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Filinvest Development sees drop as realty sales decline

Posted on November 15, 2011 11:05:05 PM [ BusinessWorld Online ]

HOLDING FIRM Filinvest Development Corp. saw its net income contract in the third quarter by more half from yearago levels as it reported lower revenues from real estate and sugar businesses, a filing with the local bourse showed.

The Gotianun-led firm posted a 61.28% decline in its net income for the July to September period to P744.54 million versus P1.922 billion a year ago.

The holding firm’s third quarter revenues fell by 9.56% to P5.678 billion from P6.278 billion in year-ago levels, while total expenses were up by 16.33% to P2.493 billion versus P2.143 in the previous year.

This, as subsdiary Filinvest Land, Inc.’s third quarter revenues and other income fell by 62% to P378 million on lower real estate sales and flat rental collections.

Pacific Sugar Holdings Corp.’s revenues and other income meanwhile fell by nearly a quarter to P610.37 million from P813.08 million last year.

The results brought the Filinvest Development’s nine-month net income to P3.130 billion, down 17.93% from P3.814 billion realized last year.

“The consolidated net income for 2010 included the one-time extraordinary gain mentioned above,” the holding firm explained.

“Excluding this one-time gain, [our] nine-month consolidated net income was slightly down by 5% year on year,” it said.

Total revenues for January to September declined by 8.48% to P16.256 billion versus P14.984 billion, while expenses grew by 7.44% to P6.544 billion from P6.091 billion in year-ago levels.

Net of eliminating entries, the real estate segment contributed revenues of Php7.902 billion or 49% of total consolidated revenues.

Finance and banking services contributed 42% of total revenues while sugar operations and the newly launched hotel operations contributed 7% and 2%, respectively.

“Due to the start-up nature of the hotel operations, revenues and income contributions were expected to be marginal. However, this should steadily increase as occupancy rates improve going forward,” Filinvest Development said.

The firm remains below the 10% minimum public float required of firms listed on the Philippine Stock Exchange come Nov. 30.

To date, the listed company only has a public float level of 7.3%.

The company has not revealed concrete plans for its public float level.

Earlier this year, Filinvest Development postponed its bid to raise its public float via a follow-on offering involving the sale of as much as 2.88 billion shares to an indefinite date.

Filinvest Development, incorporated in 1973, is into mall, theater, and resort hotel operations, banking and financial services, sugar farming and milling, and most recently, power generation.

Filinvest Development shares stood unchanged at P3.74 apiece yesterday when trading closed. -- FJGDLF

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