Filinvest income declines to P151M in Quarter 1

The soft real estate market took its toll on property developer Filinvest Land Inc. which suffered an earnings slowdown in the first quarter with net income dropping 24 percent to P151.1 million.

Although the company’s gross income from sales of subdivision lots and houses during the period went up by 13 percent to P226.7 million, the combined burden of a 49 percent increase in operating expenses, decreased income from other investments and the peso depreciation weighed down on FLI’s bottom line.

However, FLI president Joseph Yap said their earnings prospects improved due to higher sales contributed by the affordable and middle-income projects such as Springfieldview, Fairway View and Crystal Aire, all located in Cavite and Serra Monte Mansions in Cainta, Rizal.

The company derives an almost equal mix of sales coming from middle-income and high-end projects accounting for 51 percent of total revenues, while 49 percent is contributed by sales of socialized housing units.

He said by capitalizing on its niche marketing strategy, FLI was able to successfully launch its signature projects amid a still-recovering economy.

"Themed communities were launched after identifying the key needs of the target market. New house models are being introduced, and innovative financing schemes are being offered to the buyers," Yap said.

FLI first vice president Fely Ramos added that as of last April, sales went up by a robust 36 percent, representing an increase in demand across the company’s different housing brands.

This quarter, FLI launched several projects that ranged from affordable to high-end residences: Auburn Place in Pamplona, Las Piñas; Woodville in Gen. Trias, Cavite; and Miramonte in San Pedro, Laguna.

In addition to residential property development, FLI will start its first industrial project this year – the 325-hectare Filinvest Technology Park in Calamba, Laguna proclaimed by the government as an economic zone.

FLI will also maintain its 20-percent stake in Filinvest Alabang Inc., which is developing the Filinvest Corporate City. The 18-hectare Northgate Cyberzone within FCC is now a fully operational information park, with the recent completion of two four-storey building at the Plaz@ block.