The board of property developer Filinvest Land Inc. (FLI) has approved the company’s issuance of P10 billion in fixed-rate retail bonds, which it will list on the Philippine Dealing and Exchange Corp.
The said bond float is the second tranche of the company’s P30-billion shelf registration program approved by the Securities and Exchange Commission.
The second tranche consists of up to P8 billion in primary offer and P2 billion in over-subscription option, with maturities of between 4 to 6 years.
The company issued the first tranche of the shelf registered bonds worth P8.1 billion on November 18, 2020. The company mandated BDO Capital and Investment Corp., BPI Capital Corp., China Bank Capital Corp., East West Banking Corp., First Metro Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp. as its joint lead underwriters and bookrunners for the said issuance.
RCBC-Trust and Asset Management Group will serve as the trustee.
“The board of directors of the company has authorized the management of the company to evaluate all aspects relating to the proposed offering of the second tranche bonds, including the determination of the timing thereof and interest rate,” it said.
For the first half, FLI income fell 22 percent to P1.87 billion from last year’s P2.41 billion as its rental segment, including offices and shopping malls, remained weak.
Revenues fell 10 percent to P8.31 billion from last year’s P9.3 billion due to lower revenues generated from its leasing business, which was tempered by the increase in the revenues of its residential business.
Real estate sales rose by 10 percent to P5.03 billion from last year’s P4.55 billion primarily attributable to higher construction percentage of completion achieved during the second quarter.
Rental and related services, meanwhile, plunged by 27 percent to P2.86 billion from last year’s P3.91 billion due to the decline in mall and office revenues as a result of lower occupancy and rental concessions provided primarily to mall and retail tenants.
“Reduced occupancy was caused by the pre-termination of leases by POGO [Philippine offshore gaming operators] tenants. The group expects new BPO [business process outsourcing] tenants to lease out the vacated office spaces in the remainder of the year,” it said.
Capital expenditure spent for the first half of 2021 amounted to P5.78 billion, with 60 percent going to residential developments, 26 percent to office developments and the balance to retail, logistics parks and land acquisition, the company said.
Filinvest Land has a P30-billion pipeline of residential projects prepared for launching as market conditions further improve. FLI is looking to expand to new areas across the country such as Bataan, Naga, Dagupan and General Santos.
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