LISTED Filinvest REIT Corp. (FILRT) targets an expansion of the occupancy rate of its office portfolio to 95% by 2026 as the company looks to sustain growth, its president said.
“FILRT aims to reach an occupancy of 95% before 2026 driven by tenant diversification. We are now focusing our efforts on signing up more new tenants as we endeavor to further improve FILRT’s occupancy,” FILRT President and Chief Executive Officer Maricel Brion-Lirio said during a recent online briefing.
Ms. Lirio said the company’s office portfolio, consisting of 17 buildings, had an 83% occupancy rate as of the end of September, led by new leases from traditional companies and business process outsourcing (BPO) tenants.
“As of the end of September, we have a total of over 22,800 square meters (sq.m.) of new leases alone. These are a mix of new, traditional companies, BPO tenants, and expansions of existing BPO tenants,” she said.
“Over 42,400 sq.m. or 75% of expiring leases for 2024 have been renewed, year to date,” she added.
Ms. Lirio said FILRT is looking at asset infusions to diversify its portfolio and increase its current gross leasable area (GLA) spanning 330,000 sq.m.
“FILRT targets to double its current GLA of 330,000 sq.m. and diversify its assets through asset infusions from its sponsor, Filinvest Land, Inc., and parent firm Filinvest Development Corp.,” she said.
“We have a lot of properties or assets that we are looking into, including the fund manager’s assets, retail, hotels, and industrials,” she added.
Ms. Lirio also said the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) law will help FILRT’s growth since it will spur more office demand.
“This program will potentially increase the return to on-site work from the current 70% work-from-home and 30% work-in-office setup to a 50%-50% split. We are also looking forward to increased demand coming from this CREATE MORE,” she said.
Signed on Nov. 11, the CREATE MORE Act further reduces the corporate income tax to 20% from 25% for registered business enterprises (RBEs).
The law also institutionalizes flexible work arrangements for RBEs operating within economic zones and freeports without compromising their tax incentives.
On Wednesday, FILRT shares fell by 0.33% or one centavo to P3.04 apiece. — Revin Mikhael D. Ochave