Filinvest REIT closes up 0.29% after modest stock market debut

MANILA, Philippines (Update 1, 3:06 p.m.) — Filinvest REIT Corp., the real estate investment trusts (REIT) firm of the Gotianun family, flirted with gains and losses before making a modest finish during its stock market debut Thursday.

Shares in Filinvest REIT — the third of its kind in the country which started trading on the local bourse under the stock symbol “FILRT” — opened 0.43% lower than its offer price of P7 each, before eking out gains to close up 0.29%.

It was a decent finish considering that Filinvest REIT’s predecessors — Ayala Land Inc.’s AREIT Inc. and DoubleDragon Properties Corp.’s DDMP REIT Inc. — made lackluster market debut amid a pandemic-induced volatility. On Thursday, Filinvest REIT posted an intra-day high of nearly 2%.

 “It is a vote of confidence not only in our company and this new asset class, but also in our country and in what has proven to be a most resilient industry in our economy: the BPO sector,” Josephine Gotianun-Yap, president of Filinvest Land Inc., the REIT firm’s parent company, said in a statement.

Sought for comment, Luis Limlingan of Manila-based brokerage Regina Capital said Filinvest REIT’s “relatively high dividend yield” and attractive property portfolio that enjoys tax perks from Philippine Economic Zone Authority, the country’s largest economic zone, likely drove the slight uptick of its share price.

“FILRT's projected dividend yield for 2021E would go below the benchmark 5% if it hits north of P8.80,” Limlingan said in a Viber message.

The Filinvest Land-backed REIT company raised P12.6 billion during its IPO, with the parent firm receiving all the proceeds from the maiden share sale.

Capital raised would be spent on construction of office buildings, residential mid-rise buildings and industrial warehouses, as well as raw land acquisition. Some portion will also go to capital expenditures for retail malls and the expansion of the district cooling system in Northgate Cyberzone.

Filinvest REIT boasts of a portfolio that consists of 17 Grade A office buildings totaling over 300,000 square meters of gross leasable area (GLA), with call center companies accounting for majority of its tenants. The law mandates that 90% of income from REITs’ property assets should be distributed as dividends to shareholders.

This year. Filinvest projects a P2.15 billion gross rental income.

“I wish Filinvest the best and thank its board, officers, and staff for their confidence in the strength of our economy. This REIT offering will be among the catalysts for our quick and strong economic recovery,” Finance Secretary Carlos Dominguez III said during the listing ceremony.

“With this REIT offering, I encourage Filinvest to further expand its portfolio of sustainable property developments, especially outside the Metro Manila area,” Dominguez added.

Editor's note: Added closing figures and statement from Josephine Gotianun-Yap.