Filinvest REIT Corp. (FILRT) said Thursday the average office occupancy rate across its portfolio fell to 79 percent in the first half of 2024 from 84 percent in the same period last year as companies continued to vacate office spaces amid the shift to work-from-home or hybrid set-ups.
FILRT said in a disclosure to the stock exchange that to counter this decline, it was aggressively rebuilding its portfolio occupancy by securing new leases from traditional companies and new BPO companies. These new deals will replace the BPO tenants that have downsized due to the shift to work-from-home or hybrid set-ups of its employees.
“We are pleased with the steady improvement in occupancy of FILRT. Our deliberate efforts in rebuilding the tenancy of our office buildings are starting to pay off,” said FILRT president and chief executive Maricel Brion-Lirio.
“We are looking to expand our portfolio and further diversify our tenant base as we continue to gain momentum,” she said.
FILRT earlier signed new multinational BPOs from Singapore and New Zealand. FILRT secured a total of 13,126 square meters of new leases, and another 20,742 sq. m. covered by letters of Intent in the first half.
More than 26,204 sq. m. or 46 percent of expiring leases for 2024 were renewed, with another 16,270 sq. m. or 29 percent awaiting finalization of the renewal contract.
FILRT’s first-half revenues declined by 11 percent to P1.4 billion, while net income was recorded at P601 million.
FILRT also disclosed that its board approved the dividend declaration to all stockholders amounting to P0.062 per outstanding common share.
This brings year-to-date dividends to P0.191 per outstanding common share, equivalent to an annualized yield of 8.5 percent based on the closing share price on Aug. 7, 2024.
The quarterly cash dividends will be payable on Sept. 6, 2024 to all stockholders on record as of Aug. 23, 2024.
FILRT’s portfolio includes 17 office buildings and one resort lot totaling 330,448 sq. m.
