Filinvest Land, Inc., the Gotianun Group’s publicly-listed property developer, reported an eight percent year-on-year improvement in consolidated attributable net income to P2.65 billion in the first nine months of 2024.
In a disclosure to the Philippine Stock Exchange, the firm said total consolidated revenues and other income rose 17 percent year-on-year to P18.44 billion, on the back of a 21 percent growth in booked residential real estate sales.
Leasing revenues, mostly from FLI’s office and retail businesses, grew seven percent to 5.71 billion pesos.
Operating profit increased 30 percent to P6.83 billion in the first nine months of 2024 due to growth across all three major business segments; residential, office leasing, and retail leasing; as well as interest income.
Among the three segments, Residential contributed the strongest growth, boosted by middle-income projects, as percentages of completion ramped up and more accounts were recognized as revenue.
Gross profit margins from the residential business, FLI’s core business segment, made a noteworthy seven percent improvement to 51 percent during the period from 44 percent last year, with better operational efficiency and the removal of capitalized interest.
“Our strategic focus on our core strengths in the residential business continued to pay off in the first nine months of 2024,” said FLI President and CEO Tristan Las Marias.
He noted that, “As the year comes to a close, we remain unstoppable in delivering property products relevant to Filipinos’ dynamic preferences. We believe that FLI’s success will mean greater value for all our stakeholders.”
“Filinvest remains a strong player in the leasing industry with office and retail offerings that attract a diverse array of tenants. Our shopping centers continue to thrive with exciting concepts and our offices can be tailor-fit to lessees’ specific needs.
“Furthermore, our push to improve occupancy and efficiency in office and retail leasing continues to bear fruit. Aside from this, we continue to be the government’s steadfast partner in nation-building as we deliver high-quality tenant spaces to serve our fellow citizens,” Las Marias added.
Filinvest Land’s residential real estate revenues increased a significant 21 percent year-on-year to P11.89 billion during the period as the middle-income segment saw percentages of completion ramping up and more accounts being recognized as revenue.
The 39 percent year-on-year growth of the middle-income segment drove the robust growth in Residential and remained the top contributor to residential revenues at 76 percent of total.
Meanwhile, reservation (option) sales for the period grew five percent to P15.93 billion, driven by a significant double-digit year-on-year surge in sales from Visayas projects, in addition to growth from top-selling medium-rise condominiums in Metro Manila, Zamboanga, and Davao.
Retail leasing revenues rose six percent year-on-year to P1.84 billion due to higher occupancy year-on-year and a stronger performance in net effective rents, alongside growth in ancillary businesses such as parking, amusement, and cinemas.
FLI’s office portfolio, including listed company Filinvest REIT Corp. (FILRT), achieved P3.50 billion in leasing revenues, up three percent year-on-year, with net effective rent and occupied GLA increasing year- on-year.