Filinvest Land books record profit of P5.3b
Filinvest Land Inc., the property unit of the Gotianun family, said Monday it booked a record net income of P5.35 billion in 2016.
Filinvest Land did not provide comparative figures for 2015, but previous filings with the Philippine Stock Exchange showed it registered a P5.1-billion profit in 2015.
Filinvest Land said in a disclosure to the stock exchange the record net income was achieved on the back of a 7-percent increase in revenues to P19.5 billion from P18.3 billion in 2015.
Rental revenues rose 15 percent last year to P3.38 billion, following the completion of new office buildings.
Rental income accounted for 40 percent of the property firm’s net income.
Filinvest Land completed three new buildings in the fourth quarter of 2015 and started to generate revenues in 2016.
The company also completed two new buildings last year year, including Filinvest Cyberzone Bay City 1 & 2 in the Bay area, with 37,000 square meters of gross leasable area . These buildings were fully leased out.
Filinvest Land now operates 21 office buildings with gross leasable area of 312,000 sqm, a 50-percent increase over the last two years.
The property firm recently opened a 28,000-sqm community mall in Molino, Cavite and is slated to complete another 48,000-sqm meter mall in Tagaytay in April.
Filinvest Land said it was on track to hit its 1 million sqm target for office and retail GLA by 2019, with a 50-50 income mix between rental and trading businesses.
Filinvest Land said on the residential side, it planned to invest an additional P5 billion in the next three years in Mindanao to build economic housing and affordable condominium portfolios in South Cotabato and Davao City.
“We are happy to report that our plan to triple our recurring income portfolio is beginning to bear fruit as the rental business now provides substantial revenues for the company and mitigates the risks of a cyclical residential market,” Filinvest Land president and chief executive Josephine Gotianun-Yap said.
“Our diversification strategy of having three main lines of business: residential sales, office rental and retail rental has put us in the best position to achieve synergies brought by integrated developments, as we develop townships where all three businesses can complement each other in one location. We are looking forward to FLI’s continued growth,” Gotianun-Yap said.