FILINVEST REIT CORP. (FILRT) has executed a deed of exchange with its parent company and sponsor, Filinvest Land, Inc. (FLI), for the transfer of ownership of Festival Mall in Alabang, Muntinlupa City.

The two companies executed the memorandum of agreement and the deed of exchange on March 5 as part of a P6.26-billion property-for-share swap transaction, FILRT said in a regulatory filing on Thursday.

Under the transaction, FILRT will issue 1.63 billion shares at P3.85 each to FLI in exchange for the ownership of the 121,862-square-meter (sq.m.) main mall of Festival Mall.

The addition of Festival Mall will increase FILRT’s total gross leasable area by 37% to 452,310 sq.m.

The deal expands FILRT’s portfolio into the retail mall segment. Previously, its portfolio consisted of 17 office buildings and 2.9 hectares of land leased to the owner and operator of Crimson Resort & Spa Boracay.

Following the addition of Festival Mall, FILRT’s portfolio mix will comprise 67% offices, 6% hospitality, and 27% retail.

FILRT signed new leases totaling nearly 29,000 sq.m. and renewed more than 42,000 sq.m. of expiring leases last year.

The company posted a 6.3% decline in net income for 2024 to P1.63 billion, as revenue fell by 4.9% to P2.84 billion.

Rental revenue dropped by 5.2% to P2.19 billion, while other income declined by 3.9% to P652.25 million.

On Thursday, FILRT shares rose by 0.96% or three centavos to P3.17 apiece. — Revin Mikhael D. Ochave