FILINVEST Land Inc. (FLI), one of the country’s largest integrated real-estate developers and business-process outsourcing (BPO) office providers, reported a record net income of P5.35 billion for the full year 2016, on the back of total revenues rising to P19.5 billion, 7 percent higher than the P18.3 billion recorded in 2015.
One of the largest sources of revenue growth was achieved by rental revenues of P3.38 billion for the full year 2016, 15 percent higher than the P2.95 billion recorded in 2015, as the firm booked increased revenues from its office buildings. Rental income now accounts for 40 percent of FLI’s net income.
FLI completed three new buildings in the last quarter of 2015, generating revenues in 2016. The company also completed two new buildings: “Filinvest Cyberzone Bay City 1 and 2” in the Bay area, with 37,000 square meters (sq m) of gross leasable area (GLA), which have been fully leased out. FLI now operates 21 office buildings totaling 312,000 sq m of GLA, a 50-percent increase in the last two years.
FLI is also growing its retail rental-space portfolio. Main Square Community Mall in Molino, Cavite, just opened its doors to shoppers, adding 28,000 sq m to FLI’s retail portfolio. Another new mall, the Fora Mall in Tagaytay, which will have 48,000 sq m of mall space, is scheduled to open in April 2017.
FLI is on track to hit its 1-million target of office and retail GLA by 2019 and a 50-50 income mix between its rental and trading businesses.
On the residential side, FLI continues to launch projects that address the needs of the affordable and middle-income markets, which remain to be underserved. More than 70 percent of FLI’s product offerings are house-and-lots and mid-rise buildings (MRB) located nationwide. FLI is set to invest an additional P5 billion in the next three years in Mindanao as it expands its Futura Homes economic housing and Spatial MRB affordable condominium portfolios with new projects in South Cotabato and Davao City.
FLI also launched residential projects in Metro Manila, Cavite, Rizal, Bulacan, Bacolod, Iloilo and other key locations last year. To date, FLI has developed more than 2,500 hectares of land and sold more than 160,000 housing units.
“We are happy to report that our plan to triple our recurring income portfolio is beginning to bear fruit as the rental business now provides substantial revenues for the company and mitigates the risks of a cyclical residential market. Our diversification strategy of having three main lines of business: residential sales, office rental and retail rental has put us in the best position to achieve synergies brought by integrated developments, as we develop townships where all three businesses can complement each other in one location. We are looking forward to FLI’s continued growth,” FLI CEO and President Josephine Gotianun Yap said.
FLI, together with parent company Filinvest Development Corp. (FDC), has signed a lease agreement with Clark Development Corp. (CDC) to develop, manage and operate the 200-hectare Clark Mimosa estate for a term of 50 years, renewable for another 25 years. The CDC board of directors recently approved Filinvest’s master plan to redevelop the estate into a mixed-use, leisure-based destination at the heart of the Clark Freeport Zone in Pampanga. Clark Mimosa will be developed as an integrated, smart and sustainable resort community, which will include a regional lifestyle and retail mall, a new office park and a variety of residential options from villas to mid-rise condominiums.FDC will undertake the hospitality and leisure segments, while FLI will handle the retail, office and residential components.
Last year FLI also signed a joint-venture agreement with the Bases Conversion and Development Authority (BCDA) for the development of the 288-hectare Phase 1 portion of the Clark Green City portion in Tarlac, after it won the bidding for the project. Clark Green City is envisioned to be the country’s newest sustainable urban community and globally competitive investment center that is smart, green and disaster-resilient. The BCDA board recently approved the boundaries and projected industrial, mixed-use, residential and institutional land uses of the Phase 1 parcel.