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Profits up for property firms Filinvest and Century

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FILINVEST Land, Inc. (FLI) and Century Properties Group, Inc. (CPG) both reported higher profits for the first six months of 2018, buoyed by the strength of their respective property businesses.

In a statement issued Friday, FLI said net income accelerated by 9% to P2.88 billion from January to June, as revenues improved by 6% to P10.65 billion.

The Gotianun-led firm observed a 28% increase in rental revenues to P2.6 billion for the period, following the completion of more office and retail buildings. Recurring income now accounts for 43% of the company’s total profit, in line with its goal for the unit to contribute a larger share to earnings in the coming years.

FLI currently has 27 office and retail developments spanning 595,000 square meters (sq.m.) in gross leasable area (GLA). The company looks to end the year with an additional GLA of 200,000 sq.m. With this, the firm said it is on track to meet its target of 1.5 million sq.m. in terms of GLA by 2022.

Meanwhile, the company launched P16 billion worth of residential projects during the first half, catering to the affordable and middle income markets with its Futura and Aspire brands.

“We are looking forward to the company’s further growth as we complete our investment property expansion plan. We expect profitability to increase as our newly opened office buildings and shopping malls stabilize, and additional office buildings become operational within the year. We forecast residential revenues to remain stable,” FLI President and Chief Executive Officer Josephine Gotianun-Yap said in a statement.

On the other hand, CPG’s net income went up 10% to P490 million during the first half, after revenues jumped 40% to P4.7 billion. The company attributed the increase to the sales of units in its residential condominium projects.

This includes sales of units in the Boracay Tower of Azure Urban Resort Residences in Parañaque City, the Iguazu tower of the Acqua Private Residences in Mandaluyong, and the Roxas West, Quirino West, and Quezon South Towers of The Residences in Quezon City. The buildings have a combined sales value of P15 billion from 3,500 units.

“We see this positive trend in our bottom line to continue. While we continue to recognize the revenue from the unit inventory of our condominium developments, we are also seeing a higher income stream from our new allied real estate segments,” CPG Chief Financial Officer and Head for Investor Relations Ponciano S. Carreon, Jr. said in a statement.

The Antonio-led firm also saw P500 million in revenue contribution from its Phirst Park Homes, its affordable housing segment. The company diversified into the affordable market in 2017 in a bid to take advantage of the lack of housing units in the country, translating to a housing backlog of six million homes.

“As the company’s diversification program starts to bear fruit, we will continue to work towards improving operational efficiencies to maximize growth opportunities and deliver more value to our shareholders in the near future,” Mr. Carreon said.

Shares in FLI gained 3.45% or five centavos to close at P1.50 each at the stock exchange on Friday, while shares in CPG rose 6.74% or three centavos to close at 47.5 centavos each. — Arra B. Francia