MANILA, Philippines — Real estate investment trust (REIT) companies Filinvest REIT Corp. (FILRT) and DoubleDragon’s DDMP REIT Inc. reported strong earnings growth in the first half and second quarter, respectively.
In a disclosure to the stock exchange, FILRT said its net income recorded an eight percent year-on-year jump to P1.05 billion in the first half on the back of revenues which reached P1.96 billion.
The company said the increase in its net income was further supported by lower provisioning for taxes mainly caused by the derecognition of projects transferred to parent company, Filinvest Land Inc.
“We are pleased with the results of our first-half performance considering the general economic climate. The BPO sector, which accounted for 90 percent of our tenants at the end of June 2021, remains to be resilient,” FILRT chairperson Josephine Gotianun-Yap said.
“We are also happy to note that we are on track to meeting our target distributable income, the basis of forthcoming quarterly dividend distributions, that we promised our potential shareholders during the initial public offering of FILRT,” she said.
FILRT, which made its successful debut on the Philippine Stock Exchange last Thursday, ended the first half with an occupancy rate of 89 percent.
Its portfolio consists of 17 Grade A office buildings totaling over 300,000 square meters of gross leasable area.
Meanwhile, DDMP REIT, in a separate stock exchange filing, reported a net income of P1.84 billion in the second quarter, up 359 percent from P399.65 million in the first quarter.
The company said its rental and common usage service area income rose by 7.7 percent to P547.70 million in the second quarter compared to the previous quarter.
“We are pleased to conduct the third consecutive cash dividend declared to the shareholders of DDMP REIT since it listed last March 24, 2021, this time covering the profits that DDMP REIT generated during the second quarter of 2021,” DDMP REIT chairman Edgar “Injap” Sia said.
“DDMP REIT has already started to avail of the benefits of the tax incentives provided by the REIT Law of the Philippines, which led to a 37.95 percent increase in dividends paid quarter-on-quarter. As we originally anticipated, these tax incentives has created a significant positive impact on the amount of cash dividends available for declaration to the shareholders of DDMP REIT,” he said.