In a statement issued on Monday, the listed property developer said its net income attributable to the parent increased 7% from the P5.01 billion booked for 2015, following a 7% rise in revenues to P19.50 billion from P18.30 billion.
Rental revenues mostly from office buildings accounted for 40% of Filinvest Land’s net income during the period, after growing 15% to P3.38 billion from P2.95 billion.
The company completed three office buildings in the last quarter of 2015. It also brought online Filinvest Cyberzone City 1 and 2 in Pasay City, which offers 37,000 square meters (sq.m.) more of gross leasable area, last year.
Filinvest Land now operates 21 office buildings totalling 312,000 sq.m. of gross leasable area, a 50% increase over a two-year period.
“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 Officer Lourdes Josephine Gotianun Yap said in the statement.
Filinvest Land is growing its portfolio of leasable retail spaces as well. After delivering its 28,000-sq.m. Main Square Community Mall in Cavite, the company will open its 48,000-sq.m. Fora Mall in Tagaytay next month.
The property developer intends to have one million sq.m. of leasable office and retail spaces by 2019 to balance its income mix between rental and trading.
Alongside, Filinvest Land continues to launch residential projects catering to the affordable and middle-income segments of the market. More than 70% of the company’s product offerings are house-and-lots and mid-rise buildings located nationwide.
Filinvest has earmarked P5 billion more to expand its economic housing brand Futura Homes and medium-rise building line Spatial in Mindanao over the next three years. It has developed more than 2,500 hectares of land and sold more than 160,000 housing units to date.
“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,” Ms. Gotianun Yap said.
Filinvest Land, along with parent Filinvest Development Corp., has signed a lease agreement with Clark Development Corp. to develop, manage and operate the 200-hectare Clark Mimosa estate for 50 years.
The group intends to redevelop the estate into a mixed-use, leisure-based destination within the Clark Freeport Zone in Pampanga. It will have a regional lifestyle and retail mall, a new office park, and residential options from villas to mid-rise condominiums.
Last year, Filinvest Land also signed a joint venture agreement with the Bases Conversion and Development Authority for the development of the first phase of the Clark Green City, which spans 288 hectares on the Tarlac side.
Shares in Filinvest Land closed flat at P1.70 apiece on the Philippine Stock Exchange on Monday.
by Land Asia Listings
