Residential segment lifts Filinvest Land profit
Gotianun-led developer Filinvest Land Inc. (FLI) defied an industry-wide slump as it booked an 11-percent growth in first-semester net income, which reached P1.54 billion after launching new projects and expanding existing properties to cater to growing demand.
FLI on Tuesday said revenues during the period reached P11.49 billion, up by 16 percent, as residential real estate sales grew.
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“Our robust first-half results show that Filinvest Land’s residential business continues to thrive,” FLI president and CEO Tristan Las Marias said in a statement. “FLI delivered strong growth amid the current interest rate environment.”
Six-month residential real estate sales surged by 22 percent to P7.38 billion, following the completion of additional buildings in Panglao Oasis in Taguig City, Alta Spatial in Valenzuela City and Marina Spatial in Dumaguete, Negros Oriental.
Reservation sales, on the other hand, grew by 16 percent to P12.84 billion as medium-rise condominiums and economic house-and-lot villages registered higher take-up sales.FLI launched P14.70 billion worth of residential projects in the first half, pushing past the halfway point of its P25-billion target for the year.
Article continues after this advertisementAccording to the company, it plans to launch new townships with retail, wellness and transport amenities outside Metro Manila, including Davao City and the provinces of Cavite, Laguna, Batangas and Rizal.
Article continues after this advertisementREAD: Filinvest Development income up 36% on strong growth of units
The improved performance of FLI’s residential segment came even as property consultancy firms reported that developers launched less projects in the first half as high interest rates discouraged customers, particularly in the middle-income segment, from buying new property.
Experts said this was why developers opted to launch premium projects, as customers in this segment were less affected by high interest rates.
On the retail side, leasing revenues rose by 9 percent to P1.9 billion.
FLI plans to launch later this year its flagship Japanese brands and casual dining restaurants at Festival Mall in Alabang, its largest mall.
Filinvest Malls Dumaguete is also scheduled to open in the latter half within the 1.9-hectare Marina Town.
The office portfolio under listed Filinvest REIT Corp. and other subsidiaries posted flat leasing revenues at P2.29 billion due to “challenges in the sector.” —Meg J. Adonis
