PHL calls on ADB to expand loan portfolio to support economies’ recovery

May 4, 2021 | 12:31 am

Carlos-Dominguez-III-011619 — FINANCE SECRETARY CARLOS G. DOMINGUEZ III

THE PHILIPPINES asked the Asian Development Bank (ADB) to expand its loan portfolio in the next five years to give developing member countries greater access to credit as they recover from the pandemic.

“In order to be responsive to critical needs, the ADB must level up. Specifically, there is a need for the bank to seriously consider a substantial expansion in its loan portfolio in the next five-year period,” Finance Secretary Carlos G. Dominguez III said during the ADB Governors’ seminar at the bank’s 54^th annual meeting held virtually on Monday.

“This will effectively support its member countries’ recovery even if this brings forward the need for a capital increase,” Mr. Dominguez said.

ADB President Masatsugu Asakawa responded positively, saying the multilateral bank was able to increase its lending last year to a record high of $32 billion. This was 32% higher than 2019’s $24 billion.

Mr. Dominguez said the bank served as a “prime vehicle for regional cooperation,” especially last year when ADB provided the financing that the Philippine government needed to respond to the crisis promptly.

In the Philippines, the bank’s total lending reached an all-time high of $4.24 billion in 2020, with 56% or $2.39 billion of which financed the government’s pandemic response.

The ADB also set a $3.9-billion lending program for the country this year, which includes the $400-million loan for vaccine procurement.

“The effort to revive our economies will be a long one. Developing countries need access to financial resources to boost healthcare systems and build resiliency against new virus outbreaks. We also need to support the recovery of the sectors that were severely affected by the contagion,” Mr. Dominguez said.

At an earlier session on Monday, Mr. Asakawa said developing economies should gradually reduce their reliance on external financing to support their programs and instead, boost their capacity to generate more revenues through taxation.

He said a robust source of domestic resources could help governments keep their fiscal standing sustainable.

“Every developing country is under enormous pressure on budget and public debt resulting from large-scale countercyclical fiscal expenditures,” Mr. Asakawa said.

“DMCs (developing member countries) should try to rely less and less on external financing, by enhancing its domestic resources to make their financial structure viable and domestic resources, which mainly means tax revenues,” Mr. Asakawa said.

“If you look at a tax to GDP (gross domestic product) ratio in our region, it’s relatively low compared with the world average. In other words it can be interpreted that there is much room to increase our tax revenue by either restructuring our tax policy and/or by enhancing our tax administration efficiency and capability,” he added.

The ADB announced last year that it would set up a regional tax for its developing member economies to improve domestic resource mobilization and international tax cooperation. — Beatrice M. Laforga

PSE wants some REIT shares exempt from lock-up

May 4, 2021 | 12:11 am

Proposal allows sponsors to sell their holdings during IPO

By Keren Concepcion G. Valmonte

THE Philippine Stock Exchange (PSE) is proposing to exempt shares of real estate investment trusts (REIT) issued and sold to their sponsor company from the existing lockup rule.

REITs are subjected to the same guidelines under Section 2(a) of Article III of Parts D and E of the PSE’s listing and disclosure rules.

The rule states that shares bought and paid for in full at a price lower than the offer or listing price 180 days before the offering period or listing date will be subjected to a lockup period of at least 365 days from full payment.

It prevents sponsors from selling their shares via secondary offering through the initial public offering (IPO), which then does not allow a REIT to comply with the one-third minimum public ownership (MPO) requirement.

A sponsor and the REIT usually enter a tax-free deal where the sponsor acquires a controlling interest in the REIT through its issued and outstanding shares in exchange for some income-generating real estate.

On some occasions, sponsors may be issued shares 180 days before the IPO, where it can also sell its shares via a secondary offering.

The PSE is now proposing to exempt shares issued to sponsors, as long as they were not issued earlier than the 180-day period before the IPO because of regulatory requirements.

The changes will also allow sponsors to sell the exempted shares during the IPO “to the extent that will allow the REIT to achieve the [MPO] requirement.”

“REIT shares, which are covered by this exemption but are not sold during the IPO, shall lose their lockup exemption and be subject to the 365-day lockup counted from full payment,” the PSE said.

The applicant company will be required to submit all the necessary documents and comply with requirements outlined in the consolidated listing and disclosure rules of the exchange.

The lockup rules will replace the guideline on listing application documents in Section 5 of the REIT listing rules. It also outlines lockup rules for shareholders of companies planning to list REITs at the small, medium, and emerging board of the local bourse.

