Filinvest net income increases 12% to P6.5B

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Sunday, April 13, 2014


FILINVEST Development Corp. (FDC) reported a 12 percent year-on-year increase in its consolidated net income in 2013 to P6.5 billion from P5.8 billion in 2012.

Consolidated revenues increased by 17 percent to P34.8 billion from P29.8 billion last year.

FDC chairman Jonathan Gotianun said the overall robust performance of the FDC group in 2013 resulted from the positive results of all its major subsidiaries.

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Top line growth was driven by both its real estate operations, largely composed of subsidiaries Filinvest Land, Inc. (FLI) and Filinvest Alabang, Inc., as well as its financial and banking services subsidiary EastWest Bank (EWB).

Together, real estate and financial services contributed 89 percent of total group revenue, or 47 percent and 42 percent respectively. Sugar operations contributed eight percent, while hotel operations contributed three percent of total revenues.

“We look forward to improved performance in the group, not only because of the strength of our real estate and banking businesses, but also because we are optimistic about the prospects of our other operations,” said FDC president and CEO Josephine Gotianun-Yap.

“Construction of our 405-megawatt power plant in Mindanao is in full swing and expected to be the third major leg of the group by 2016 . The FDC strategy is to employ our business experience and strength to nurture these nascent operations to help them become full contributors to the group,” Yap said.

At the end of year, FDC’s financial condition remained healthy with stockholders’ equity at P84.7 billion. Total assets increased by 13 percent to P270.8 billion from P240.1 billion. FDC ended 2013 with a cash balance of P30.8 billion, with long-term debt of P59.1 billion.

FDC maintained a net long-term debt to equity ratio of 0.70 and net debt to equity ratio of 0.33.

Last January 2014, FDC raised P8.8 billion in long-term bonds after receiving the highest credit rating of PRS Aaa from Philratings Ratings Services Corp.

Property listed subsidiary FLI’s net income grew 14 percent in 2013 to reach P4 billion over P3.5 billion in 2012. Total revenues and other income from the group’s real estate operations increased by 9 percent in 2013 to P16.5 billion from P15.1 billion last year.

This was the result of continued growth in both revenues from real estate sales as well as mall and rental revenues. Real estate sales of the group reached P12.6 billion, or nine percent over 2012, due to higher sales of recently launched middle-income and affordable housing projects.

Rental revenues also posted nine percent growth to reach P2.3 billion due to additions of rental properties and higher occupancy rates. FDC earlier reported record breaking prices that reached 180,000 per square meter in Filinvest City, its CBD development in Alabang, Muntinlupa.

Net income at EWB increased by 13 percent in 201. Revenues in financial and banking services grew 28 percent to P14.6 billion from P11.4 billion in 2012. This was largely driven by interest income, which increased by 27 percent to P9.8 billion, the result of double-digit growth in both consumer lending and corporate loans. (PR)

Published in the Sun.Star Cebu newspaper on April 14, 2014.

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