FLI posts 11.7% hike in Q1 income to P154M

Filinvest Land Inc. (FLI), the property concern of the Gotianun family, posted a net income of P154.08 million in the first quarter of the year, up 11.7 percent from the previous year’s level of P137.95 million.

In a financial report filed with the Securities and Exchange Commission, FLI said it reported an interest income of P63.11 million during the first three months of the year as against an interest expense of P9.14 million in the same period a year ago. This was attributed to higher interest income on contracts receivables and rental income.

Real estate sales however, fell 17.01 percent to P560.25 million from P675.15 million. Gross profit likewise declined 15.53 percent to P285.49 million from P338 million.

Cost of real estate sales amounted to P228.4 million, 20.1 percent higher than the year earlier’s P286.05 million while operating expenses went up to P163.76 million from P151.46 million.

Sales reservations reached P1.03 billion or an increase of 15 percent from P900.3 million a year earlier.

FLI’s projects catering to the middle-income segment include Spring Country, Serra Monte Villas, The Tropics, Parkspring, Auburn Place, Corona del Mar, Orange Grove, Aldea del Sol and Fuente de Villa de Abrille.

One new project that performed well during the period under review is the Mandala Farm Estate of Timberlands Heights in San Mateo, Rizal.

Several reasons cited for the company’s good performance are attractive pricing, continuous marketing activities, promos and incentives being offered to both buyers and sellers, availability of financing packages, and the positive market reception to various house models.

However, because of prior conditions to be met before a sales reservation qualifies for booking such as receipt of substantial amount of downpayment and documentary requirements, booked sales for the first quarter amounted to only P560.2 million, lower by 17 percent.

As of end-March 2006, FLI’s total consolidated assets stood at P29 billion while stockholders equity amounted to P18.3 billion. Long-term debt, on the other hand, amounted to P5.57 billion.

FLI is eyeing a 12 to 15 percent increase in sales this year, mainly coming from its middle-income housing projects. Net earnings are likewise seen to grow by 10 percent this year.

Bullish on the property sector, FLI has lined up 12 new projects, mostly located in Metro Manila. Around P1.4 billion has been earmarked for capital expenditures this year, mainly coming from internally generated funds.

Of the 12 projects to be launched this year, three are for affordable housing projects valued at between P1 million and P1.5 million each unit. Two projects will rise in Sto. Tomas, Batangas while one will be put up in Calamba, Laguna.

FLI also plans to launch two middle-income housing and two high-end housing projects, all within Metro Manila. The housing units catering to the high-end-market are priced at P2.5 million to P3 million each.

Three other middle-income housing projects will be launched in Cebu and Davao to extend the company’s presence outside Metro Manila.

FLI is also constructing two Asenso Village projects, one in Calamba, Laguna and the other in Tanza, Cavite. Development cost for both projects is estimated at between P100 million and P120 million with a total of 951 lots to be sold.

Asenso Village is designed as a business park devoted to the development of start-up and expanding SMEs.