A copy of the proposed rules may be accessed at the PSE’s website.

Interested parties are invited to submit to the exchange their comments or queries regarding the proposal by May 10.

SMPC: return to pre-pandemic profit ‘unlikely’ in 2021

May 4, 2021 | 12:10 am

By Angelica Y. Yang, Reporter

SEMIRARA Mining and Power Corp. (SMPC) is not likely to return to its pre-pandemic profit this year, its top official said, even as the listed firm expects its coal business to fare better this year.

“Given our operational headwinds and until our country reaches herd immunity, it is unlikely that we will return to our pre-pandemic profit level this year,” said SMPC Chairman and Chief Executive Office Isidro A. Consunji said during the company’s annual stockholders meeting (ASM) held virtually on Monday.

Due to the pandemic, the firm’s businesses experienced “significant setbacks” last year, including a drop in global coal prices, China’s mandatory import quotas to boost sales for domestic producers, and a slump in electricity prices.

“Further dragging our coal and power businesses were the abnormal water seepages in Molave North Block 7 [in Antique] and multiple outages of our power plants,” Mr. Consunji said.

Although he described 2020 as a “very bad year” for the company, he expects 2021 to bring some improvements on SMPC’s bottom line as coal and electricity markets start to recover.

SMPC recorded a 66% fall in consolidated after-tax income to P3.29 billion for 2020, on the back of lower coal and power revenues. Its net income in 2019 stood at P9.68 billion.

“This year, we expect our coal business to perform better on the back of recovering consumption and prices,” SMPC President and Chief Operating Officer Maria Cristina C. Gotianun said during the annual meeting.

Water seepage at North Block 7 has been lowered to manageable levels, with yearly coal production expected to reach 13 million metric tons, she said.

Ms. Gotianun said that the company aims to manage its market exposure but contracting out the bulk of its dependable power capacity. “Our goal is to secure bilateral contracts for around 70% of our total capacity by 2022.”

However, the firm is expecting mixed results from two of its power subsidiaries Southwest Luzon Power Generation Corp. (SLPGC), and Sem-Calaca Power Corp. (SCPC) this year.

“SLPGC is set to stage a strong profit recovery because of higher plant availability and better spot market prices,” Ms. Gotianun said. “Unfortunately, SCPC is likely to deliver disappointing results because of the forced outage of its Unit 2 beginning December 3 last year,” she added.

SMPC is working on accelerating the repair of SCPC’s generator for the second unit. If repair activities are completed, the power plant unit will be up and running by the third quarter of this year, Ms. Gotianun said.

Mr. Consunji said that the company plans to take advantage of the projected upswing of the coal and power markets by “capitalizing on its COVID-19 resiliency.”

In the coming months, SMPC looks to inoculate over 5,000 employees and indirect workers in its mine site, power plant complex and head office.

“The bulk of our vaccines will go to our Semirara Island work force, as their location limits their access to timely and quality health care. We will also prioritize employees whom we consider as high risk because of their official interaction and travel outside of their work assignment,” Ms. Gotianun said.

BIG ROLE FOR OIL AND GAS
In the next decade, Ms. Gotianun said that she expects coal and oil to both play a significant role in the country’s power mix.

She said based on Department of Energy (DoE) data, the company’s Semirara business supplied around 15% of the Philippines’ total coal demand of 33 million metric tons in 2019.

While SMPC’s core competency is in coal-based power, she said that its parent DMCI Holdings, Inc. was “looking at opportunities in the renewable energy (RE) sector.”

Latest data from the DoE showed that coal-fired power plants made up 10,944 megawatts (MW) or 41.69% of the country’s installed capacity last year, while oil-based plants accounted for 4,237 MW or 16.14%. Renewables comprised 7,617 MW or 29.02%.

On Monday, SMPC shares at the local bourse improved 1.46% or 18 centavos to close at P12.48 apiece.

SM Prime income declines nearly 22% to P6.5B

May 4, 2021 | 12:09 am

SM Prime Holdings, Inc. on Monday reported a consolidated net income of P6.5 billion for the first three months of 2021, down 22% from the P8.3 billion earned in the same period last year.

Quarter on quarter, it noted an improvement of 80% compared with the P3.6-billion profit recorded in the fourth quarter of 2020, it said in a statement.

SM Prime’s first-quarter consolidated revenues went down by 19% to P20.8 billion from P25.8 billion year on year.

Its residential business led by SM Development Corp. accounted for 57% of the company’s consolidated revenues.

