Filinvest Land, Inc., the publicly listed property developer of the Gotianun Group, reported an eight percent year-on-year increase in consolidated attributable net income, reaching P2.65 billion in the first nine months of 2024.
In a disclosure to the Philippine Stock Exchange, the company revealed that total consolidated revenues and other income rose 17 percent year-on-year to P18.44 billion. This growth was driven by a 21 percent increase in booked residential real estate sales.
Leasing revenues, primarily from FLI's office and retail businesses, grew seven percent, amounting to P5.71 billion. Furthermore, operating profit surged by 30 percent to P6.83 billion during the same period, supported by growth across all three major business segments: residential, office leasing, and retail leasing, as well as an increase in interest income.
Among these segments, the residential sector demonstrated the strongest growth, driven by middle-income projects as completion percentages increased and more accounts were recognized as revenue. Gross profit margins from the residential segment, FLI's core business area, improved significantly by seven percent to 51 percent, up from 44 percent in the previous year, due to enhanced operational efficiency and the elimination of capitalized interest.
“Our strategic focus on our core strengths in the residential business has continued to pay off in the first nine months of 2024,” stated FLI President and CEO Tristan Las Marias. He added, “As we approach the end of the year, we remain committed to delivering property products that meet the dynamic preferences of Filipinos. We believe that FLI’s success translates into greater value for all our stakeholders.”
Las Marias also emphasized, “Filinvest remains a strong player in the leasing industry with office and retail offerings that attract a wide range of tenants. Our shopping centers continue to flourish with innovative concepts, and our office spaces can be customized to meet lessees' specific needs. Furthermore, our efforts to enhance occupancy and efficiency in both office and retail leasing are yielding positive results. Alongside this, we continue to be a reliable partner for the government in nation-building by providing high-quality tenant spaces to serve our fellow citizens.”
During this period, Filinvest Land’s residential real estate revenues grew significantly by 21 percent year-on-year, reaching P11.89 billion, as the middle-income segment experienced completion percentages rising and more accounts being recognized as revenue. The robust 39 percent year-on-year growth of the middle-income segment was the primary driver of this increase, contributing to 76 percent of total residential revenues.
Additionally, reservation sales for the period grew by five percent to P15.93 billion, propelled by a substantial double-digit year-on-year increase in sales from projects in the Visayas, along with growth in top-selling medium-rise condominiums located in Metro Manila, Zamboanga, and Davao.
Retail leasing revenues climbed six percent year-on-year, totaling P1.84 billion, as a result of higher occupancy rates and stronger performance in net effective rents, along with growth in ancillary businesses such as parking, amusement, and cinemas.
FLI’s office portfolio, which includes the listed company Filinvest REIT Corp. (FILRT), achieved P3.50 billion in leasing revenues, reflecting a three percent year-on-year increase, with net effective rent and occupied GLA both rising year-on-year.