Posted on 07:39 PM, November 12, 2010 [ BusinessWorld Online ]
EARNINGS OF Gotianun-led Filinvest Land, Inc. rose by more than half to almost P2 billion in the nine months that ended September due to higher demand for residential units.
To fuel further growth, the property developer will launch five projects late this year, the company told the local bourse on Friday.
Profit for the nine-month period increased by 66% to P1.991 billion as booked revenues from real estate sales jumped by 61% to P3.66 billion. Rental revenues grew by 16% to P1.03 billion.
"Total revenues increased by 45% from the yearago level to P5.25 billion ... real estate sales accounted for 70% of total revenues while recurring rental income generated by the company’s offices and mall leasing operations accounted for 20% of total revenues," Filinvest Land said.
The balance came from interest and other income.
"The demand for Filinvest Land’s core business of residential housing for the socialized, affordable and middle-income markets, remained robust," the company said.
Total residential sales reservations from January to September rose by 32% to P7 billion, already equal to sales reservations for the entire 2009.
Filinvest Land launched P7.6 billion worth of projects in the nine-month period -- three new socialized housing projects and 15 additional phases of existing projects. "This is 43% more than the estimated sales value of projects launched during the same period last year," the real estate firm said.
"For the last quarter of 2010, Filinvest Land plans to launch three new projects and two additional phases of existing projects worth an estimated P2.6 billion," it added.
New launches will bring the total value of projects launched in 2010 to P10.2 billion, 58% up from the previous year. Slated for launching are two mid-rise housing projects in Citta de Mare 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. still has around 10 hectares of land in Metro Manila. The Filinvest group has been in the residential business for more than 45 years and has developed over 2,000 hectares of raw land for more than 110,000 families. It also has 600,000 square meters of office and retail and high-rise residential space.
Filinvest Land shares closed P0.03 lower to P1.28 each on Friday. -- Neil Jerome C. Morales
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