Gotianun-led property developer Filinvest Land Inc. (FLI) posted a 24-percent year-on-year expansion in first quarter net profit to P1.84 billion, driven by a double-digit growth in earnings from residential development and rental portfolio.
FLI’s gross revenues rose by 15 percent year-on-year to P7.2 billion during the first three months, the company disclosed to the Philippine Stock Exchange on Wednesday.
The company saw a 42-percent year-on-year increase in three-month rental revenues, such as from its offices and shopping malls, which reached P1.72 billion.
It also reported a 10-percent growth in real estate sales amounting to P5.11 billion for the quarter.
“We are pleased with the first quarter results as we continue to experience growth in our recurring income business. Last year, we completed the construction of six office buildings, with a gross leasable area (GLA) of 118,000 square meters which contributed to our improved financial results. We have also achieved growth in real estate revenues as we continue to focus on the affordable and middle income markets with our Futura and Aspire home brands, respectively,” FLI president and chief executive officer Josephine Gotianun-Yap said.
FLI has substantially completed another office building, Axis Two, in Northgate Cyberzone, adding 39,000 sqm of GLA to its office portfolio and bringing FLI’s total office GLA to 510,000 sqm.
The company’s office developments are mostly located in three main hubs: Northgate Cyberzone in Filinvest City, Muntinlupa; Filinvest Mimosa+ Leisure City in Clark; and Cebu City.
FLI’s other office properties in Metro Manila are found along major MRT corridors.
FLI targets to reach 1.6 million sqm of GLA in office and retail rental properties by 2023.
The company also plans to expand to logistics and industrial parks 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.
FLI recently broke ground for its 288-hectare development in New Clark City, a joint venture with the Bases Conversion and Development Authority. This year, FLI expects to start construction of phase 1 of Filinvest at New Clark City, a 64-ha innovation and logistics park which is seen to serve as the economic base of the New Clark City development. Completion of Phase 1 of Filinvest at New Clark City is targeted for the first quarter of 2020.