Filinvest Land earns P1.2 billion in 9 months

MANILA, Philippines - Filinvest Land Inc. (FLI), the main property development arm of the Gotianun family, said its net profit for the nine months ending September this year improved four percent to P1.2 billion due to the continued strength of its lease operations.

Total revenues, excluding equity in net earnings, were flat at P3.6 billion. Of the total, P2.27 billion came from real estate sales while P885 million accounted for rental income.

Interest income went up 4.74 percent due to higher interests generated from short-term investments and installment contracts receivable while equity in net earnings of an associate fell 73.42 perent to P12.12 billion as a result of lower earnings by Filinvest Alabang Inc.

FLI also registered a foreign exchange gain of P5.16 million against a foreign exchange loss of P2.06 million.

Rental income generated from Festival Supermall, PBCom Tower and Northgate Cyberzone in Alabang, contributed P885.17 million or 24 percent to total revenues. The three percent year-on-year growth is attributed to higher lease rates on renewed leases and the contribution of iHub 1 and iHub 2 which came on stream during the second half of 2008.

FLI’s total office building portfolio stood at over 132,000 square meters as of September 2009, with an average take-up rate of 90 percent. Two buildings, Vector One and Vector Two, with a combined gross leasable area (GLA) of close to 36,000 square meters, are under construction and will come on stream in 2010.

Despite a weakening economy and the adverse effects of tropical storm “Ondoy,” FLI’s residential sales reservations increased eight percent to P5.28 billion. 

“The demand for FLI’s core business of residential mass housing for the socialized, affordable and middle-income markets, remains steady, accounting for about 80 percent of total sales,” FLI said.

FLI’s newest product line – medium rise buildings (MRBs), continues to sustain strong buyers’ interest. MRB projects are inner city projects with several five storey buildings clustered around the project’s central amenity area.

The company plans to add Maui Oasis in Sta. Mesa, Manila, Capri Oasis and Sorrento Oasis, both in Pasig City, to its growing portfolio of MRBs which include One Oasis Ortigas, Bali Oasis Marcos Highway, One Oasis Davao and One Oasis Cebu. 

FLI is currently offering P5 billion worth of three year and five year fixed-rate bonds, targeted for issuance on Nov. 19. The three-year bonds will yield an interest of 7.52 percent per annum while the five-year bonds will yield 8.46 percent per year.