Gotianun-led Filinvest Land Inc. said its profits rose 7 percent last year to P6.28 billion, from the previous year’s P5.89 billion, on brisk residential sales and higher rental income from its newly completed office buildings.
Gross revenues rose 16 percent to P25.67 billion, driven by a 25-percent increase in rental revenues to P7.01 billion, and the 18-percent rise in residential revenues to P17.01 billion, it said.
“We are satisfied with our 2019 performance as both our residential sales and recurring income businesses reflected growth,” said FLI President and CEO Josephine Gotianun-Yap.
She said the company has allocated capital expenditures (capex) of about P16 billion this year, of just half of the P32 billion capex budget last year.
FLI also revised its project line-up and moved some of its launches originally scheduled for the second half of 2020 to next year, she said.
“We will, however, go ahead with residential projects in new geographies within the country. We have also allocated a significant amount of this year’s resources for the completion of additional office buildings, the innovation park, as well as the development of our townships,” said Yap.
“All of these signify our confidence that our company and the country will be able to hurdle the challenges ahead of us,” she added.
Last year, FLI’s residential revenue rose due to high sales take-up levels in 2018 as well as the completion of mid-rise and high rise residential buildings in 2019.
This was brought about by strong demand for FLI’s range of residential product offerings under the affordable housing brand to mid-rise buildings Futura to a selection of themed horizontal, mid-rise and accessible high-rise communities.
The company said rental revenue growth came from the completion of two new office buildings that brought FLI’s total to 30 office buildings equivalent to 524,00 square meters of gross leasable area (GLA).
FLI’s target is to reach 2.1 million square meters GLA by 2024 for its recurring income business which include its office, retail, logistics/innovation and dormitel investment properties.
The office buildings are concentrated in its three major Philippine Economic Zone Authority hubs in Filinvest City, Alabang and Mimosa Plus in Clark Special Economic Zone and Cebu.
“The office segment is expected to continue to grow in the medium term driven by demand from traditional offices, BPOs, co-working spaces, and emerging technology and e-commerce companies,” it said.
FLI has also ventured into the logistics space through the launch of the Filinvest Innovation Park at New Clark City in mid-2019. The company is seeing a demand for big land parcels and ready built factories to address the needs of the growing logistics and e-commerce industry.
By the second half of 2020, the park can start receiving locators who may wish to immediately start their building and warehouse construction. Meanwhile, planning and development of phase 2 is programmed to commence by the fourth quarter of 2020.