GOTIANUN-LED Filinvest REIT Corp. (FILRT) recorded a 6.3% decline in net income for 2024, falling to P1.63 billion from P1.74 billion in 2023 due to lower rental revenue.
Revenue dropped by 4.9% to P2.84 billion in 2024 from P2.99 billion in 2023, FILRT said in a regulatory filing on Tuesday.
Rental revenue decreased by 5.2% to P2.19 billion, while other income fell by 3.9% to P652.25 million.
Costs and expenses also declined by 7.7% to P1.19 billion.
In a separate regulatory filing, FILRT said it secured stockholders’ approval for its planned P6.26-billion property-for-share swap, which will add Festival Mall in Alabang, Muntinlupa City, to its portfolio.
Under the deal, FILRT will issue 1.63 billion shares at P3.85 each to its parent company and sponsor, Filinvest Land, Inc. (FLI), in exchange for ownership of the 121,862-square-meter (sq.m.) main mall of Festival Mall.
The addition of Festival Mall will diversify FILRT’s portfolio into the retail mall segment, which previously comprised 17 office buildings and 2.9 hectares of land leased to the owner and operator of Crimson Resort & Spa Boracay.
Upon infusion, FILRT’s portfolio mix will consist of 67% offices, 6% hospitality, and 27% retail.
The inclusion of Festival Mall will expand FILRT’s total gross leasable area by 37% to 452,310 sq.m.
“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,” FILRT President and Chief Executive Officer Maricel Brion-Lirio said.
For 2024, FILRT signed new leases totaling almost 29,000 sq.m. and renewed over 42,000 sq.m. of expiring leases.
On Tuesday, FILRT shares remained unchanged at P3.15 apiece. — Revin Mikhael D. Ochave
