FLI profit up 15%

MANILA, Philippines - Filinvest Land Inc. (FLI), the Gotianun family’s property arm, posted significant earnings growth in the first quarter as sales of its residential projects picked up amid the property boom.

FLI’s first quarter net income rose 15 percent to P1.08 billion from P950 million a year ago, driven by solid sales figures from its real estate business and growing income from its business process outsourcing (BPO) office properties.

“The strong results can be attributed to the 20-percent revenue growth rising to P3.85 billion in the first quarter from P3.2 billion in the first quarter of 2013,” FLI said.

Real estate revenues picked up 25 percent to P3.05 billion from P2.44 billion, driven by strong growth in sales of horizontal developments in the middle-income and affordable segments. FLI also recorded revenues from the Cebu-based San Remo Oasis and Amalfi Oasis projects.

FLI said revenues from rental properties rose nine percent to P540 million from P490 million as it recognized additional income from its new buildings Filinvest One and Plaza E in the Northgate Cyberzone in Alabang, Muntinlupa.

The projects beefed up FLI’s gross leasing area to 210,000 square meters as of end-March, up 17 percent from a year ago.

FLI president and CEO Josephine Gotianun-Yap said half of the company’s P20-billion capital expenditures for 2014 will be allocated to investments in the recurring income business.

 â€œIn addition, we look forward to coming out with mixed use developments, strategically located near transportation hubs that will maximize the use of our urban properties,” she said.

 â€œWith a healthy showing in the first quarter, we are optimistic about FLI’s results for the rest of 2014,” Gotianun-Yap said.