Filinvest Land profits up 22% to P2.44B

MANILA, Philippines - The uptick in real estate sales benefited the Gotianun family’s property arm Filinvest Land Inc. (FLI) as it recorded a substantial improvement in its net income.

FLI’s earnings in January to September increased 22 percent to P2.438 billion compared with P2 billion a year ago.

“Growth in real estate sales and rental income primarily drove the rise in total revenues to P8.47 billion, a 26-percent increase versus the same period last year,” FLI said in a disclosure.

Real estate sales jumped 30 percent to P6.974 billion while rental revenues hit P1.49 billion, up eight percent from last year.

“Major contributors to the good sales performance during the period included the launching of new mid-rise buildings (MRBs) and house-and-lot projects in diverse new locations, intensive marketing activities and attractive pricing,” FLI said.

Some new MRBs and high-rise developments that increased FLI’s sales include San Remo Oasis, The Levels and Studio Zen.

For its part, rental revenues grew because of rental income at Grand Cenia and higher occupancy in both mall and offices spaces in EDSA Transcom Building, Vector Two and Plaza B, and three ready-built factories in Filinvest Technology Park in Calamba, Laguna; commercial spaces in Brentville, Mamplasan, Laguna; and commercial lots in Tagaytay, FLI said.

Equity in net earnings from FLI’s 20-percent owned affiliate Filinvest Alabang. Inc. (FAI) hit P86 million in the nine-month period. FAI is the developer of the 244-hectare Filinvest City in Alabang, Muntinlupa.

Early this month, FLI raised P7 billion from the issuance of unsecured fixed rate peso bonds.

In the next 15 months, the Gotianun-led property firm committed to spend P27.29 billion to maintain rapid and sustainable growth through the development of high-rise and medium-rise buildings in Tagaytay, Iloilo and Cagayan de Oro, Quezon City and San Juan City.

So far, the property developer has more than 100 projects in 39 cities across the country. It also has a landbank of 2,251 hectares as of end-2012.