FILINVEST Land, Inc. (FLI) is optimistic in maintaining its growth momentum due to the “improving business environment” and because of its strong residential business segment.
“The business environment is improving and our growth in sales and revenues in the residential segment mirrors the same trend,” FLI EVP and Chief Strategy Officer Tristaneil D. Las Marias said in a statement on Monday.
“We are also more prepared now in our construction sites which allowed us to sustain our construction progress better this year despite the reimposition of lockdowns,” he added.
According to a separate disclosure to the exchange on Monday, FLI’s attributable net income grew 71% to P569.68 million in the third quarter from P332.83 million year on year. Its topline also rose 6% to P4.29 billion from P4.04 billion.
Real estate sales went up by 36% to P2.87 billion from P2.12 billion in the same period last year. Residential sales from the third quarter cushioned the 26% decline in rental services to P1.42 billion from P1.92 billion.
For January to September, FLI profit grew 21% to P3.19 billion from P2.63 billion last year. Total revenue inched down 0.38% to P12.47 billion from P12.51 billion.
However, revenues from its residential business posted a 23% growth to P8.19 billion from P6.67 billion. FLI said the growth was driven by its continued construction progress and the 17.5% increase in reservation sales, which totaled P14 billion.
Meanwhile, FLI said “rental revenues remain sluggish,” declining by 27% to P4.28 billion from last year’s P5.84 billion because of pandemic restrictions.
FLI remains optimistic in maintaining its growth momentum.
“As the economy continues to reopen, we see mobility and business activity further improving in the fourth quarter. We are optimistic that we will be able to sustain our growth momentum onwards,” Mr. Las Marias said.
The listed property developer spent P6.7 billion in capital expenditures as of September this year, 44% of which were spent on residential developments, 32% on office developments, and the balance on retail, innovation or logistics parks, and land acquisition.
FLI-sponsored real estate investment trust (REIT) Filinvest REIT Corp. (FILREIT) also raised P12.58 billion from its initial public offering (IPO) in July. FILREIT made its market debut in August, while proceeds from its IPO will be used to fund its office, industrial, retail, and residential projects.
“The proceeds from the [FILREIT] IPO will allow FLI to accelerate growth in its various businesses as we prepare for the economic recovery,” FLI President and Chief Executive Officer Lourdes Josephine Gotianun-Yap said.
FLI shares on Monday declined 1.80% or two centavos to close at P1.13 each. — Keren Concepcion G. Valmonte