6 million which still includes losses from STI Enterprises Ltd. as IMI worked on closing the divestment transaction with Rcapital,” the company said.

IMI also posted a 3% drop in its third-quarter revenues to $341 million.

“The drop in demand is largely driven by a general slowdown across the electronics industry with companies tightening working capital levels amidst excess inventory in the supply chain,” IMI said.

According to IMI, its wholly owned subsidiaries ended the third quarter with a $1.9 million net income, down 50% from $3.8 million last year.

“Major contributors to this drop are a $1 million inventory provision in the third quarter and a $0.9 million increase in interest expense compared to 2022. Management teams will continue to closely monitor inventory levels to mitigate our exposure and accelerate cash conversion,” IMI said.

IMI added that its non-wholly owned subsidiaries logged a $3.5 million net loss in the third quarter.

Meanwhile, IMI said its nine-month attributable net loss widened to $85.26 million from the $4.71 million attributable net loss in the same period last year.

The company’s revenues as of September dropped 0.9% to $1.03 billion from $1.04 billion a year ago.

IMI announced in August that it had agreed to sell 80% of STI, along with the remaining 20% held by minority stockholders, to London-based private investment company Rcapital amid supply chain issues and various issues such as the pandemic.

In April 2017, IMI announced that it had acquired an 80% stake in STI as part of a move to expand into the aerospace and defense markets.

IMI President Jerome S. Tan said the financial results of STI will not be consolidated into IMI figures starting Nov. 1, and the capital dedicated to supporting STI will be redistributed to “enable growth in our profitable business segments.”

 “With the recent closing of the sale of STI to Rcapital at the end of October, our management teams will be able to refocus efforts into improving margins for the core businesses and concentrate on sharpening our customer portfolio,” Mr. Tan said.

Meanwhile, Mr. Tan said IMI’s sales pipeline activity has $247 million worth of annual revenue potential across all segments secured in the first nine months of 2023, up 50% against the same period last year of $165 million.

“New mobility project wins from the past few years have begun to contribute to the company, with the segment growing 12% compared to 2022… We are excited to bring in new projects from both existing and new customers which we believe will allow us to further increase profitability in our business,” Mr. Tan said.

“However, we remain prudent as industry-wide uncertainties continue to affect customer forecasts and high levels of inventory in the electronics market have led to increased financing expenses,” he added.

IMI, the manufacturing arm of AC Industrial Technology Holdings, Inc., is a wholly owned subsidiary of Ayala Corp. The company produces electronics for various markets such as automotive, industrial electronics, and aerospace.

On Tuesday, shares of IMI at the local bourse rose one centavo or 0.29% to P3.40 each. — Revin Mikhael D. Ochave

Indigenous cradle songs for contemporary audiences

A SCENE from Ida del Mundo’s video for the hele ‘Gonon Klukab Tumabaga.’

FILIPINO PARENTS do not usually expose their young children to Philippine songs due to a lack of modern versions on newer platforms. This is a real shame since lullabies or cradle songs, known locally as hele, can help children become familiar with the sounds of their mother tongue as early as infancy.

This is something the Cultural Center of the Philippines (CCP) seeks to change.

At the recent launch of Himig Himbing: Mga Heleng Atin at the CCP’s Tanghalang Ignacio Gimenez, audiences both young and old got a soothing glimpse of eight reimagined Filipino lullabies and their accompanying music videos.

The project was conceptualized two years ago, shifting from being a book on hele from different parts of the country to a collection of songs that can be accessed online, according to Dennis N. Marasigan, the CCP’s artistic director.

“Makabago man ang mga tunog, hindi ito nawawala sa pinanggalingan na mga hele (Though it incorporates modern sounds, these songs do not stray far from the original cradle songs),” he said at the launch on Nov. 5.

A project of the CCP Arts Education Department, Himig Himbing’s 16 chosen songs are based on research by ethnomusicologist Sol Trinidad and given new life by Krina Cayabyab’s musical arrangement.

Eight of the music videos for the songs were already released last year, while eight were premiered at the launch.

The filmmakers who created film interpretations of the second set of lullabies are all Cinemalaya alumnus: Arden Rod Condez, Zig Dulay, Christopher Gozum, Ida del Mundo, Vic Acedillo, Jr., Sheron Dayoc, Ma-an Asuncion-Dagñalan, and Jerrold Tarog.

Their respective additions to the collection are music videos of “Bata Alimahi,” a Cebuano-language Boholano lullaby; “Dandansoy,” a Hiligaynon song from Culasi, Antique; “Ligliway Ateng,” an indigenous lullaby from Pangasinan; “Gonon Klukab Tumabaga,” a B’laan lullaby first recorded in South Cotabato; “Tungas kay ta Sampaw,” a cradle song in the endangered Manobo Kinamigin language of Camiguin Island; “Uyug-uyug,” a Mansaka melody recorded in Davao del Norte; “O Matas a Banua,” a lullaby from Pampanga; and “Lubi-Lubi,” a Filipino cradle song recounting the months of the year.

