Filinvest REIT Corp., the real estate investment trust company led by the Gotianun family, plans to conduct a P14.9-billion initial public offering in July.
Filinvest REIT filed an application with the Securities and Exchange Commission to sell up to 1.6 billion common shares, with an over-allotment option for another 163.418 million shares at an offer price of P8.30 apiece.
The offer shares represent 36.74 percent of the company’s total issued outstanding capital stock.
Its property portfolio consists of 17 fully operational office buildings, including 16 towers with one retail component in Northgate Cyberzone, Alabang and an office tower with a retail component in Cebu City. These properties have a combined gross leasable area of 229,158 square meters and total value of P36.9 billion.
It said that over the last three years, the properties benefited from high occupancy levels. As of December 2020, the properties had overall office and retail space occupancy level of 91.1 percent.
Filinvest REIT expects net income to increase to P1.036 billion in 2021 and to P1.87 billion in 2022.
It also expects a dividend yield of 5.3 percent in 2020 and 5.6 percent in 2022.
The company did not assume acquisitions of new properties for its 2021 and 2022 projections.
Filinvest REIT, formerly called Cyberzone Properties Inc., plans to hold the offering on July 8 to July 12 and the listing on July 23, 2021
It hired BPI Capital Corp and UBS AG as joint global coordinators and book runners for the offering.
Filinvest REIT is the third REIT company to file for an IPO since the government sweetened the rules on REIT offering.
The first two REIT IPOs were conducted by Ayala Land Inc.-led AREIT and DDMP REIT of DoubleDragon Properties Corp.
REIT refers to a corporation that primarily invests in income-generating real estate such as office spaces, shopping malls, service apartments, hotels, hospitals and warehouses.
REITs enable investors to participate in lucrative property portfolio investments that provide a steady stream of dividends and investment returns and prospects for capital appreciation.
As an asset class, REITs are required to declare dividends of at least 90 percent of distributable income to shareholders.
The PSE earlier said it was expecting three companies to conduct REIT offering this year.