St. Michael's Parish, a religious corporation duly organized under Philippine laws, owns a 10-hectare property in Davao City. Of the total area, 7 hectares are used for the church building, rectory, choir hall, and other parish activities exclusively serving the religious congregation. The remaining 3 hectares are leased to various commercial tenants; a restaurant, a clothing store, and a beauty salon, all at prevailing market rental rates, generating annual rental income of ₱1,800,000. The City Assessor of Davao City assessed real property tax on the entire 10-hectare property. St. Michael's Parish claims total exemption from real property tax as a religious institution. Is St. Michael's Parish entitled to a total exemption? Explain.