Posted on 07:59 PM, August 13, 2010 [ BusinessWorld Online ]
Net profit of Gotianun-led Filinvest Land, Inc. rose by 31% to almost a billion in the first half due to higher demand for residential units.
To propel growth higher, the property giant will launch projects worth P5 billion in the second half.
"Net income for the first half of 2010 jumped to P998 million, 31% more than the P759 million reported in the first half of 2009," Filinvest Land said in a disclosure on Friday.
Booked revenue from real estate sales jumped by 41% to P2.208 billion while rental revenues climbed by 11% to P653 million.
Total revenue climbed by 30% to P3.229 billion in the first half, of which 68% came from real estate sales and 20% from business process outsourcing office rentals, with the balance coming from interest and other income.
"The demand for Filinvest Land’s... residential housing for the socialized, affordable and middle-income markets remained robust," the company said.
Total residential sales reservations increased by 28% to P4.75 billion during the period.
Filinvest Land launched P4.1 billion worth of projects in the first semester: three new socialized housing projects and eight additional phases to existing projects.
"This is 28% more than the estimated sales value of projects launched during the same period last year," the real estate firm said.
"For the second half of 2010, Filinvest Land plans to launch 11 new projects and 10 additional phases to existing projects worth an estimated P5 billion, which will bring the total value of projects launched in 2010 to P9.1 billion, 42% more than... in 2009," Filinvest Land added.
New projects slated for launching this year include two mid-rise housing projects in Citta de Mare, the firm’s flagship project in the South Road Properties, under a joint venture agreement with the local government of Cebu City.
The firm led by property tycoon Andrew L. Gotianun, Sr. has doubled its capital expenditure this year to around P7 billion.
The Filinvest group has been in the residential business for more than 45 years and has developed over 2,000 hectares of raw land into homes for more than 110,000 families. It also has 600,000 square meters of office/retail and high-rise residential space.
Filinvest Land shares closed three centavos lower to P1.07 each on Friday. -- Neil Jerome C. Morales