Filinvest Land Inc. (FLI) said profit last year reached P5.35 billion, up 4.9 percent from P5.1 billion in 2015.
Consolidated revenues hit P19.5 billion, up 7 percent compared to the prior year’s P18.3 billion.
“One of the largest sources of revenue growth was achieved by rental revenues of P3.38 billion for the full year 2016, 15 percent higher than P2.95 billion in 2015 as the firm booked increased revenues from its office buildings,” the company said.
Rental income accounts for 40 percent of total profit. FLI completed three new buildings in the last quarter of 2015 that started to generate revenues in 2016.
In 2016, the company completed two new buildings, Filinvest Cyberzone Bay City 1 and 2 in the Bay area, with 37,000 square meters of gross leasable area (GLA) which have been fully leased out.
FLI operates 21 office buildings with a gross leasable area (GLA) of 312,000 square meters (sq.m.).
FLI said it is also growing its retail rental space portfolio. opening Main Square Community Mal in Molino, Cavite which added 28,000 sq.m. to its portfolio.
Another mall, the Fora Mall in Tagaytay which will have 48,000 square meters of mall space, is scheduled to open by April.
“FLI is on track to hit its 1 million target of office and retail GLA by 2019 and a 50-50 income mix between its rental and trading businesses,” the company said.
For residential, FLI said it continues to launch projects that address the needs of the affordable and middle income markets, which remain to be underserved. More than 70 percent of the company’s product offerings are house-and-lots and mid-rise buildings (MRB).
The company said it plans to sink an additional P5 billion in the next three years in Mindanao as it expands its Futura Homes economic housing and Spatial MRB affordable condominium portfolios with new projects in South Cotabato and Davao City.
“FLI also launched residential projects in Metro Manila, Cavite, Rizal, Bulacan, Bacolod, Iloilo and other key locations last year. To date, FLI has developed more than 2,500 hectares of land and sold more than 160,000 housing units,” it said.
“Our plan to triple our recurring income portfolio is beginning to bear fruit as the rental business now provides substantial revenues for the company and mitigates the risks of a cyclical residential market. Our diversification strategy of having three main lines of business: residential sales, office rental and retail rental has put us in the best position to achieve synergies brought by integrated developments, as we develop townships where all three businesses can complement each other in one location. We are looking forward to FLI’s continued growth,” said Josephine Gotianun Yap, FLI president.
FLI, together with parent company Filinvest Development Corp. (FDC) have signed a lease agreement with Clark Development Corp. to develop, manage and operate the 200-hectare Clark Mimosa estate for a term of 50 years, renewable for another 25 years.
Last year, FLI also signed a joint venture agreement with the Bases Conversion and Development Authority (BCDA) for the development of the 288-hectare Phase 1 portion of the landmark Clark Green City portion in Tarlac, after it won the bidding for the project.