Thursday, April 17, 2008 [ philstar.com ]
Fil-Estate Land Inc. (FELI) posted a net income of P8.51 million in the first quarter of its fiscal year ending September 2008, nearly doubled the P4.4-million profit reported in 2006, on higher sales of real estate and golf club and resort shares.
In a financial report filed with the Philippine Stock Exchange, FELI said revenues during the October-December period rose 21.16 percent to P75.3 million, mainly coming from the sale of residential subdivision lots in Forest Hills in Antipolo, Riverina in San Pablo City, Plaridel Heights in Bulacan and Pines Royal in Baguio.
Gross profit, however, fell 33.6 percent to P35.44 million from P53.38 million due to higher operating expenses.
Cost of sales went up 21.3 percent to P39.96 million while operating expenses increased to P98.04 million.
The company’s operating loss also more than doubled to P61.08 million from P23.09 million.
As of end-2007, FELI had total assets of P14.15 billion as against liabilities of P4.59 billion.
The company said is confident it could withstand the challenges of a difficult business environment given the continued strong performance of the real estate sector which is experiencing a new cycle of growth and expansion.
“The group is poised to take advantage of this growth scenario given its substantial inventory of developable land and “pipeline” of projects,” FELI said.
Having successfully reduced debt and operating costs, the company said it is now focused on accelerating completion of its projects, generating sales and development of new projects.
“In view of the quality of the company’s projects and landbank, the extensive in-house marketing network and the alliances that have been forged with partners, investors and bankers, management is confident that the projects will be completed and the sales objectives will be achieved,” FELI said.
FELI earlier signed a $25-million convertible facility with LIM Asia Arbitrage Fund, LIM Advisors Ltd. and Hong Kong Shanghai Banking Corp. Trust Department to fund its various real estate development projects.
The bonds, maturing in 2012, represent quasi-debt instruments which can be converted into the company’s shares of stock.
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