The Gotianuns are scaling back drastically on new Filinvest Land Inc. project launches this year as the coronavirus pandemic decimates residential sales.
FLI will only launch P13.4 billion wroth of projects in 2020, down 55 percent from its original target of P30 billion. COL Financial said: “This reflects FLI’s more cautious outlook on demand and the increasing importance of maintaining liquidity,” said COL Financial in a market update of the property firm.
FLI’s residential sales plunged 40 percent and reservations slumped 14 percent in the firqt quarter this year as the Gotianuns were forced to suspend construction activities with the enhanced community quarantine in mid-March after getting battered by the Taal Volcano eruption in the first few weeks of 2020. FLI also gave buyers a two-month grace period to buyers. Due to poor residential sales, FLI’s profits dropped 25 percent to P1.35 billion n the first three months this year.
In a statement, FLI chief executive officer and president Josephine Gotianun-Yap bared the challenges faced by the company: “The first quarter of 2020 has been challenging for our country with notable calamities such as earthquakes in Mindanao, the Taal Volcano eruption and the global health crisis that is COVID-19. We have revised our project lineup and have moved some launches originally scheduled for the second half of 2020 to 2021.”
Gotianun-Yap said FLI has reduced its capital spending this year from P20 billion to P16 billion.
“We will, however, go ahead with residential projects in new geographies within the country. We have also allocated a significant amount of this year’s resources for the completion of additional office buildings, the innovation park, as well as the development of our townships. All of these signify our confidence that our company and the country will be able to hurdle the challenges ahead of us,” Gotianun-Yap said.