Filinvest net income up 14% to P4B in 2013

MANILA, Philippines - The Gotianun family’s property arm Filinvest Inc. (FLI) has breached the P4-billion income mark last year on the strength of the residential, office and commercial businesses.

In a regulatory filing, FLI said its profits rose 14 percent to P4 billion last year from P3.5 billion in 2012.

“The net income increased as a result of a 16-percent growth in total revenues from its residential, office and commercial business units to P13.6 billion in 2013 from P11.7 billion in 2012,” the company said.

Specifically, real estate sales picked up 19 percent to P10.5 billion from P8.8 billion while rental income gained eight percent to P2.03 billion from P1.9 billion.

“The hike in real estate sales was driven by the sustained sales take-up generated during the year, as well as the completion of more mid-rise buildings (MRBs) and house-and-lot projects,” FLI said.

FLI launched 17 projects in 2013, comprising of six new MRB projects and 11 new phases in existing horizontal projects.

New MRBs and high-rise building that contributed significantly to sales include San Remo Oasis, The Levels and Studio Zen.

Rental revenues rose on higher rental income and sustained high occupancy in existing mall and offices spaces, as well as from new spaces in Edsa Transcom Building and Northgate Cyberzone in Filinvest City, the property firm said.

Equity in net earnings from FLI’s 20-percent owned affiliate Filinvest Alabang. Inc. (FAI) was flat at P187 million. FAI is the developer of the 244-hectare Filinvest City in Alabang, Muntinlupa.

FAI sold lots with a total area of 1.7 hectares to various buyers last year. Lot prices in Filinvest City hit a high of P186,000 per square meter (sqm.), up from P115,000 per sqm. in 2012.

“Improved performance of the company in the future will be driven by the growth strategies that we have initiated recently and are now starting to pay off,” said FLI president and CEO Josephine Gotianun-Yap.

“In tandem with the growth in FLI’s residential development business, we are now aggressively building up our recurring business with a much wider geographic coverage,” she added.

For instance, FLI expects the leasing assets’ leasable area to grow more than 2.5 times over the next five years from 2013 levels.

FLI earlier acquired properties that are strategically located throughout Metro Manila, along or close to transportation lines and hubs.

“We are also adding commercial and retail spaces in strategic locations in Cebu and other selected areas,” Yap said, adding that half of the company’s capital spending program will go to investments in recurring income portfolio.