Filinvest REIT Corp. (FILRT) said Tuesday its shareholders approved the planned P6.26-billion property-for-share swap with parent Filinvest Land Inc. (FLI).
The deal, approved during a special stockholders meeting, involves FILRT’s issuance of 1.6 billion common shares to FLI in exchange for the Festival Mall-Main Mall in Alabang worth P6.26 billion.
Under the plan, FILRT will issue 1.626 billion shares at P3.85 apiece. The price is 30 percent higher than the stock’s average price of P2.94 over the last 30 days.
FILRT will then acquire Festival Mall-Main Mall which has a gross leasable area of 121,862 square meters located in Filinvest City, Alabang, Muntinlupa City.
The acquisition will allow FILRT to expand its portfolio of commercial properties. This will also help the company grow and provide more returns to shareholders.
Post-transaction, FILRT will increase its total portfolio by 37 percent to 452,310 sq. m., while improving occupancy from 83 percent to 88 percent.
The property-for-share swap deal is subject to the regulatory approvals.
FILRT earlier reported plans to grow its real estate portfolio. “As we move forward with our plans, we will remain steadfast in our focus on growth to deliver increasing value for our shareholders,” said Maricel Brion-Lirio, president and chief executive of FILRT.
“The company has made significant progress in recovering from the challenges of office leasing through tenant diversification. The upcoming infusion of Festival Main Mall into FILRT will further broaden our portfolio through asset type diversification,” she said.
The board of FILRT approved last week the declaration of regular cash dividends amounting to P0.062 per outstanding common share to all stockholders on record as of March 12, 2025. It is payable on March 25, 2025.
The quarter’s dividend is equivalent to a yield of 7.9 percent on an annualized basis, based on the closing share price of P3.15 on Feb. 24, 2025.