FLI income down by 45% in Q1

Filinvest Land Inc. (FLI) said its income for the first quarter fell 45 percent to P736 million from last year’s P1.35 billion due to the decline in its sales and leasing revenues.

Gross revenues were down 19 percent to P4.35 billion from last year’s P5.37 billion. Residential revenues declined 20 percent to P2.47 billion from P3.09 billion last year, while leasing revenues fell by 17 percent.

For the first quarter, its residential reservation sales reached P3.44 billion, down 29 percent from the previous year’s P4.87 billion, but flat compared with the fourth quarter’s P3.36 billion. The company said this signals that demand for the company’s affordable and mid-income housing products remains resilient.

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Filinvest Land said it plans to retain its stronghold on the affordable segment through its Futura brand and the mid-income segment through its lifestyle Aspire brand.

It has a P30-billion pipeline of residential projects and is looking to expand to new areas across the country, such as Bataan, Naga, Dagupan and General Santos.

“We prioritize first time homeowners and the ultimate end users market. Our brands, Aspire and Futura, provide more depth within this market segment through a whole range of housing products addressing budget constraints and lifestyle preferences. We are committed to build the Filipino dream and FLI differentiates itself with more sustainable communities of lower density and larger open spaces,” FLI President and CEO Josephine Gotianun Yap said.

Capital expenditures for the first quarter reached P3.08 billion with 59 percent going to residential developments, 30 percent to office developments and the balance to retail, industrial and logistics parks and land acquisition.

“We remain optimistic that despite the challenges, 2021 will be a better year. We look forward to further growing our residential and leasing businesses, as well as our new initiatives, such as the industrial and logistics parks; as we serve the needs of our stakeholders while observing safety and health protocols,” Yap said.

The property development arm of the Gotianun group reported in March that its attributable net income for the entire 2020 fell 41 percent to P3.73 billion, from the previous year’s P6.28 billion, due to the effects of the pandemic on most of its operations.

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Revenues, meanwhile, fell 27 percent to P17.49 billion from the previous year’s P24.02 billion, with residential revenues declining by 42 percent to P9.84 billion.

The company said its office leasing revenues grew by 8 percent in 2020 to P5.56 billion, from P5.17 billion in 2019. FLI has 31 operational office buildings and 11 buildings under construction that will be completed in the next two years, with a total gross leasable area of over 750,000 square meters in Metro Manila, Clark and Cebu.

Mall rental revenues registered a 55-percent drop in 2020 to P828 million due to the community quarantine restrictions. FLI said it intends to continue supporting its retail tenants by granting rental concessions to help them sustain their businesses.

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Article and Photo originally posted by Business Mirror last May 18, 2021 and written by VG Cabuag.

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