Filinvest Land, Inc. (FLI) reported a 41 percent drop in attributable net income to P3.73 billion last year from the P6.28 billion earned in 2019 due to the impact of the pandemic lockdown on its malls and residential businesses.

In a disclosure to the Philippine Stock Exchange, FLI said gross revenues were lower by 32 percent at P17.49 billion in 2020, with residential revenues declining by 42 percent to P9.84 billion. 

“Filinvest is no stranger to crises as we have weathered several economic and political upheavals in the past. There is no doubt that COVID19 is a formidable opponent whose grasp transcended industries and countries across the globe,” said FLI President Josephine Gotianun-Yap.

FLI saw its office leasing revenues grow by 8 percent in 2020 to P5.56 billion from P5.17 billion in 2019. It has 31 operational office buildings and 11 buildings under construction.

“We are pleased that our office leasing portfolio delivered stable revenues and managed to grow despite the COVID-19 pandemic,” said Gotianun-Yap.

FLI said it maintained its recovery trend in the last quarter of 2020 despite challenges posed by the sustained COVID community quarantines around the country.

The company reported a 50 percent increase in residential revenues at Php 3.17 billion in the fourth quarter of 2020, coming from P2.12 billion in the third quarter. 

For 2020, mall rental revenues registered a 55 percent drop to P828 million but a strong recovery was seen in the fourth quarter as it rose by 66 percent compared to the third quarter as Metro Manila and other cities moved to the less restrictive GCQ.

Mall foot traffic also doubled in the fourth quarter compared to third quarter of 2020. 

FLI said it intends to continue supporting its retail tenants by granting rental concessions to help them sustain their businesses.

Overall, proceeds from office leasing cushioned FLI’s recurring income from both retail and office leasing business from the impact of the pandemic ending the year with a slight 9 percent drop in aggregate rental revenues to hit P6.39 billion in 2020.

The growth in demand for the affordable and the middle-income housing segment, transition of key areas to GCQ and MGCQ in the second half of the year, resumption of construction and normalized buyer amortizations were major growth drivers for the period.

The company likewise saw a healthy rebound in residential reservation sales. This was a continuation of the upward trend in the third quarter, coming from the second quarter which was heavily impacted by construction restrictions during the quarantine period and the implementation of Bayanihan 1 and 2 deferment of customer payments. 

“With the light of vaccinated hope, we remain optimistic that the recovery trend we’ve seen in the last quarter of 2020 will be sustained well in 2021 as we maintain our priority in serving the needs of our stakeholders while keeping our employees safe and healthy,” said Gotianun Yap.