Listed Filinvest Land Inc., the property development arm of the Gotianun group, looks to turn around the occupancy rate of assets excluded from its real estate investment trust by next year.
Lourdes Josephine Gotianun-Yap, FLI chief executive, said the company has seen an increase in demand for office spaces, which was hurt by the work-from-home policy of business process outsourcing firms and the contract termination of POGO or Philippine offshore gaming operators.
“For these non-REIT assets, given the strategic locations, we are confident of occupancy recovery by 2024. We have set our priorities going forward. Our first order of business will be to build back revenue streams to pre-pandemic levels by growing our assets,” Gotianun-Yap said.
She reported the past decade had seen their residential business grow at a compounded annual growth rate of 17 percent and its rental business by 31 percent.
“And we aim to get back on this track,” she said.
FLI president Tristaneil D. Las Marias said the target will help the company improve on the 20 percent increase in income before income tax of around P4 billion, and the 12 percent increase in revenues of another P20 billion.
“We believe the Metro Manila market will continue to grow, especially now that most companies have required employees to work on site either full time or part time. Most schools universities have also required students to return campus. Metro Manila is still the central station for government for trade and economic activities in the country. And we have seen how commercial and retail property businesses in Metro Manila were first to rebound and even surpass pre-pandemic levels despite headwinds,” Las Marias said.
On office space leasing, Las Marias said the company is repurposing some of office spaces into smaller co-working spaces to provide more accessible, furnished and ready-to-use office spaces for small and medium business enterprises.
“We’re seeing a lot of interest on our pilot co-working projects. And we are looking to add more co working spaces in our office properties in key urban centers,” he said.
On traditional space lease, FLI is negotiating with government offices as potential lessees given their mandate to expand the customer facing sections for better and faster public service to complement the increased take-up from both the offshore and outsourcing industry and the traditional office space occupiers last year.
Las Marias said prospects in the retail space is promising and that last year its mall business more than doubled.
“Revenge spending jumped sales, there was a huge surge in foot traffic as people raced to the malls to socialize to mingle or simply enjoy the freedom to be mobile again. We will continue to expand our mall business and we see opportunities for this to prime our townships and provide the much needed retail component to complement the requirements of our residential and office businesses,” he said.
