FILINVEST LAND, Inc. (FLI) retained the highest credit rating for its outstanding bonds worth P22 billion, according to a local debt watcher.
In a statement, Philippine Ratings Services Corp. (PhilRatings) said it gave the Gotianun-led property developer a PRS Aaa rating for its outstanding bonds. This consists of P4.3 billion due 2020, P5.3 billion due in 2021, P7 billion due in 2022, P2.7 billion due in 2023, P1.7 billion due in 2024, and P1 billion due in 2025.
The PRS Aaa rating indicates that the obligations are of the highest quality with minimal credit risk, with the issuer having an “extremely strong” capacity to meet its financial commitment.
The rating was also assigned a stable outlook, which means that it is unlikely to change in the next 12 months.
PhilRatings took into account the company’s established brand name, geographically diverse real estate products and substantial land bank, sound growth strategies, strong income generation and positive cash flows, as well as the favorable outlook for the property industry.
“For 2017, 2018 and in the first quarter of 2019, the company had consistently posted growth in both its total revenues and total net income. Such was achieved mainly on the back of FLI’s leasing business expansion,” the debt watcher said.
FLI has P30 billion worth of projects lined up for the year, almost double the P16 billion it launched in 2018. This is in line with the company’s plan to increase its gross leasable area (GLA) to 1.66 million square meters (sq.m.) from its office and retail portfolio by 2023. This year alone, it is on track to have 1 million sq.m. of GLA under its network.
The company is also working on having an equal share of revenues from real estate sales and its leasing segment by 2021, coming from the former’s 72% contribution in 2018. Its office developments are mainly located in Northgate Cyberzone-Filinvest City in Muntinlupa; Filinvest Mimosa+ Leisure City in Clark, Pampanga; and in Cebu City.
PhilRatings also highlighted FLI’s land bank, which stood at about 2,039.3 hectares of raw land as of end-March. This includes about 228.5 hectares under joint venture agreements.
FLI’s net income attributable to the parent grew 24% to P1.79 billion in the first quarter of 2019, after gross revenues also surged 17% to P6.83 billion.
Incorporated in 1989, FLI is the real estate arm of Filinvest Development Corp., which also has investments in banking, power, sugar, and the hospitality sector. — Arra B. Francia