Revenues from the residential segment grew by five percent to P11.9 billion from the P11.4 billion seen in the January-to-March period in the previous year.

Reservation sales also improved to P32.4 billion, 31% higher than the P24.8 billion in 2020.

Nearly 70% of the reservation sales were from newly launched projects in Metro Manila, such as Gold Residences in Parañaque City, South 2 Residences in Las Piñas City, Mint Residences in Makati City, Sands Residences in Manila City, and Sail Residences in Pasay City.

SM Prime said it is eyeing to launch 15,000 to 20,000 more residential units this year.

“The group’s operating income likewise improved by 9% recording P5.1 billion in the first quarter of 2021 from P4.6 billion of the same period under review,” the company said.

Meanwhile, its mall segment accounted for 28% of consolidated revenues at P5.9 billion, declining by nearly 48% from the P11.3 billion in mall revenues seen last year.

It is, however, a 10% improvement from the P5.3 billion seen in the last three months of 2020.

“We welcomed 2021 with high hopes as most areas in the Philippines, including Metro Manila, were placed under GCQ (general community quarantine) in the first quarter of 2021,” SM Prime President Jeffrey C. Lim said, referring to the least strict lockdown level.

“Along with the sustained growth of our residential business, our mall affiliates together with many of our SME-partners were able to reopen their shops, allowing our mall business segment to perform better,” he added.

The company’s income from mall rentals in the first quarter went down by almost 45% to P5.6 billion from P10.1 billion year on year. Compared with the last quarter of 2020, mall rental income improved by 14% from P4.9 billion.

Revenues from China-based malls soared by 53% to 199-million renminbi (RMB) in the first quarter from the RMB130 million seen in the same period last year.

“The positive growth of the company’s international malls signals return to normal operations after the government-imposed lockdown last January 2020,” SM Prime said.

The company plans to launch three new malls this year, namely: SM City Daet in Camarines Norte, SM City Roxas in Capiz, and SM City Grand Central in Caloocan City. The expansion will add almost 270,000 square meters of gross floor area for retail space.

SM Prime’s other business segments in office, hotels, and convention centers accounted for seven percent or P1.6 billion of its consolidated revenues.

Shares of SM Prime at the stock exchange went down by 0.44% on Monday, closing at P34.30 from the previous trading day’s P34.45. — Keren Concepcion G. Valmonte

AboitizLand sells 50% stake in Cebu property developer

May 4, 2021 | 12:08 am

ABOITIZLAND, Inc., the property subsidiary of Aboitiz Equity Ventures, Inc. (AEV), is selling half of its ownership interest comprised of 435 million shares in Cebu Homegrown Development, Inc. for P609 million.

Shares owned by AboitizLand will be sold to Ixidor Holdings, Inc.

“The transaction is aligned with the Aboitiz group’s strategic direction for its residential real estate business of focusing on horizontal projects,” AEV disclosed to the exchange on Monday.

Cebu Homegrown Development is said to be a joint venture of AboitizLand with Visayas-Mindanao property developer Cebu Landmasters, Inc., which focuses on developing mixed-use vertical projects in Cebu.

The transaction comprises P430,000 for 43 million common shares priced at one centavo apiece, P379,965,833.04 for 387 million redeemable preferred shares without additional paid-in capital (APIC) sold at P0.98 each, and P228,604,166.96 for five million redeemable preferred shares APIC priced at P45.72 per share.

“The transaction is not material to the business, financial condition, and operations of AEV,” the listed holding firm said.

On Monday, shares of AEV at the stock exchange improved by 0.70% or P0.25 to close at P35.75 each. — Keren Concepcion G. Valmonte

Ayala Land to issue over 609-M common shares for merger with subsidiaries

May 4, 2021 | 12:07 am

AYALA Land, Inc. will issue 609,626,351 shares to the four subsidiary corporations merging with it in exchange for their net assets, one of the subsidiaries Cebu Holdings, Inc. disclosed to the exchange on Monday.

Of the total shares issued, 491,306,375 shares will be treated as treasury shares.

Cebu Holdings, along with Asian I-Office Properties, Inc., Arca South Commercial Ventures Corp., and Central Block Developers, Inc., will be absorbed by Ayala Land through the merger.

Ayala Land has a 71.13% stake in Cebu Holdings. The company will issue 0.19 common shares for each of Cebu Holdings’ issued and outstanding shares, which means Ayala Land will issue a total of 409,783,760 common shares to the firm.

