Filinvest REIT banks on tourism sector 

Filinvest REIT Corp. (FILRT), a real estate investment trust (REIT) backed by Filinvest Land, Inc., is riding on the Philippines’ strong tourism sector as it aims to diversify its properties from office buildings to hospitality and leisure spaces after it acquired a property in Boracay, according to a report by Philippine News Agency.

In its virtual annual stockholders’ meeting on Wednesday, FILRT president and chief executive officer Maricel Brion-Lirio said its Boracay property has been contributing to the company’s revenue base since January 2023.

In December 2022, the company acquired a 29,086-square-meter land in a prime location in Boracay from FILRT’s ultimate parent company Filinvest Development Corp.

“The asset infusion is a step towards a more diversified portfolio for FILRT as it broadened the income profile mix beyond office leasing and into the growing Philippine hospitality and leisure segment,” Brion-Lirio said.

She explained that FILRT is earning from its Boracay property by leasing the land to Crimson Resort & Spa Boracay at Station Zero, Boracay’s more exclusive section with its private beachfront.

“The deal structure allows FILRT to participate in the upside in line with the expected rapid growth of Philippine tourism,” she added.

Brion-Lirio said the company is also diversifying its tenant mix by adding government agencies, wellness centers, schools or training centers, and co-working space operators amid work-from-home arrangements.

“Tenant mix at the end of 2023 is comprised of 78 percent multinational BPO companies, 11 percent traditional office and co-working, 11 percent hospitality, and the small remainder taken up by retail tenants. FILRT remains free of POGO exposure,” Brion-Lirio said.

Currently, FILRT’s portfolio consists of 17 Grade A offices with more than 300,000 sqm gross leasable area. These are located in Metro Manila, particularly in Alabang, Muntinlupa; and Cebu.

FILRT’s office has an occupancy rate of 83 percent, which is above the average office occupancy rate of 81 percent based on Colliers’ Fourth Quarter 2023 office market report.

The company’s net income last year stood at PHP1.74 billion.


Real estate is no longer just Location, Location, Location. 
Now, it’s about Location, Information…and Timing! 

- Alejandro Manalac, Executive Publisher

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