Filinvest Land Inc. (FLI) has set P20 billion in capital spending this year, half of which will go to the development of commercial assets to boost its recurring earnings in the years ahead.
In a presentation to stockholders Friday, FLI president Josephine Gotianun-Yap said the company would invest around P10 billion to grow leasing assets.
In the next four years, it plans to increase its portfolio in terms of gross leasable area (GLA) by 2.5 times the level seen at the end of 2013. By 2018, its GLA may reach 870,000 from the 346,000 square meters registered at the end of last year, she said.
This year, 30 percent of FLI’s capital spending will be used to boost its retail portfolio, while 19 percent has been earmarked for its office portfolio. Its residential business will get 43 percent of this year’s budget.
At present, Yap said, FLI derives 30 percent of its net income from its leasing portfolio while 70 percent came from residential development.
This year, FLI will roll out 22 projects worth P17.5 billion. She said that the company’s affordable and mid-income housing segments accounted for most of the projects.
Yap is confident that FLI’s first quarter earnings will be “positive” given consistent sales growth from mid-rise projects and income from its rental and leased spaces.
“So far, we are on track with our projections, which is between 15 to 20 percent,” Yap said.
FLI has been growing revenues at a compounded annual rate of 25 percent in the last five years.
In 2013, FLI reported a 14 percent year-on-year rise in net income to P4 billion compared to the P3.5 billion posted the previous year. Doris C. Dumlao