Wholly owned Cebu Holdings subsidiary Asian I-Office Properties is also part of the merger and will receive 3.29 Ayala Land common shares for every share. The transaction will total 22,244,841 of Ayala Land common shares.

Another subsidiary Arca South Commercial Ventures will receive 0.0255 Ayala Land common shares for each of its stocks, which will make it own 58,917,750 common shares of its parent company.

Central Block Developers, in which Ayala Land has a 45% direct stake and a 39.12% indirect ownership through Cebu Holdings, will own 118,680,000 Ayala Land shares. The company will be issuing 24.17 shares for each Central Block Developers issued and outstanding shares.

Ayala Land will be sending each former stockholder of the absorbed companies instructions after the effective date of the merger.

Meanwhile, the cut-off date of the audited financial statements (AFS) of the subsidiaries is Dec. 21, 2020.

Assets not reflected in the AFS of the corporation as of the cut-off date and those which may be collected by the absorbed corporations after the cut-off date and until the effective date of the merger “shall be deemed included in the conveyance, assignment and transfer pursuant to [the] merger.”

As a result of the merger, Ayala Land is expected to have assets worth over P457-billion in carrying value or over P1.38 trillion in fair value, liabilities amounting to over P306.94 billion in carrying value or nearly P306.94 billion in fair value, and equity of P105.37 billion in carrying value or P1.08 trillion in fair value.

On Monday, Ayala Land shares at the stock exchange closed higher by 0.31% or P0.10 at P32.30 apiece. — Keren Concepcion G. Valmonte

Globe: More than a fourth of fiber-to-the-home lines target for 2021 completed

May 4, 2021 | 12:06 am

GLOBE Telecom, Inc. said on Monday it is on track to complete its one-million fiber-to-the-home (FTTH) lines this year, after laying 274,000 lines as of the first quarter.

“That’s more than a fourth of [our] target of one million FTTH lines for 2021,” Globe said in an e-mailed statement.

Globe has completed the expansion of at least 4,210 sites.

In the first quarter, the telco installed 318 new cell towers across the country.

“While our numbers are good for the first quarter of the year, there is still a lot more work to be done,” said Joel R. Agustin, Globe senior vice-president for program delivery, network technical group.

“We need to continue this momentum and rise above quarantine challenges to meet the growing demand of our customers,” he added.

According to the latest Speedtest Global Index by US internet testing and analysis company Ookla, fixed broadband in the Philippines continued to improve in March, with an average speed of 46.25 megabits per second (Mbps), up 20.25% from February.

Meanwhile, mobile internet had an average download speed of 25.43 Mbps, down from 26.24 Mbps in February. — Arjay L. Balinbin

Cebu Landmasters enters P3-B notes facility to partially fund capex

May 4, 2021 | 12:05 am

PROPERTY developer Cebu Landmasters, Inc. (CLI) entered a P3-billion notes facility agreement with BPI Investment Management, Inc. (BIMI) to partially fund the P12-billion capital expenditure (capex) set for the year.

“We fully intend to live up to our obligations and ensure mutual value and success for our investors,” Beauregard Grant L. Cheng, chief finance officer at CLI, said in a statement on Monday.

CLI earlier announced that it would use this year’s capex to fund the development of its new projects.

Proceeds from the notes will be used to finance the company’s portfolio expansion to create a mixed-use 300-room dormitory-hotel business in Cebu City and other projects in Visayas and Mindanao.

Some of the proceeds will be used for the construction of the company’s 100-hectare reclamation project for its Cebu-based techno business park.

The deal was arranged by BPI Capital Corp.

“CLI is grateful to BIMI and BPI Capital for their trust in our business. We look forward to a long and fruitful partnership that will bring shared value to all parties,” Mr. Cheng added.

Shares of CLI at the stock exchange went up by 1.37% to P5.90 each on Monday from P5.82. — Keren Concepcion G. Valmonte

CBD rental rates continue to slip

May 4, 2021 | 12:05 am

AyalaMall_vacancies — SHOPPING MALL vacancies surged to 6.6% as many local and foreign fashion brands pulled out. — BW FILE PHOTO

RENTAL RATES in Metro Manila’s residential, office and retail segments continued to decline in the first quarter, as landlords struggled to curb a rise in vacancies amid the prolonged pandemic, according to JLL Philippines.

In its first quarter report, JLL Philippines said some landlords have been lowering asking rents to attract tenants and minimize vacancies.

Overall vacancy in the office market reached 14.7% as Philippine offshore gaming operators fled the country and outsourcing firms downsized operations.

