Mandaluyong—(PHStocks)—Filinvest Land Inc. (PSE: FLI), one of the country’s largest residential developers and BPO office providers, recorded an 11% rise in consolidated net income of PhP5.1 billion for the full year 2015 from PhP4.61 billion in 2014.
Consolidated revenues rose 7% to PhP18.3 billion from PhP17.06 billion in 2014. The company attributes this increase to the continued strong demand for its BPO office space as well as the growth in revenues recognized from its residential sales business. The company’s profit increase was also driven by its ability to manage costs. Costs of real estate sales and rental services increased by a mere 5%. General, administrative, selling and marketing expenses meanwhile declined by 5%.
Revenues from rental assets increased to PhP2.95 billion, a 12% increase from the PhP2.63 billion generated in 2014, as the firm booked increased revenues from its office buildings. This is in line with FLI’s target to triple its recurring income portfolio from its 2014 levels to 1 million square meters of leasable space by 2019. FLI operates 14 buildings in Northgate Cyberzone and one building on EDSA in Mandaluyong, all of which are fully occupied. As of the first quarter of 2016, three new buildings totaling 68,000 square meters of gross leasable area (GLA) in Northgate Cyberzone, Alabang and Cyberzone Cebu were in the process of being turned over to locators. The new additions increased FLI’s office rental portfolio by 33 % to 275,000 square meters at the end of 2015.
FLI is also growing its retail rental space portfolio. At present, Festival Mall in Alabang is the biggest mall in the south of Metro Manila with over 135,000 square meters of retail space. Festival Mall is being expanded to add over 45,000 square meters. Aside from the Festival Mall expansion, retail developments are underway all over the country. Among the on-going retail developments are: the “Fora Mall” which will have 32,000 square meters of mall space in “Fora” adjacent to “Fora Residences” located strategically at the Tagaytay rotunda; “Center Square Community Mall” in Molino, Cavite which is part of our Princeton residential development and will add 20,000 square meters in new retail space; and the 36,000 square meter “Il Corso Mall”, the seaside lifestyle mall located in City di Mare, a township development at the South Road Properties in Cebu City. By the end of 2016, FLI’s retail portfolio is expected to double, reaching more than 275,000 square meters.
To ensure growth in the residential sales business, FLI will continue to launch projects that address the needs of its core markets which are the first time home buyers and ultimate end-users. Over the years, FLI has developed more than 2,400 hectares of land and sold more than 150,000 housing units nationwide. In 2015, FLI launched projects worth PhP12.5 Billion equivalent to approximately 6,000 units. Among these projects are: “Marina Spatial-Dumaguete” which will have mid-rise residential buildings ; “Futura Homes Mactan,” a 4.3-hectare affordable housing development located in Suba-basbas, Lapu-lapu City in Cebu; and “Studio 7,” a mixed-used development located on EDSA near the GMA-Kamuning MRT station in Quezon City. “Studio 7” will have a residential tower with studio and one bedroom units, an office tower, and will be complemented by retail establishments. Aside from these, FLI has also launched “Fora Residences”, a 330-unit condominium which will be part of “Fora”, the mixed-used development situated at the main rotunda of Tagaytay.
“We are confident that we will be able to sustain FLI’s growth momentum in 2016 as we launch new residential projects and complete our planned office and retail buildings. We are on-track with our plans to triple the GLA of our rental assets by the end of 2019,” FLI CEO and President Josephine Gotianun Yap said.