FILINVEST LAND, INC. (FLI) reported a 4.6% rise in net income in the third quarter, as higher rental revenues helped offset a drop in real estate sales.
In a regulatory filing, the Gotianun-led property developer said its net income stood at P1.03 billion during the July to September period, from P992.94 million posted a year ago.
Third-quarter revenues grew by 1.5% to P4.45 billion, as real estate sales fell by an annual 13% to P2.88 billion. However, rental revenues were a bright spot, surging 43% year on year to P1.15 billion.
This pushed FLI’s nine-month profit to P3.7 billion, 7% up from a year ago’s P3.46 billion. Total revenues also rose 7% to P14.52 billion during the same period.
“The company attributes the revenue increase to a major expansion of its rental property portfolio and the continued strong demand for its retail and office spaces,” FLI said.
From January to September, real estate revenues inched up 1.3% to P10.38 billion, while rental services jumped 31% to P3.15 billion.
FLI attributed the higher rental revenues to its new office and retail buildings, such as Vector Three in Northgate Cyberzone Alabang. FLI currently has 22 office buildings with a total of 348,000 square meters of gross leasable area (GLA).
The company is set to complete and turn over three buildings within the year, namely Axis One in Northgate Cyberzone in Filinvest City, Cebu Cyberzone Tower Two in Lahug, Cebu City, and the first office building in Mimosa in Clark, Pampanga.
“As a result, total office GLA will further increase by 75,000 square meters (sq.m.) to 423,000 sq.m. by the end of 2017. This represents a total increase of 36% from end-2016 GLA,” FLI said.
FLI also expanded its retail portfolio with the opening of Main Square Community Mall in Bacoor, Cavite, and Fora Mall in Tagaytay. The two new malls added 50,000 sq.m. to bring the company’s total retail GLA to 211,000 sq.m.
“We remain very positive about the company’s prospects and continued growth as our new office buildings and retail developments are taken up by tenants. We also expect residential revenues to remain stable,” FLI President and CEO Josephine Gotianun-Yap was quoted as saying in a statement. — CRAG