Filinvest Land Inc. (FLI), one of the Gotianun Group’s property development arms, reported an 11 percent hike in consolidated attributable net income to P1.54 billion for the first half of 2024.
In a disclosure to the Philippine Stock Exchange (PSE), the firm said gross profit margins from the residential business, FLI’s core business segment, significantly improved to 51 percent from 43 percent the year before.
Consolidated EBITDA rose 24 percent year-on-year to P4.98 billion, while operating income grew 26 percent to P4.18 billion.
In the first half of 2024, FLI launched 10 new projects, including completely new developments, as well as sequel buildings and phases of existing ones.
Total consolidated revenues and other income grew by 16 percent from the previous year to P11.49 billion, bolstered by a noteworthy double-digit rise in residential real estate sales, in addition to increasing revenues from retail and co-living spaces in New Clark City.
“Our robust first half results show that Filinvest Land’s residential business continues to thrive. FLI delivered strong growth amidst the current interest rate environment,” said FLI President and CEO Tristan Las Marias.
He noted that “we achieved this through the continued strength of our brand, known for value-for-money homes in well-rounded communities across the Philippines.”
“FLI’s leasing segments continue to be value-adding complements to our business. We are working to enhance our shopping centers with world-class brands and to open new malls in underserved population hubs. In addition, more government agencies lease our premier office spaces to deliver better public services,” Las Marias continued.
FLI’s residential real estate sales rose 22 percent year-on-year to P7.38 billion during the period. Reservation (option) sales for the period grew 16 percent to P12.84 billion.
FLI’s medium-rise condominiums and economic house-and-lot villages remain top contributors to take-up, propelled by a significant ramp-up in launches, with new demand arising from a higher ceiling on the VAT-free segment.
In the first half of 2024, FLI launched 10 new projects worth an estimated P14.70 billion. With these new projects, FLI is now over halfway through its target of P25 billion worth of new launches by the end of 2024.
Retail leasing revenues rose nine percent year-on-year to P1.19 billion. Net effective rents improved four percent to P819 per sqm, while occupancy rates stood at 69 percent at the end of June 2024 as the market continues to digest newly opened retail space.
FLI’s office portfolio, comprised of listed company Filinvest REIT Corp. (FILRT) and other subsidiaries achieved P2.29 billion in leasing revenues, slightly down by less than one percent from year-ago levels despite challenges in the sector.
As at the end of June 2024, the office leasing segment has secured completely new leases of over 29,000 sqm and letters of intent for 32,000 sqm of leasable area.
On top of this, signed renewal contracts have reached over 45,000 sqm, in addition to renewal letters of intent, which stood at over 15,000 sqm.
FLI’s co-living business The Crib Clark at Filinvest Mimosa+ Leisure City booked P116 million in total revenues and continued to fully lease out its 3,312 beds in the first half of 2024.
In addition, FLI’s industrial parks continued to deliver rental revenues. Four new ready-built factories (RBFs) have been recently completed at the Filinvest Calamba Technopark in Laguna and another three RBFs at its Filinvest Innovation Park in New Clark City are expected to be finished by year-end.