Rents in office buildings in key central business districts (CBD) softened by 3% year on year and 0.8% quarter on quarter to P1,120 per square meter each month.

JLL Philippines Head of Research and Consultancy Janlo de los Reyes noted the majority of landlords maintained their asking rental rates but are open during negotiations.

“In terms of discussions and negotiations, landlords are more flexible in terms of looking at payment terms, which may include stretching the amortization,” he said in a briefing on Friday, adding that rental concessions have not yet been aggressive.

“We do suspect that rentals may continue to soften down the year especially as we may expect further elevated vacancies by Q3 and Q4 given the weak leasing activity that we’re seeing in the market.”

The residential market’s vacancy rate also rose to 7.3% in the first quarter, as demand from expatriates, working professionals, and students continued to slump.

“This is mainly due to the weak leasing market both for the upscale and also the midscale segment,” Mr. De los Reyes said.

Monthly residential rents fell to 19.8% year on year and 1.2% quarter on quarter to P38,700. Average monthly rent for luxury units are at P149,700, while upscale and midscale units go for P85,100 and P32,500, respectively.

Residential units in Makati City continued to command the highest rental rates at P68,800, followed by Taguig City (P55,800) and Parañaque City (P46,700).

“We’re seeing a shift of demand coming from, let’s say the luxury segment moving down to the upscale segment as we see income pressure from some corporate individuals,” Mr. De los Reyes said.

In the retail sector, rents declined by around 16.4% year on year to P1,730 per square meter each month, which JLL said was pulled down by mall operators trying to address high vacancies. Shopping mall vacancies surged to 6.6% as many local and foreign fashion brands pulled out.

These closures exceeded the openings coming from food and beverage and general merchandise stores.

The logistics sector however continues to thrive. Occupancy remains high for logistics spaces built specifically for certain tenants and those up for lease.

“In terms of demand, we’re seeing a pickup in terms of fast-moving consumer goods as well as third party logistics,” Mr. De los Reyes said. — Jenina P. Ibañez

GMA now streaming dramas on iQiyi

May 4, 2021 | 12:05 am

IT is now possible to stream GMA dramas as the network sealed a multi-year partnership with the Singapore-based on-demand streaming services iQiyi International.

Kapuso dramas First Yaya, and upcoming shows Legal Wives, Nagbabagang Luha, and Love You Stranger will be available within 24 hours after airing on TV on the iQiyi app or iQ.com. The GMA dramas are the first Filipino content to be available on the OTT (over-the-top, a media service offered directly to viewers via the Internet) platform.

“We are honored and grateful for iQiyi’s trust in partnering with GMA Network as the Kapuso programs jumpstart the exciting line-up of Filipino content for this platform. As we continue to adapt to the shifting interests of our viewers and their viewing habits, we relentlessly produce world-class entertainment programs that can be consumed in various platforms and iQiyi International’s massive user base will likewise complement our digital efforts,” GMA Network Chairman and CEO Felipe L. Gozon said in a statement.

“There was a need for the viewers to go beyond this television viewing,” GMA Network Adviser for Content Sales, Syndication, Partnerships, and Distribution Reena Garingan said in an online press conference on April 29 via Zoom.

Ms. Garingan added that the shows are ad free when streamed online and audiences can rewatch episodes.

The romantic-comedy series First Yaya is the first Kapuso drama available on iQiyi. It follows Melody (played by Sanya Lopez) who gets to lead an extraordinary life as the nanny of the children of President Glenn Acosta (played by Gabby Concepcion) and eventually falls for him.

The upcoming shows are the cultural drama Legal Wives, starring Dennis Trillo, Alice Dixson, Andrea Torres, and Bianca Umali; the TV adaptation of the 1988 award-winning film Nagbabagang Luha, starring Glaiza de Castro and Rayver Cruz; and the romance-mystery mini-series Love You Stranger, starring real-life couple Gabbi Garcia and Khalil Ramos.

“We are excited that this year alone, 12 new titles with over 1000 catch-up episodes will be available on iQiyi…,” iQiyi Philippines Country Manager Sherwin Dela Cruz said in a statement.

Bringing GMA Network’s entertainment content to international audiences is also a possibility in the partnership.

“We’re focusing first on the Philippines because it’s the first entry point into the partnership. As we move forward, I can imagine that we are going to bring some GMA shows to our neighboring countries,” Mr. Dela Cruz said in the same press conference, citing Hong Kong and the Middle East as possible areas since the platform is also prominent there.

