Filinvest REIT to expand properties

Filinvest REIT Corp. (FILRT), the real estate investment trust of the Filinvest Group, plans to double its 330,000-square-meter leasing portfolio over the next three years.

FILRT President Maricel Brion-Lirio said in a forum that the company also aimed to increase its office occupancy rate to 95% by 2026 from the current 83%, as part of its goal to diversify its client base.

She said doubling the company’s gross leasable area (GLA) and raising its occupancy rate are key elements of the group’s medium- to long-term strategy to strengthen operations.

“We are aiming to double the current GLA of 330,000 square meters by acquiring dividend-accretive assets in the next three years, subject to current market conditions,” Brion-Lirio said.

She said about 700,000 square meters of potential assets from the Filinvest Group could be infused into FILRT. These assets are primarily Grade A office buildings, retail spaces, and hotels.

Brion-Lirio said the group is also open to acquiring commercial assets from parties outside the Filinvest Group, provided these assets meet the company’s assessment and investment criteria.

She said to increase the occupancy rate, FILRT is expanding its tenant base, which is dominated by business process outsourcing (BPO) companies.

“We have repositioned and expanded our leasing organization to enable a shift in tenant mix, and we have repurposed and redesigned spaces to accommodate different types of clients,” she said.

Brion-Lirio said the company is signing new traditional tenants to replace the BPO tenants that downsized their operations due to the work-from-home setup.

FILRT signed 22,813 square meters of new leases in the first nine months of 2024, a 13.3% increase from the 20,139 square meters it signed in 2023. It also signed 42,474 square meters of new leases to replace 56,985 square meters of expiring leases in 2024.

FILRT also aims to achieve green certification for its properties and provide 100% renewable electricity for its tenants.