Total revenue for Filinvest REIT (FILRT) dropped to 800.9 Million in the first quarter of 2023 from 823.4 Million of the same period in 2022. Rental income improve by 15 Million but there was a staggering drop in tenant dues and miscellaneous income of 37.4 Million. The decrease in tenant dues was due to lower occupancy during the period as compared to the previous year.
Compounding the problem, is the increasing costs. Costs and expenses for the first quarter of 2023 increased to 408 Million from 369 Million in 2022. The higher cost was driven by utilities expenses.
Aside from increasing costs and expenses. Debt cost also increased. Interest and other financing charges increased to 92.85 Million in the first quarter of 2023 from 79.56 Million in 2022. In January, FILRT paid in full the 6 Billion bonds due. The bond had a fixed rate of 5.05% per annum. To pay the bonds FILRT secured a 3 Billion loan from BPI bearing an interest rate of 6.35% per annum and a 3 Billion loan from Citibank with an interest rate of 6.25% per annum. The increase in borrowing costs is more than a full percentage point. That is significant.
The lower revenue and the rising costs, shows up in the cash flows. In the first quarter of 2023. net cash provided by operating activities was less than half as compared to the same period last year. Cash flows from operating activities was at 334 Million as compared to last year’s 703 Million.
No wonder FILRT is trading near its 52-week low. Until the announced new wins of FILRT shows up in its financials, FILRT could still be a trapped. FILRT could still go down from here.
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