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Wednesday, April 9, 2014

Filinvest Land earnings climb by double-digits on residential sales

MANILA – Filinvest Land Inc (FLI) saw earnings rise in the double-digits last year on the strength of its residential business, as the Gotianun-led property developer aims to boost its recurring income portfolio in the next five years.

In a statement, FLI said its net income reached P4 billion in 2013, an improvement of 14 percent from the P3.5 billion recorded in the prior year.

The higher profit was supported by a 16 percent growth in the company's residential, office and commercial business units to P13.6 billion last year from P11.7 billion in 2012.

Real estate sales climbed 19 percent to P10.5 billion from P8.8 billion in 2012 on sustained sales take up as well as the completion of more mid-rise buildings (MRB) and house and lot projects.

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

Rental income inched up eight percent to P2.03 billion from P1.9 billion in 2012 on the back of sustained high occupancy in existing mall and offices spaces as well as new leasing space.

Equity in earnings of 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.

Lot prices at Filinvest City hit a high of P186,000 per square meter, significantly above the previous record achieved during the height of the property boom right before the Asian financial crisis of 1997. Last year's prices at Filinvest City likewise were higher than the peak of P115,000 per square meter 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 chief executive officer Josephine Gotianun-Yap.

Riding on the growth of its residential business, FLI will expand its recurring business with the gross leasable area of its leasing assets expected to grow by 2.5 times over the next five years, Yap said.

"In line with this, FLI has 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. As such, about half of our capex program will go to investments in recurring income," she added.

Source: Interaksyon

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