Once seen as heavily exposed to offices, it has diversified in a big way after parent Filinvest Land folded in Festival Mall – Main Mall, raising its retail footprint to 37.5 percent from zero.
That shift, according to AP Securities’ research analyst Shawn Ray Atienza, is reshaping FILRT’s growth path and reducing its reliance on a shaky office sector.
In a report dated Sept. 22, AP Securities issued a “Buy” rating with a dividend discount model-based target price of P4.12, implying an 18 percent upside from its recent close of P3.49 per share.
Thanks to recent expansion moves, the REIT is projected to grow from P1.86 billion in 2025 to P2.33 billion by 2029, translating to a 4.6 percent compound annual growth rate, according to the brokerage house.
Diversifying beyond offices
The shift from a pure office landlord to a more diversified play is central to that thesis. Festival Mall – Main Mall was recently infused into the portfolio, instantly raising the retail share to 37.5 percent from nearly zero.
“Despite the prevailing factors negatively affecting the office segment, we believe that the company can organically grow through consistent rent escalations backed by their sustainable and PEZA-accredited office buildings,” Atienza said.
The retail pivot also cushions risks tied to slowing office demand and reinforces steady dividend growth.
Upside ahead
Dividends are forecast to rise by 16 percent in full year 2026 once Festival Mall contributes a full year of revenues, then expand 2.5 percent annually thereafter.
“We are optimistic that we should start to see a gradual increase in revenues as more tenants look for office spaces with competitive rates, especially in the southern fringes where both the residential and office segments are thriving due to improving interconnectivity to the rest of NCR,” Atienza said.
He also noted that Filinvest REIT’s southern Metro Manila focus puts it in prime position to capture IT and outsourcing sector demand moving outside traditional business districts.
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—Edited by Miguel R. Camus
