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Friday, November 17, 2023

Vernian Capital on X: Bought FILRT as a Play on the BPO Sector with an Indicative Yield of 10%

Historical Chart, Weekly

Investment Rationale:

1. Assets comprising of 17 fully operational, Grade-A PEZA accredited Office Buildings in Alabang 

and 1 prime beach lot property in Boracay leased to Crimson hotels

2. Attractive dividend yield of 10% at current levels

3. "peak rates" outlook in 2023, policy rates projected to fall in 2024 onwards, making $FILRT yield more attractive

4. Strong BPO sector outlook projected to grow more than 10% per year in the next 5 years

5. Vacancy rate of ~20% is putting pressure on rental income but can be viewed as upside potential should office leasing picks up

6. Given point number 4, we think point 5 should be mitigated with almost 80% of tenants being largely multinational BPO companies

Entry Details:

Average Entry Price (AEP) @ 2.82

Indicative Dividend Yield at AEP: 10.07%

Ex-Date: 11.28.23 with 0.071 Dividend Per Share

Traded Under (1) Income


Source: Vernian Capital on X

Philippine IT-BPM services industry revenue (2016-2028E)

For real time updates, follow @verniancapital on Twitter/X

This is not an investment advice and The Filipino Investor shall not be responsible or liable for any trading or investment decisions made based on this information.
The Filipino Investor hereby expressly disclaims any responsibility for any error or inaccuracy in the information.

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