EARNINGS of Filinvest Land, Inc. (FLI) dropped 25% in the first quarter due to business disruptions caused by the coronavirus disease 2019 (COVID-19) pandemic.

The Gotianun-led real estate company said its attributable net income slid to P1.35 billion from P1.79 billion in the previous year. Its gross revenues likewise declined 29% to P5.15 billion.

“The results reflect the impact of the COVID-19 enhanced community quarantine (ECQ) in the latter half of March that affected operations and delayed construction activities,” it said in a statement.

Revenues from real estate sales fell 39% during the quarter, which FLI traced to lower sales take-up in 2019 and project delays due to the ECQ. The company also gave a grace period to its homebuyers to help in the ongoing pandemic.

Rental revenues inched up 4% to P1.79 billion because of growth in its office leasing segment. The sustained operations of office buildings despite the ECQ offset lower revenues from retail malls, which slowed due to the waiving of rent for establishments that were closed since mid-March.

“Our focus right now is to serve our customers thru financial relief for our affordable and middle income clients during ECQ as well as new safety protocols and conveniences for our homeowners,” FLI President and Chief Executive Officer Josephine Gotianun-Yap said in a statement.

“As we deal with the effects of the pandemic, we are also reviewing and reassessing our plans,” she added.

The company has a plan to launch a total of P13.4-billion worth of residential projects this year. In the first three months, FLI has already launched three projects worth P2.1 billion.

Ms. Yap said the priority will be to complete projects that are already under construction and those that will address the immediate needs of clients and homebuyers.

“We will be launching residential projects and selectively expand in new territories within the country. We have moved a large part of our planned launches to 2021 though we can easily accelerate their launches if there is an improvement in market demand,” she said.

Apart from residential projects, FLI is also looking to complete new office buildings and a logistics hub in New Clark City.

“We have reconfigured our processes to maximize the use of digital technology that we have implemented in the past to service the needs of our clients and our suppliers. Meanwhile, we are also preparing for the economy’s eventual recovery,” Ms. Yap said.

Earlier this week, FLI said it earmarked P16 billion for capital expenditures this year.

Shares in FLI at the stock exchange closed flat on Thursday at 93 centavos each. — Denise A. Valdez