LISTED property developer Filinvest Land Inc. (FLI) saw its net income grow nearly 5 percent last year on the back of higher office and mall rental sales and residential revenues.
In a disclosure to the Philippine Stock Exchange on Monday, FLI said its net income hit a record P5.35 billion in 2016, a 4.9 percent improvement from the P5.09 billion recorded in 2015.
Revenues went up 7 percent to P19.5 billion from P18.5 billion in the previous year.
Rental income, which accounted for 40 percent of net income, was 15 percent higher at P3.38 billion on increased revenues from new and existing office buildings.
The company completed three new office towers in the last quarter of 2015. It also completed two new office buildings, Filinvest Cyberzone Bay City towers 1 and 2, which have been fully leased out.
FLI now operates 21 office towers with gross leasable area (GLA) of 312,000 square meters (sqms), a 50 percent increase over the last two years.
FLI also expanded its retail mall portfolio by 28,000 sqms after opening Main Square Community Mall in Molino, Cavite. It will open another mall, called Fora Mall, in Tagaytay in April, with 48,000 sqms of additional mall space.
FLI has also pledged to invest P5 billion over the next three years in Mindanao to build economic housing units, mid-rise residential buildings, and affordable condominium towers.
To date, it has developed more than 2,500 hectares of land and sold more than 160,000 housing units, 70 percent of which belong to the house-and-lot and mid-rise building formats.
“We are happy to report that 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,” FLI Chief Executive Officer and President Josephine Gotianun Yap said.
Recently, FLI and its parent Filinvest Development Corp. (FDC) inked a lease agreement with Clark Development Corp. (CDC) to develop, manage and operate the 200-hectare Clark Mimosa estate for a span of 50 years, renewable for another 25 years.
In 2016, 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.