Filinvest Land Inc. Hopes for a Valuation Boost Once Filinvest Reit Goes Public

Filinvest Land Inc. hopes to boost its valuation once its real estate investment trust venture, Filinvest Reit, goes public later in the year. Despite being among the biggest builders in the country, Filinvest Land only has a market value of ₱26.43 billion.

“We have always said Filinvest Land is undervalued,” said Filinvest Land Inc. CEO Josephine Gotianun-Yap. “The market sometimes does not understand or appreciate when you mix a development and investment portfolio. This will give transparency to the real value of Filinvest Land,” she explained further.

On the other hand, listing candidate Filinvest Reit is expecting to be valued at somewhere around ₱40.6 billion pesos situated at the top end of the initial public offering (IPO) range of ₱8.30 a share. This is significantly higher than its parent company even though its the sixth-largest listed property company by sales.

If 33% of Reit is sold — the minimum required by law — at the top of the price range during its IPO, it will be able to raise ₱13.6 billion for Filinvest Land according to Gotianun-Yap. The proceeds of which will be used to fund office, mall, and warehouse projects along with land purchases.

Reit was one of the least hurt among Filinvest Land’s assets, especially as its clients in the business process outsourcing (BPO) industry like Accenture and Concentrix kept offices open.

Nonetheless, the firm’s net income dipped by 41% to ₱3.73 billion in 2020. This was the lowest to have been recorded since 2012. It is expected to take at least two years before its profits return to pre-pandemic levels.

Source: The Business Times