Filinvest Land cuts unsold inventory by P4.1 billion on strong RFO sales

Filinvest Land Inc. (FLI) reduced its unsold residential inventory by P4.1 billion in the first quarter, as strong ready-for-occupancy (RFO) sales helped strengthen the property developer’s balance sheet amid a more selective market.

The company posted record RFO sales of P1.7 billion in the first quarter, which resulted in a decline in inventory and supported efforts to improve capital efficiency and boost liquidity, according to a disclosure to the stock exchange Monday.

The strategy of moving existing inventory allowed the company to maximize cash flow while reducing holding costs tied to unsold units, FLI said.

“Our priority has been to ensure that every peso of capital is working toward growth,” Filinvest Land president and chief executive Tristan Las Marias said.

“By successfully moving P4.1 billion in inventory this quarter, we have strengthened our balance sheet. This disciplined execution allows us to pursue new high-value opportunities with absolute confidence,” Las Marias said.

FLI said the stronger balance sheet and improved liquidity position would give it more flexibility to pursue expansion opportunities while maintaining financial discipline.

The company reported a net income of P904 million in the first quarter of the year, nearly steady from the same period last year. Consolidated revenues jumped 4.5 percent to P6.31 billion, driven by a rise in real estate revenues to P3.92 billion.

March reservation sales reached P2.7 billion, a 62 percent increase year-on-year. This growth was distributed across key regional hubs in Mindanao, Central Luzon and the National Capital Region, validating FLI’s focus on RFO inventory to meet immediate buyer demand.

Leasing revenues went up 17 percent to P744 million as mall occupancy reached 80 percent. Office leasing generated P1.26 billion in revenue, supported by a perfect 100-percent renewal rate for all first-quarter lease expiries.

The article was originally published in Manila Standard and written by Jenniffer B. Austria.

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