by James A. Loyola
Filinvest Land, Inc. (FLI), the property development arm of the Gotianun family, reported that its net income hit a record P5.35 billion last year, from P5.1 billion in 2015, on the back of a 7 percent hike in revenues to P19.50 billion from P18.30 billion 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 P2.95 billion in 2015 as the firm booked increased revenues from its office buildings.
In a disclosure to the Philippine Stock Exchange, FLI said rental income now accounts for 40 percent of its net income.
“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,” FLI President Josephine Gotianun Yap said.
She added that, “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 completed three new buildings in the last quarter of 2015 and these have started to generate revenues in 2016.