Filinvest Land earnings rise 16% to P3.2 B in H1

MANILA, Philippines — Gotianun-led Filinvest Land Inc.(FLI) reported a 16 percent hike in its net income in the first half of the year to P3.21 billion, from P2.78 billion a year earlier, driven by higher real estate and rental revenues.

In a disclosure to the Philippine Stock Exchange, FLI said gross revenues jumped 19 percent to P12.62 billion from P10.6 billion in the same period last year.

The company attributed the revenue growth to the increase in rental and real estate revenues, which rose 30 percent and 25 percent, respectively.

Rental revenues jumped to P3.38 billion from P2.60 billion a year ago due to the completion of new office buildings.

At present, FLI operates 29 office buildings totaling 510,000 square meters of gross leasable area (GLA).

The company said it targets to operate one million sqm of office space by 2023 with office buildings located mainly in Metro Manila, Clark Special Economic Zone, including New Clark City and Cebu.

Meanwhile, real estate sales reached P8.43 billion, an increase from P6.75 billion in the same period last year.

“Residential revenue growth is attributable to the high sales take-up levels in the past quarters as well as the completion of high-rise and mid-rise residential buildings,” FLI said.

The company said it continues to launch projects that address the needs of the affordable and middle-income markets, which remain underserved.

In addition, FLI plans to launch P22 billion worth of residential projects in Metro Manila, Cavite, Rizal, Laguna, Batangas, Bulacan, Pampanga, Dagupan, Bacolod, Iloilo, Davao, Zamboanga, Cagayan de Oro and other key locations for the remainder of the year.

“We are very pleased with the first half results as we experienced significant growth in both the residential trading business as well as the recurring income business,” FLI president and CEO Josephine Gotianun-Yap said.

“We are very optimistic of further growth for the company,” she added.

FLI said it is currently is expanding its logistics and industrial park projects as part of its recurring income portfolio to address the growing needs of logistics, light manufacturing, technology and e-commerce companies looking to support inventory management.

It added that completion of Phase 1 of New Clark City’s Industrial Park, a 64-hectare innovation and logistics park which is envisaged to serve as the economic base of the development, is targeted for the first quarter of 2020.

The company said it will also introduce new leasing products such as dormitels to address the growing demand for workforce residences near the workplace.

FLI is the property development arm of Filinvest Development Corp. It owns 20 percent of Filinvest Alabang, developer of Filinvest City, while parent FDC owns 80 percent.