Property developers turn in profitable Q1 results

Property developers mostly performed well in the first quarter this year with higher income results, as more affordable projects and the added flexibility in property financing attracted more homebuyers.

Filinvest Development Corp. (FDC), the investment holding firm of the Gotianun family, reported a 20.9-percent growth in its first quarter net income this year to P89 million, from only P73.61 million the previous period, as the consolidated sale of lots, condominium and residential units rose three percent to P532.9 million.

Filinvest Alabang Inc., its commercial property and condominium developer, reported a 118-percent hike in the sale of its commercial lots and condominium projects. However, because of fewer club shares sold in 2004, sale of club shares decreased from P84.7 million to P28.6 million.

FDC’s flagship property unit Filinvest Land Inc., meanwhile, posted a net income of P104 million in the first three months of the year, up slightly from the previous year’s P105 million.

Sales reservations amounted to P988 million or an increase of 88 percent from only P524 million a year ago with the Pabahay (socialized), Corte Bella (middle-income) and Regional Groups contributing to higher sales.

Gross profit also went up by 12 percent, coming mostly from prior real estate sales on installment.

Meanwhile, upscale property developer Megaworld Corp., controlled by businessman Andrew Tan, reported an 11.5-percent hike in net profit to P242.49 million on higher sales. Revenues increased to P450.29 million in the first quarter from P441.1 million.

Rental operations, interest and other sources of income remained a major revenue contributor, accounting for P215.04 million or 48 percent of consolidated revenues. The group’s commercial and office space units in Eastwood City enjoyed a high occupancy rate of almost 100 percent, thus contributing significantly to the growth in leasing portfolio.

With its strong financial position, the group will continue investing in and pursuing expansion activities as it focuses on identifying new markets, maintaining established markets and tapping business opportunities.