The board of Filinvest REIT Corp. (FILRT) on Thursday approved dividends to all stockholders amounting to ₱0.071 per outstanding common share in the fourth quarter for a total of P347 million.
FILRT declared the cash dividend after recording a net income of ₱721 million in the first nine months, achieved on the back of rental and other revenues of ₱2.22 billion.
The cash dividends will be payable on Dec. 15, 2023 to stockholders on record as of Nov. 29, 2023.
This fourth quarterly cash dividend declaration for the year brings year-to-date dividends to ₱0.284 per outstanding common share which is equivalent to an annualized yield of 9.5 percent based on the previous day’s market price.
FILRT said its dividend yield is higher than the industry average.
“We are pleased to announce the fourth quarter dividends which maintain previous quarters. While we and the industry are presently facing challenges, we are steadfast in our goal to significantly increase dividends in the long term,” FILRT president and chief executive Maricel Brion-Lirio said in a statement.
FILRT has renewed 31,835 square meters equivalent to 77 percent of the expiring leases in 2023 and successfully signed new leases of 17,509 sq. m. as of the end of September 2023.
Both new leases and renewals were closed at higher rates against current transacted rates in the Alabang area, according to the Colliers 3Q 2023 market report.
The new leases have lengthened FILRT’s Weighted Average Lease Expiry (WALE) to 7.1 years as of end-September 2023 from 6.9 years as of the previous quarter.
Average occupancy for the first nine months was at 84 percent, which was better than market occupancy of 81percent as reported by Colliers in its 3Q 2023 Office market report.
FILRT is diversifying its tenant mix with traditional tenants and co-working locators with whom it has signed almost 5,200 square meters to date.
Current tenant mix is comprised of 78 percent multinational BPO companies, 11 percent traditional office and co-working, 11 percent hospitality, and the remainder taken up by retail tenants.
Six FILRT properties (Vector One, Vector Two, Plaza A, Plaza D, Filinvest Two and Filinvest Three) were recently awarded certification under EDGE (Excellence in Design for Greater Efficiency), an international green building standard created by the International Finance Corporation of the World Bank.
This gives FILRT the distinction of having the highest number of EDGE-certified office buildings among the REITs in the Philippines. Two buildings in FILRT’s portfolio are also LEED Gold-certified.
These distinctions underscore FILRT’s commitment to sustainability and the utilization of eco-efficient assets.
FILRT said it future growth will be driven by a pipeline of high-value and green-designed assets that attract tenants who share Filinvest’s sustainability goals.
Energy, water and resource efficiency, inclusive mobility, green spaces and human experience are fundamental principles that are incorporated into the master planning of the district where FILRT properties are located.