{"id":331064,"date":"2025-01-08T12:37:42","date_gmt":"2025-01-08T04:37:42","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=331064"},"modified":"2025-01-08T12:37:45","modified_gmt":"2025-01-08T04:37:45","slug":"stock-in-focus-filinvest-reit-corp-filrt-8-jan-2025-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-filinvest-reit-corp-filrt-8-jan-2025-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Filinvest REIT Corp. (FILRT) – 8 Jan 2025 by RCBC Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>FILRT<\/td><\/tr>
Company Name<\/strong><\/td>Filinvest REIT Corp.<\/td><\/tr>
Broker<\/strong><\/td>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>8 Jan 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 3.75<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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FILRT’s share price is up 10% year-to-date, and despite having outperformed the PSEi by 11%, it continues to offer a prospective 2025 dividend yield of 8.4%, the highest among the five REITs we cover. Retain BUY.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

Encouraging guidance<\/strong><\/p>\n\n\n\n

Filinvest REIT Corp. (FILRT) is looking to at least double its portfolio gross leasable area (GLA) by 2026 and boost the size further to 900k sqm thereafter from 330k sqm currently. The potential asset infusions will come from Sponsor Filinvest Land, Inc. (FLI) and the broader Filinvest Group, and these would involve Grade A buildings, retail assets under the Filinvest malls and Townships portfolio, and hotels under the Crimson and Quest brands. <\/p>\n\n\n\n

FILRT intends to fund the acquisitions via an optimal mix of debt and equity. Meanwhile, it also plans to improve its occupancy rate from 83% as of the end of September 2024 to 95% by 2026 and reduce the contribution of the office sector from 90% at present to 50% by 2026. With the kind of support FLI has started to show, we believe these numbers are achievable.<\/p>\n\n\n\n

Earnings recap<\/strong><\/p>\n\n\n\n

In 9-months (9M) 2024, FILRT\u2019s net income dropped by 16% year-on-year (y\/y) to Php893.7 million as revenues fell by 6.8%, steeper than the 2.9% decline in costs and expenses. The revenue decline was mainly due to the weaker occupancy, magnified by a lower rental rate.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>