CCP president Michelle Nikki Junia, who initiated the idea, said: “The project is aimed at reintroducing the indigenous lullabies to contemporary audiences and developing nurturers who are grounded in Philippine songs and heles.”

The eight videos integrated folk culture, widespread Filipino issues, and beautiful visuals to add value to the lullabies. “In a short amount of time, these filmmakers are able to make the songs memorable,” Mr. Marasigan said.

The 16 songs in Himig Himbing: Mga Heleng Atin are now available on Spotify. Their music videos can be viewed on the CCP YouTube page. — Brontë H. Lacsamana

MREIT distributable income rises 13%

THE real estate investment trust (REIT) of Tan-led Megaworld Corp. logged a 13% increase in its distributable income as of September amid higher revenues and income contribution from new office assets.

In a regulatory filing on Tuesday, MREIT, Inc. said its nine-month distributable income climbed to P2.1 billion from P1.9 billion a year ago.

“This was primarily due to the income contribution beginning this year of the four newly acquired Grade-A office towers worth P5.3 billion,” MREIT said.

In March, MREIT announced that it had secured government approval for the acquisition of four properties: Festive Walk 1B and Two Global Center in Iloilo Business Park, and One West Campus and Five West Campus in McKinley West, Taguig City to boost its asset portfolio.

MREIT’s third-quarter revenues rose 15% to P3.1 billion from P1.8 billion a year ago.

“Aside from the new assets which drove majority of the revenue growth, continued rental escalations of existing tenants also supported MREIT’s revenue growth,” the company said.

MREIT said its average occupancy rate reached 95% as of end-September, higher than the 81%-82% average occupancy rate in the Metro Manila office industry, based on figures from various property consultants.

The company added that 94% of its occupied space is from business process outsourcing and traditional office tenants that have long-term commitments to their leases and operations.

“The consistent outperformance of MREIT compared to industry benchmarks while delivering solid results underscore the quality of our assets and their prime locations. We remain committed on sustaining our earnings growth and distributions by ensuring high occupancy and implementing escalations when possible,” MREIT President and Chief Executive Officer Kevin L. Tan said.

“We are also actively seeking opportunities for growth through strategic acquisitions, so long as the valuations remain beneficial for our shareholders,” he added.

Meanwhile, MREIT said it remains committed to achieving 500,000 square meters (sq.m.) of gross leasable area (GLA) by end-2024.

MREIT and parent company Megaworld signed a memorandum of understanding (MoU) in June for the possible acquisition of seven Grade-A office assets with around 150,500 sq.m. of GLA. Once completed, MREIT’s total GLA portfolio will hit 475,500 sq.m.

The MoU included buildings situated in Megaworld townships such as McKinley Hill, McKinley West, Iloilo Business Park, and Davao Park District.

Mr. Tan said that while the MoU with Megaworld is focused on office spaces, “we are also keenly observing the impressive growth of Megaworld’s retail assets.”

“Average daily tenant sales of Megaworld’s malls have surpassed 2019 levels by a large margin, underscoring the strength of consumer spending despite macroeconomic headwinds,” he said.

Currently, MREIT’s portfolio has 18 office properties located across four Megaworld townships. These properties include 1800 Eastwood Avenue, 1880 Eastwood Avenue, and E-Commerce Plaza in Eastwood City; One World Square, Two World Square, Three World Square, 8/10 Upper McKinley, 18/20 Upper McKinley, and World Finance Plaza in McKinley Hill.

Other properties under MREIT’s portfolio are One Techno Place, Two Techno Place, Three Techno Place, One Global Center, Two Global Center, Festive Walk 1B, and Richmonde Tower in Iloilo Business Park; and One West Campus and Five West Campus in McKinley West.

Shares of MREIT at the local bourse closed unchanged at P12.20 apiece on Tuesday. — Revin Mikhael D. Ochave

Fall auctions woo rich bargain hunters with $2.5 billion in art

NEW YORK’s all-important November auction season begins this week, when hundreds of Impressionist, modern and contemporary artworks — many valued at $1 million or more — are set to hit the auction block at Christie’s, Sotheby’s, and Phillips. The three houses’ sales are expected to total roughly $1.9 billion to $2.5 billion.

The sales come on the heels of a torrent of material that hit the market in Europe and Asia earlier this fall, often to mixed responses. A grim October sales week in Hong Kong was followed by mediocre results in London. Paris presented a pleasant bright spot, but art market insiders seem to agree that the success of the New York sales season is more an open question than usual. “The market is obviously down,” says Alex Rotter, the chairman of Christie’s 20th century and 21st century art department. “Do I want to say that? No. Do I have to say it to be believable? Yes.”

