Gotianun-led Filinvest Land Inc. saw its first quarter profit decline by 23.4% to P1.4 billion as sales dived owing to the Luzon-wide lockdown imposed by the government and eruption of the Taal volcano in January.
Consolidated revenues fell 28.5% to P5.15 billion, largely due to the 39.5% drop in real estate sales to P3.09 billion and delays in the completion of projects.
FLI granted a grace period or in-homebuyers’ payments as support to its customers during the ECQ which affected real estate sales.
Rental and related services rose 3.86% o P1.79 billion due to higher rental revenue arising from the increase in occupancy of office spaces, mainly in Filinvest Axis Tower 1 and Tower 2, Cebu Cyberzone and Vector 2.
The increase in office leasing revenue is offset by the decrease in rental income from malls and other commercial centers due to their closure during the quarantine.
Other income also fell by 32.7 to P98.34 million mainly due to the deconsolidation of Pro-Excel Property Managers effective in December 2019.
The group’s equity in net earnings of associates plunged by 62.8% to P21.01 million due to lower net income reported by Filinvest Alabang Inc.
Prior to the lockdown, FLI was able to launch three projects worth P2.1 billion. It was originally looking to launch P13.4 billion worth of residential projects.
FLI chief executive officer and president Josephine Gotianun-Yap said the company would prioritize the completion of projects that are already under construction and those that 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.
We have also allocated resources for the completion of additional office buildings as well as the logistics hub, Filinvest Innovation Park at New Clark City, which we foresee will play a significant role in the shift to e-commerce , and the development of our townships,” she said.