FaR Properties on expansion drive

Real estate development and Asset Management company, FaR Properties continues with its expansion plans despite the tough economic conditions brought by Covid- 19. In its year ended June 2021, the group recorded 11 percent increase in profit before tax to P96 million compared to P86 million recorded last year. During the year, the group reported that its rent yield remained at a stable level of 10 percent with vacancies across the portfolio remaining below five percent. FaR Properties Director, Vidya Sanooj said the group will complete two of its properties before end of the year. “Two commercial properties are close to completion on time and within budget. Tenants for these properties have already been secured. These properties are expected to add to the group’s revenue for the 2022 year end.” The group revenue increased by three percent to P138 million. She said two additional properties have commenced development in the current year and will provide additional revenue in the current year. “Diversification of the portfolio remains a key consideration of the board to ensure a better and stable yield.” FaR Properties is a mixed property portfolio which comprises 53 Percent Industrial, 37 percent commercial and 10 percent residential. The company indicated that its portfolio which currently stands at P1.35 billion is backed by long term lease. The group also highlighted that there is still land bank which will be developed to increase the portfolio. However, FaR properties highlighted that the Management is closely monitoring the evolution of COVID- 19 pandemic, including how it may affect the Group, the economy and general population. “The Company has taken into consideration the following mitigating factors in its assessment for going concern basis of accounting, among other things, new projects in the pipeline to fund for growth and stability, future oriented strategies for new Investments and evolution of new revenue models for Property Management sector as a whole.” Sanooj explained that management is not aware of any significant impact on the Group’s operations to date but they currently have an appropriate response plan in place and will continue to monitor and assess the ongoing development and will respond accordingly. She said the management has prepared further cash flow forecasts taking into cognisance the recent developments and performed sensitivity analysis of the key assumptions to assess whether the Company would be able operate as a going concern for a period of at least 12 months from the date of financial statements but concluded that the going concern basis of accounting used for preparation of the accompanying financial statements is appropriate with no material uncertainty. “The Directors are of the view that the Group remains a going concern and that there are no material uncertainties that would impact the Financial Statements as at the reporting date.”