DEMAND FOR SUPPLY
Because an auction house is at essence a middleman serving as a bridge between buyer and seller, in a down market the houses can be caught in a Catch-22. “Our market is always dictated by the supply,” says Jean-Paul Engelen, Americas president at Phillips. But unless heirs are selling works they’ve inherited from a relative’s estate, or someone is in financial straits, people are less likely to consign their art if they can’t be reasonably certain that it will sell.

One way around this is for an auction house to offer a guarantee that a work will sell for a minimum price, effectively purchasing it before the auction. If no one bids past that minimum when the work hits the auction block, the auction house — or a third party that has guaranteed the work — owns it; if it fetches more than the agreed-upon price, the guarantor gets a percentage of the upside. “More people are electing to take guarantees,” says Brooke Lampley, Sotheby’s global chairman and head of global fine art. She suggests that sellers think of this as an insurance policy. “They should” take a guarantee if it’s offered, she continues. “That’s my advice right now.”

Still, not every work is something an auction house or third party wants to guarantee, and not every seller wants to give away part of the potential profit. So, auction houses might cajole sellers to lower the minimum amount a work can sell for, which is known as the reserve price. “We’re really in a situation where sellers’ expectations are as great as they’ve ever been, and there’s downward pressure from buyers,” Ms. Lampley continues. “I think it’s a positive occasion to address auction strategy with consignors and encourage them to make things enticing — and try to get as many bids as possible.”

LOWER PRICES
Many sellers seem to have done this, so — for the first time in years — comparative deals can be found at the November auctions.

“You’ll see in our sale that some of the prices are already reflective of a slightly different market environment if the consignors were really listening,” Mr. Rotter says. “The ones who wanted to engage are willing to have a real discussion: Should they sell their stocks that are 30% down — or their painting that might also be 20% or 30% down — but still [for]much more than they paid for it?”

Mr. Rotter points to a Warhol from 1964, Sixteen Jackies. A similar Sixteen Jackies sold two years ago at the Macklowe sale at Sotheby’s for about $34 million. The forthcoming work at Christie’s has a low estimate of $25 million, about 25% less. (Estimates do not include auction house fees known as premiums; totals do.) A superb work by Francis Bacon, “which in my opinion is a $70-million painting in a healthy upmarket, is priced at about $50 million,” Mr. Rotter says.

Similarly at Phillips, a Hero painting by Georg Baselitz from 1966 is estimated at $6 million to $8 million, “which is a conservative estimate,” Mr. Engelen says. “The record is $9 million, which is why I’m confident that it will sell.”

MAJOR LOTS
Not everything carries a bargain-basement estimate. Sotheby’s has a particularly glittering lineup, starting with a single-owner sale on Nov. 8 featuring works owned by the late arts patron Emily Fisher Landau. Leading that sale will be a Picasso from 1932, which the auction house has priced in excess of $120 million. Sotheby’s will also sell a series of major, if slightly more esoteric pieces from the estate of the late collector Chara Schreyer, which includes a hanging work by Lee Bontecou estimated to sell from $600,000 to $800,000 and a 1984 deep basin sink by Robert Gober that carries a $2 million to $3 million estimate. There are other super-high-priced lots on offer: A self-portrait by Jean-Michel Basquiat is expected to sell for $40 million to $60 million.

Hardly slacking, Christie’s will sell art from the estate of music executive Jerry Moss (the M in A&M Records), including an exceedingly rare painting by Frida Kahlo, from 1928, estimated from $8 million to $12 million. Its 20th century evening sale is filled, in particular, with a series of world-class works including a painting from Magritte’s L’empire des lumieres series, estimated at $25 million to $35 million, and Diebenkorn’s Recollections of a Visit to Leningrad, from 1965, which carries an estimate exceeding $25 million.

Even Phillips, normally a showcase for canvases whose paint has barely dried, seems to have moved firmly into trophy territory. “This season, we’re much more blue-chip than cutting-edge,” says Ms. Engelen. The first half of the Phillips evening sale will feature major pieces consigned by the Triton Collection Foundation. Included is a double-sided painting by Léger, which carries an estimate from $15 million to $20 million, and a striking Dubuffet, from 1967, estimated from $4 million to $6 million.

This stellar lineup of lots — some in the same families for decades — has auction house leadership expressing confidence in this season’s success.

“We always say that the art market is resilient in all climates, because many of the opportunities we present are quite literally irreplaceable,” Ms. Lampley says. “That’s real, and it’s what keeps the art market healthy in more challenging economic moments.” — Bloomberg

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