MANILA, Philippines - Filinvest Land Inc. (FLI), the Gotianun family’s property arm, booked a double-digit earnings growth in the first half, sustaining the growth trajectory it posted early this year.
In a statement, FLI said its consolidated net income rose 15 percent to P2 billion in the first half from P1.74 billion a year ago while core revenues picked up 26 percent to P7.18 billion.
“The company attributes the strong results to the solid performance of its core businesses,” FLI said.
In the six-month period, real estate revenues surged 30 percent to P6.13 billion from P4.7 billion a year ago “driven by robust sales across the board in its horizontal housing projects as well as in its medium-rise building projects that carry the Oasis brand and high-rise building projects such as Studio Zen,” FLI said.
Revenues from rental assets rose seven percent to P1.05 billion from P990 million as the company recognized additional revenues from its new office buildings in Filinvest City in Alabang.
Other sources of rental revenues came from Filinvest Technology Park in Calamba, Laguna and commercial lots in Tagaytay, FLI said.
“We have earmarked almost half of our 2014 capital expenditures for investments that will increase both office and commercial gross leasing area,” said FLI president and CEO Josephine Gotianun-Yap.
Given the continuing strength of the property sector, FLI is set to introduce this year 22 residential projects worth P17.5 billion, significantly higher than last year’s 17 projects valued at P7.5 billion.
Among the projects launched in the first half is 100 West, a mixed-use development composed of a high-rise tower with residential, retail and office components in Makati.
100 West is the first of the several mixed-use development projects that FLI plans to launch. Strategically located near transportation hubs and along major thoroughfares, these will have spaces designated for residential areas, offices, retail shops and possibly hotels, Gotianun-Yap said.
“We expect sustained growth for the company, not only as we continue to launch new residential projects nationwide but also as we keep up with our ongoing expansion plans for additional office as well as retail spaces in selected areas all over the country,” Gotianun-Yap said.
The property firm allotted P20 billion for its capital expenditures this year, same level compared with 2013. Of these, P10 billion is set aside for projects that will boost the company’s recurring income portfolio, P2 billion for land acquisitions and the remaining for the completion of ongoing projects.
FLI is one of the leading real estate firms in the Philippines and is into mall operations, subdivision and condominium development.