Filinvest Land Inc. income jumps to P475 million in first quarter

MANILA, Philippines – Filinvest Land Inc. (FLI), one of the country’s leading residential property developers, registered a 10-percent rise in its net income in the first quarter of 2009 to P475.8 million, from the P430.2-million reported during the same period last year.

This, as the company announced it plans to launch this year 29 new projects and phases with an estimated sales value of P7.4 billion, across all market segments.

Total revenues amounted to P1.43 billion, seven percent more than the P1.34- billion generated during the first three months on 2008. Real estate sales continued to account for the bulk at P948 million or 66 percent of total revenues, while rental income contributed P311 million, 16 percent more than the P269-million last year.

Residential sales reservations rose 14 percent to P1.87 billion despite the current global economic crisis, as demand for FLI’s core business of residential housing for the socialized, affordable and middle-income markets remained steady. 

Officials added that FLI’s newest product line – medium rise buildings (MRBs), continued to generate interest. MRB projects are inner city projects with several five-story buildings clustered around the project’s central amenity area. They noted that MRBs are attractive because they offer a much better living environment due to its low density development, compared to a high rise condominium building.

MRBs in inner city locations provide an alternative to buyers who do not want the daily commute to and from Laguna or Cavite, but cannot afford the high prices of high-rise condominium projects within Metro Manila.

FLI said it plans to add One Oasis Sta. Mesa in Manila to its growing portfolio of MRBs. The company currently has four MRB projects, namely: One Oasis Ortigas, Bali Oasis Marcos Highway, also in Pasig City; One Oasis Davao; and One Oasis Cebu.

Rental income generated from Festival Supermall, PBCom Tower and Northgate Cyberzone in Alabang contributed 22 percent to total revenues. The 16-percent year-on-year growth was attributed to higher lease rates on renewed leases and the contribution of iHub 1 and iHub 2 which came on stream during the second half of 2008.

In the first quarter, six new projects and phases have already been launched, with a sales value of P1.9 billion, equivalent to 26 percent of the full-year target.

New projects for 2009 include FLI’s first high-rise project, The Linear in Makati City. The project will have two 23-story L-shaped buildings with a common podium that will house common amenities as well as commercial spaces. Groundbreaking is slated before the end of this year.

During the first quarter of 2009, FLI signed a joint venture agreement with the Cebu City government to develop 50.6 hectares of the South Road Properties (SRP), a 300-hectare reclaimed land project. Under the agreement, FLI will develop 40 hectares under a revenue sharing agreement with the government. The 40 hectares will be developed in four phases over a 20-year period with FLI contributing the development costs, as well as the marketing and management services. Another 10.6 hectares will be purchased outright by FLI.