Filinvest Land posts P508-M net income in 2003

Property developer Filinvest Land Inc. (FLI) reported a slight increase in its net income last year to P508 million from P504 million a year earlier, the company told the Philippine Stock Exchange.

Real estate sales, however, went down by 10 percent to P1.47 billion from P1.65 billion the previous year.

Gross profit realized from new sales, net of deferred portion as well as that from previous years’ real estate sales on installment, decreased by 10 percent to P964 million from P1.07 billion in 2002. The decline was due to the reduced level of mortgage receivables.

But operating expenses went down to P441.7 million from P477.22 million because of controlled selling expenses related to product launching and special events and advertisements, and the continuous cost-cutting measures being adopted by management.

Total sales reservations received in 2003 amounted to P2.04 billion, up by 25 percent. The increase was driven by higher sales in the affordable projects of Futura Classic Division like Springfieldview, Punta Altezza, Medallion Homes and Melody Heights and from middle-income and high-end projects of the Corte Bella Division such as Serra Monte Mansions and Highland Pointe.

However, sales booked in 2003 amounted to P1.47 billion, 11 percent lower than the previous year. For a sale to qualify for booking, certain criteria have to be satisfied, such as receipt of full downpayment and buyers’ documentary requirements.

Given the encouraging signs of the property sector’s recovery, FLI is positive about the industry’s growth for 2004. Among the company’s projects in the pipeline include an affordable project called Blue Palm Estate, a middle-income house and lot project called The Manors, and a leisure community called Laguna de Taal. – Zinnia dela Peña