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 yr earlier attributable to lower real estate sales.
April-to-June consolidated revenue improved by 1.4% to P6.17 billion from P6.09 billion a yr 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 primary half, FLI said its attributable net income declined by 3.7% to P1.81 billion from P1.88 billion a yr 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 regular 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 primary 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 regular demand across the corporate’s office and retail portfolios.
Office rental revenue climbed by 8% to P2.48 billion, led by latest 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 attributable to stronger performance of assets corresponding to Festival Mall, Il Corso in Cebu, Important Square in Bacoor, Fora Mall in Tagaytay, and Filinvest Malls Dumaguete.
Within the second quarter, FLI said over 8,000 sq.m. of tenant GLA began operations, while over 10,000 sq.m. were signed for brand spanking new leases.
The whole operational GLA of the corporate’s retail portfolio stood at 257,170 sq.m.
FLI said its industrial business contributed P153 million in revenue for the primary half, of which P133 million got here from the sale of an industrial lot, while P20 million got here from recurring rental income.
All nine ready-built factories within the Filinvest Innovation Parks in Calamba and Latest Clark City are actually fully leased, with a complete GLA of 21,956 sq.m.
“Our focused efforts on targeted rent strategies and tighter cost controls have proven effective in boosting each occupancy and EBITDA, supporting the regular growth of our leasing business,” FLI President and Chief Executive Officer (CEO) Tristaneil D. Las Marias said.
“We’re optimistic that the upcoming openings of Filinvest Malls in Cubao and in Mimosa Leisure Estate in Clark will further drive this momentum. At the identical time, we proceed to push our residential developments in Visayas, Mindanao, and non-NCR Luzon regions, where we’re 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 attributable to improvements in operations and the addition of Festival Important Mall to its portfolio.
FLI previously transferred the ownership of the major mall constructing of Festival Mall in Alabang to FILRT. The mall began contributing to FILRT’s revenue stream on May 29.
With the extra asset, FILRT’s portfolio size increased by 37% when it comes to GLA to 452,310 sq.m.
“We’re pleased to have infused a value-adding asset to our portfolio through Festival Important Mall,” FILRT President and CEO Maricel Brion-Lirio said.
“Having this momentum, we look ahead to adding more assets and diversifying our tenant base to further the expansion of the corporate,” 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