Tuesday, August 19, 2008 [ philstar.com ]
Filinvest Land Inc. (FLI), the property unit of tycoon Andrew Gotianun, said its first half net profit this year went up 35 percent on robust real estate sales.
In a financial report filed with securities regulators, FLI said net earnings reached P714.33 million compared with a restated net income of P529.43 million last year.
In 2007, FLI decided to voluntarily change its revenue recognition policy on sale of subdivision lots and housing units and follow the industry’s lead in discontinuing the use of installment method.
Total revenues declined 6.2 percent to P1.67 billion due to the recognition of an extraordinary gain realized by affiliate Filinvest Alabang Inc., from the secondary sale of FLI shares in February 2007.
Revenues from FLI’s real estate and leasing segments, however, rose 9.8 percent to P 1.64 billion mainly driven by new projects or expansion of existing ones, intensive marketing activities and availability of affordable financing.
The company’s core business of socialized, affordable and middle-income housing, covering house and lot packages ranging from P 300,000 to P4 million, continue to account for the bulk of real estate revenues at 71 percent. The balance of 29 percent was accounted for by high-end projects, farm estates, industrial lots and entrepreneurial housing (Asenso Village).
Rental income from Festival Supermall, PBCom Tower and Northgate Cyberzone reached P 556 million, up 15 percent from P483.27 million due to higher lease rates on renewed leases as well as the contribution of two BPO buildings, namely Plaza D and 5132 Building at Northgate Cyberzone.
Moreover, iHub1, the latest addition in Northgate Cyberzone, started contributing to revenues in June.
As of end-June this year,FLI’s building portfolio stood at 118,000 square meters. All are fully leased out, with the exception of iHub 1 which is still 33 percent leased out.
Another BPO building, iHub 2, will start contributing to revenues in the fourth quarter this year. Two other buildings, iHub 3 and 4, with a total gross leasable area of 35,000 square meters, are under construction.
Demand for FLI’s residential projects continues to be strong. Sales take- up for the first semester reached P3.26 billion, translating to a 26-percent growth over last year’s figure.
During the period under review, FLI launched 14 new projects and phases with a combined sales value of P3.3 billion. The new projects include a middle-income development in Butuan City (Filinvest Homes — Butuan), as well as the latest addition to the company’s mid-rise building developments, Bali Oasis along Marcos Highway.
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