GOTIANUN-LED property developer Filinvest Land, Inc. (FLI) saw a 9.9% drop in attributable net income for the second quarter (Q2) to P909.29 million from P1.01 billion a year earlier due to lower real estate sales.
April-to-June consolidated revenue improved by 1.4% to P6.17 billion from P6.09 billion a year ago, FLI said in a regulatory filing.
Real estate sales declined by 5% to P3.78 billion, while rental services rose by 6.6% to P2.04 billion from P1.91 billion.
For the first half, FLI said its attributable net income declined by 3.7% to P1.81 billion from P1.88 billion a year earlier as total costs and expenses increased by 9% to P9.72 billion.
Consolidated revenue rose by 6% to P12.21 billion.
Real estate sales grew by 1.3% to P7.5 billion on steady collections, ongoing project completions, and contributions from industrial lot sales.
In its residential business, FLI said the middle-income segment contributed 70% of total residential revenues in the first half.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 2% to P2.7 billion.
Leasing revenue rose by 12% to P4.1 billion on steady demand across the company’s office and retail portfolios.
Office rental revenue climbed by 8% to P2.48 billion, led by new tenant sign-ups and an 11% increase in occupied gross leasable area (GLA), bringing total occupied space to 398,000 square meters (sq.m.).
Retail leasing revenue rose by 11% to P1.32 billion due to stronger performance of assets such as Festival Mall, Il Corso in Cebu, Main Square in Bacoor, Fora Mall in Tagaytay, and Filinvest Malls Dumaguete.
In the second quarter, FLI said over 8,000 sq.m. of tenant GLA began operations, while over 10,000 sq.m. were signed for new leases.
The total operational GLA of the company’s retail portfolio stood at 257,170 sq.m.
FLI said its industrial business contributed P153 million in revenue for the first half, of which P133 million came from the sale of an industrial lot, while P20 million came from recurring rental income.
All nine ready-built factories in the Filinvest Innovation Parks in Calamba and New Clark City are now fully leased, with a total GLA of 21,956 sq.m.
“Our focused efforts on targeted rent strategies and tighter cost controls have proven effective in boosting both occupancy and EBITDA, supporting the steady growth of our leasing business,” FLI President and Chief Executive Officer (CEO) Tristaneil D. Las Marias said.
“We are optimistic that the upcoming openings of Filinvest Malls in Cubao and in Mimosa Leisure Estate in Clark will further drive this momentum. At the same time, we continue to push our residential developments in Visayas, Mindanao, and non-NCR Luzon regions, where we are seeing sustained demand,” he added.
In a separate disclosure, FLI’s real estate investment trust Filinvest REIT Corp. (FILRT) said it posted an 8.3% increase in first-half net income to P651 million as revenue climbed by 13% to P1.57 billion due to improvements in operations and the addition of Festival Main Mall to its portfolio.
FLI previously transferred the ownership of the main mall building of Festival Mall in Alabang to FILRT. The mall began contributing to FILRT’s revenue stream on May 29.
With the additional asset, FILRT’s portfolio size increased by 37% in terms of GLA to 452,310 sq.m.
“We are pleased to have infused a value-adding asset to our portfolio through Festival Main Mall,” FILRT President and CEO Maricel Brion-Lirio said.
“Having this momentum, we look forward to adding more assets and diversifying our tenant base to further the growth of the company,” she added.
On Thursday, FLI shares were unchanged at 82 centavos apiece, while FILRT stocks dropped by 0.29% or one centavo to P3.48 per share. — Revin Mikhael D. Ochave
