LISTED property developer Filinvest Land Inc. reported on Friday that its consolidated net income for 2015 jumped by 11 percent to P5.1 billion from the P4.61 billion recorded in the previous year.
In a disclosure to the Philippine Stock Exchange, FLI said the growth was driven by strong demand for its business process outsourcing (BPO) offices and increased revenues from its residential sales.
Meanwhile, consolidated revenues for 2015 increased 7 percent to P18.3 billion from P17.06 billion in 2014.
FLI also attributed the profit growth to its ability to manage costs. It said real estate sales costs and rental services increased by a mere 5 percent while general, administrative, selling and marketing expenses declined by 5 percent.
It said revenues from rental assets rose 12 percent from a year earlier to P2.95 billion. It said this is in line with its target to triple its recurring income portfolio from its 2014 levels to 1 million square meters of leasable space by 2019.
FLI currently operates 14 buildings in Northgate Cyberzone and one building on EDSA in Mandaluyong, all of which are fully occupied.
“As of the first quarter of 2016, three new buildings totaling 68,000 square meters of gross leasable area (GLA) in Northgate Cyberzone, Alabang and Cyberzone Cebu were in the process of being turned over to locators. The new additions increased FLI’s office rental portfolio by 33 percent to 275,000 square meters at the end of 2015,” FLI said.
Aside from boosting its office portfolio, FLI also aims to grow its retail space portfolio as it is in the midst of expanding existing retail developments as well as building new ones.
It said that Festival Mall in Alabang, which measures over 135,000 square meters of retail space, is going to be expanded as it plans to add more than 45,000 more square meters of retail space.
The company said that among the ongoing retail developments are: the “Fora Mall” which will have 32,000 square meters of mall space in “Fora” adjacent to “Fora Residences” located strategically at the Tagaytay rotunda; “Center Square Community Mall” in Molino, Cavite which is part of our Princeton residential development and will add 20,000 square meters in new retail space; and the 36,000 square meter “Il Corso Mall” , the seaside lifestyle mall located in City di Mare, a township development at the South Road Properties in Cebu City.
It said it expects to double its retail portfolio by the end of the year to more than 275,000 square meters.
FLI aims to launch more projects this year, targeting its core market of first-time home buyers and ultimate end-users.
In 2015, FLI launched projects worth P12.5 billion, which translates to approximately 6,000 units. These include Marina Spatial-Dumaguete; Futura Homes Mactan; Studio 7 and Flora Residences.
“We are confident that we will be able to sustain FLI’s growth momentum in 2016 as we launch new residential projects and complete our planned office and retail buildings,” FLI president and CEO Josephine Gotianun Yap said.
“We are on track with our plans to triple the GLA of our rental assets by the end of 2019,” she added.