Mall seen boosting FILRT revenues
The real estate investment trust (REIT) arm of Filinvest Land Inc. (FLI) is estimating at least 30-percent growth in three-month revenues with the infusion of 27-year-old Festival Mall Alabang into its portfolio, which is seen to benefit shareholders with higher dividends.
In a disclosure on Tuesday, Filinvest REIT Corp. said the retail mall asset could potentially boost its earnings before income tax, depreciation and amortization by “at least 30 percent per quarter.”
As a result, the Gotianun-led company’s shareholders can expect a 5.65-percent growth in dividends per share.
Filinvest REIT or FILRT is set to acquire the mall asset in a P6.26-billion property-for-share swap.
The subsidiary will issue 1.63 billion primary common shares to its REIT sponsor at P3.85 each in exchange for the asset.
The deal will increase FLI’s shareholding in Filinvest REIT to 63.27 percent from 51.06 percent.
With the completion of the transaction, Filinvest REIT will see its gross leasable area expand by 37 percent to 452,310 square meters (sq m) from 330,448 sq m.
The two companies plan to execute the deed of exchange this March. Regulatory approval is anticipated to be received by May.
Filinvest REIT intends to apply for the additional listing of shares with the Philippine Stock Exchange by the fourth quarter this year.
Festival Mall Alabang is seen as a good addition to the company’s portfolio because it has a stable occupancy rate, located in a central business district and deemed as prime-grade property.
In addition, the mall is equipped with a 2.8-megawatt solar rooftop system that supplies about 28 percent of the mall’s peak demand. The renewable energy source also cuts nearly 41,000 tons of carbon emissions.
The recent transaction comes amid FLI’s plans to launch more projects outside Metro Manila to take advantage of the demand in the provinces.