For P99 per month, subscribers can catch up on Kapuso shows via iQ.com or the iQiyi International app. — Michelle Anne P. Soliman

EEI incurs P2-billion net loss as pandemic disrupts business

May 4, 2021 | 12:04 am

CONSTRUCTION firm EEI Corp. incurred P2.05 billion in attributable net loss in 2020, swinging from its P1.16-billion income a year earlier, after recording lower revenues from contracts during the pandemic.

In its annual report disclosed to the local bourse on Monday, EEI also placed its after-tax losses at P2.07 billion. Revenues from contracts with customers fell by around 41% to P13.88 billion last year.

“The outbreak of COVID-19 (coronavirus disease) in 2020 disrupted the business of the Group in 2020,” the company said, adding that the disruption included the temporary stoppage of construction activities during the enhanced community quarantine.

It said it had incurred additional construction cost during the strict locdown imposed by the government.

By end-2020, EEI had a backlog of existing contracts amounting to P60.4 billion, which includes projects from the Saudi Arabia-based Al-Rushaid Construction Co. Ltd. totaling P17.38 billion. The company described the backlogs as “healthy and sustainable.”

“Despite the delays in operations caused by the COVID-19 pandemic, the backlog was preserved and will be realized as construction works resume,” the company said, adding that it remains bullish for its short- to medium-term prospects.

The firm said that it expects local operations to perform strongly this year. “EEI expects an overall strong performance in its domestic operations driven by the current buildings, infrastructure, electromechanical, and industrial projects in its pipeline as production continues to pick-up,” it said.

The company said that it stood to benefit as the government rolls out more infrastructure projects under its “Build Build Build” program. It added that it had begun to digitize its processes and increase its operational efficiencies.

EEI said it “continues to explore businesses outside of construction, and has taken steps to participate in areas such as digital logistics, which has been thriving even before the pandemic hit.”

These diversifications, according to the firm, “are expected to bring new growth potential and help future-proof the company.”

Shares of EEI in the local bourse inched down by 0.54% or four centavos to close at P7.40 apiece on Monday. — Angelica Y. Yang

Why property management processes should be automated

May 4, 2021 | 12:04 am

checking-data-laptop — PRESSFOTO/FREEPIK

By Arjay L. Balinbin, Senior Reporter

THE ongoing coronavirus pandemic necessitates the adoption of smart processes for property management companies, but changing their mindset towards innovation remains a challenge, according to cloud-based property management solutions provider Inventi.

“Real estate is a very traditional industry. Innovation comes very slow to the real estate industry, so it’s all about changing the mindset of the companies to make technological innovation and integration a part of their strategy,” Inventi Business Development Manager Francis R. Henares told BusinessWorld via Zoom on April 23.

“I would say that real estate development is one of the slower industries to embrace change, and this has a lot to do with people and manual processes. They are more comfortable trusting people to do the job as opposed to a computer or a piece of software,” he added.

Many property management companies are very traditional, since they became successful without technological integration, the Inventi official said.

Property management is mainly about maintenance and tenant management. This means making sure the building operations run smoothly, such as elevators, water pumps and fire safety systems. It also involves providing efficient services to the building’s tenants.

Many problems arise from manual processes such as requiring guests to sign in a logbook or fill out forms before being allowed entry, as well as manual reading of meters and elevator management.

“We came in initially to try to change these ways by digitizing them. But since the start of the pandemic, it’s kind of kickstarted the need to incorporate technology even more because we now have the challenges of remote working and skeletal facilities teams. Before, property management was so manual, everyone had to coordinate in person manually every single day. But what happens if you are working from home? What happens if your teams are skeletal? What happens if the property manager is also working from home?” Mr. Henares said.

Inventi started in 2017 as a building management system. It then transitioned to a multi-branch property management system until it incorporated internet of things devices into its system.

By the end of the second quarter, Inventi’s system will have been implemented in more than a hundred buildings around the Philippines.

“Slowly, by the end of the year, we hope to go into machine learning wherein the system, based on the data it receives, makes decisions without intervention,” Mr. Henares said.

“For example, when generating a report. Usually, property managers need to generate reports every day, every week, or every month, and they are in the office manually inputting data and generating their reports to give to their supervisors. What our system can do is collect the data, automate the creation of the report, and send it every day at 8 p.m. or every week on Friday at 8 p.m. to the people who need to see it,” he explained.

The same can be done with statements of account. The reading of water and electricity meters can be automated by replacing them with smart meters that can feed the consumption data into the system, which will automatically generate a report, Mr. Henares said.