Property

FLI profit slumps due to lockdown

Gotianun-led Filinvest Land Inc.’s first half net income dropped by nearly a quarter to P2.42 billion due to the nationwide lockdown to control the COVID-19 pandemic.

Gross revenues dipped 30% to P8.81billion, reflecting the full impact of the community quarantines from mid-March to June which hampered operations and delayed construction activities.

“The second quarter was a most difficult time for the company with ECQ limiting the operations of our malls and construction restrictions affecting residential revenue recognition. Despite the challenges, we prioritized easing the burden ofour customers by providing payment grace periods or rental relief,” said Josephine Gotinaun-Yap, FLI president and CEO.

Rental revenues slightly went up by 1% to P3.42 billion with the growth in office leasing offsetting the decline in retail mall revenues.

Most of the company’s malls were closed for the duration of the ECQ, except for those delivering essential services such as supermarkets, drugstores and banks. Apart from this, FLI wived rent for its tenants.

Office buildings, on other hand, continued to enjoy high occupancy rates and remained operational during the hard lockdown.

Revenues from real estate operations declined by 46% to P4.56 billion resulting from lower sales take-up coupled with revenue recognition delay brought about by the construction restrictions during the quarantine period.

FLI also granted a grace period in homebuyers’ payments as support to its customers.

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