MANILA, Philippines - Gotianun family-led property developer Filinvest Land Inc. (FLI) reported a net income of P4 billion in 2013, 14 percent higher than the P3.5 billion it posted in 2012.
Filinvest Land attributed the increase in profits to the 16% jump in total revenues from its residential, office and commercial business units to P13.6 billion in 2013.
The company said revenues were driven by the 19% rise in real estate sales to P10.5 billion.
"The hike in real estate sales was driven by the sustained sales take-up generated during the year, as well as the completion of more mid-rise buildings (MRB) and house-and-lot projects," FLI said.
In 2013, Filinvest Land launched 17 projects, comprising 6 new
mid-rise buildings and 11 new phases in existing horizontal projects. These new projects include San Remo Oasis, The Levels and Studio Zen.
FLI said rental income jumped 8% to P2.04 billion due to higher rental income and sustained high occupancy in existing mall and offices spaces as well as from new spaces in EDSA Transcom Building and Northgate Cyberzone in Filinvest City.
The company said equity in net earnings from FLI affiliate Filinvest Alabang, Inc. remained stable at P187 million. FAI, which is the developer of Filinvest City, sold lots with a total area of 1.7 hectares to various buyers in 2013.
FLI President and CEO Josephine Gotianun-Yap said the company's improved performance in the future will be driven by growth strategies that are now starting to pay off.
"In tandem with the growth in FLI’s residential development business, we are now aggressively building up our recurring business with a much wider geographic coverage. We expect our leasing assets GLA to grow 2.5x over the next five years from 2013 levels," Gotianun-Yap said.
She said FLI has acquired properties in Metro Manila that are 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 said.