The real estate investment trust arm of Filinvest Land Inc. said the asset injection will result in a jump in earnings before interest, taxes, depreciation and amortization, or Ebitda, by “at least 30 percent per quarter” from its latest financial results in the third quarter last year.
“This, in turn, translates to higher dividends per share (DPS) for FILRT shareholders with DPS growth of 5.65 percent,” it said in a stock exchange filing on Thursday.
Filinvest REIT will purchase the mall by issuing 1.63 billion shares to Filinvest Land at P3.85 per share.
The deed of exchange is expected to be completed on March 2025, the filing showed.
Mall significantly changes asset mix
With the infusion of the Festival Mall-main mall, its income portfolio will consist of offices (67 percent), retail (27 percent) and hospitality (6 percent).
Offices previously accounted for 91 percent of its gross leasable area.
Moreover, the mall will increase its gross leasable area by 37 percent to 452,210 square meters.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.