Sluggish office market weighs on Gotianun property firm’s bottomline

Filinvest Land Inc. (FLI) reported a 7.9 percent drop in its first quarter earnings to P678 million due to subdued leasing and lower office occupancy.
in a financial report filed with securities regulators, Gotianun-led FLI said total consolidated revenues and other income decreased by ₱38.43 million to ₱4.31 billion. This was largely due to lower revenues generated from the leasing business tempered by increased real estate sales revenues from residential business.
Rental and related services declined by 14.19 percent, mainly due to lower office leasing revenues as a result of lower occupancy caused by the pre-termination of leases from POGO tenants.
Real estate sales, on the other hand, grew 9 percent due to higher construction percentage of completion achieved during the period.
Reservation sales climbed 28 percent to P4.39 billion, driven by to high OFW sales and strong demand for housing products in Laguna, Cavite, Rizal, Bulacan, and Pampanga.
“We are pleased with the continued growth of our residential revenues, and we expect to sustain this momentum as the economy, both here and abroad, continues to open. Our OFWs are starting to gain traction once again, ” said FLI president Tristan Las Marias.
Marias said FLI would continue accelerating construction completions and rolling out projects in emerging markets with large unserved housing demand.
“We anticipate an improvement in rental revenues going forward now that the traffic has improved in malls and rental concessions will be reduced,” Marias said.