Filinvest Land Inc. sees the dividend yield of its real estate investment trust (REIT) issuance to hover around 5 percent, similar to dividend yields of peers in the market.
The company’s REIT vehicle Filinvest REIT Corp. is in the middle of a P14.92- billion REIT sale, with the company looking to issue to the public 1.79 billion secondary shares of Filinvest REIT at an offer price of up to P8.30 per share, divided into an initial 1.63 billion shares, covering the firm share, and another 163.42 million shares covering the greenshoe option. The share sale will be handled by BPI Capital Corp., and UBS as joint global coordinator and bookrunner.
Josephine Gotianun-Yap, Filinvest Land president, at the Economic Journalists Association of the Philippines’ (EJAP) forum Tuesday said “the dividend will be “definitely a competitive dividend rate similar to the other REIT that are around the mid-5 percent area.”
“We’re looking (at declaring) a dividend of 100 percent of the REIT NOI (net operating income),” she added.
Yap said the assets that are infused into the group’s REIT entity are leased for 75 years and are Grade A commercial property that are attract “very prime commercial clients” like multinational business process outsourcing.
“In addition to the initial portfolio, we have another 350,000 (square meters) of office portfolio that will be infused when it has attained the investment criteria of the REIT (reinvestment) guidelines. In addition to that we have many, many other assets of retail that are still under construction as well, as well as industrial warehousing that we’re working on, given the depth and the extent landbank that we have,” she said.
“Aside from the office portfolio which is the main focus, we’re also looking at opportunistic assets such as retail and retail and hospitality,” she added.
