In 2019, the Philippine economy grew at a slower pace compared to 2018, ending the year with 5.9% growth in GDP, the first time in eight years it went below 6%. However, Business Process Outsourcing (BPO) revenues and OFW remittances which grew 3.9%, continue to be drivers of growth while inflation stabilized at 2.5% by the end of the year. Filinvest Land, Inc. (FLI) benefitted from the solid growth of the BPO business with office revenues rising 34%.
BUILDING FOR GROWTH
At the end of 2019, the recurring income portfolio reached close to 780,000 square meters. The rental business now accounts for 48% of the company’s total net income, with revenues growing by 25%. We expect to maintain this growth trajectory as we expect a number of our office buildings will be completed this year and prospective clients have already signified their interest to lease from us.
Your Company has expanded to logistics and industrial parks by providing large spaces needed by logistics and light manufacturing companies, initially in the Filinvest Innovation Park in New Clark City. The Filinvest Innovation Park will be ready to welcome locators by the third quarter of 2020. Another new leasing product, a dormitel project, which offers office workers a temporary home close to their workplace will be completed within this year.
Your company targets to reach 2.1 million square meters GLA by 2024 for its recurring income business which includes office, retail, logistics/innovation and dormitel investment properties.
Your Company also launched Php13 billion worth of residential projects across the country catering primarily to the affordable and middle-income markets.
MAXIMIZING SHAREHOLDER VALUE
FLI ended the year with a net income attributable to equity holders of Php6.28 billion, 7% higher than in 2018. We are proud to report that our residential development as well as our rental business achieved significant growth with residential revenues reflecting an 18% growth and a 25% growth from the rental business.
In 2019, we declared cash dividends amounting to Php 0.0619 per share equivalent to 25% payout ratio and a dividend yield at the time of declaration of 4% among the highest for Philippine property companies.