Filinvest Land profit up 40% to P818M in ’06

Filinvest Land Inc. (FLI), the flagship property firm of tycoon Andrew Gotianun, reported a 40-percent jump in its net profit last year to P818 million from P583 million in 2005, driven by higher real estate sales and rental income from its office and commercial center buildings.

In a financial report submitted to the Philippine Stock Exchange, FLI said gross profit rose 27 percent to P1.5 billion as its lease income from mall and office building operations surged 2,010 percent to P255 million.

Additional revenues were generated by Northgate Cyberzone, Festival Supermall, and PBCom Tower, which were acquired by FLI in September 2006. These retail and office developments will contribute fully to total revenues beginning this year.

Gross revenues reached P3.4 billion or 21 percent higher than the previous year’s P2.8 billion.

With the infusion of the commercial and office assets, FLI’s consolidated assets increased 45 percent to P40.8 billion from P28.2 billion in 2005 while stockholders’ equity expanded 62 percent to P29.2 billion.

FLI maintained a strong financial position ending the year with a cash position of P469 million and a low debt-to-equity ratio of 24 percent.

"With the very successful follow-on offering of the company in the first quarter of 2007, FLI raised P5.9 billion for the fast-track development of the targeted projects in our development pipeline," FLI president Joseph Yap said.

He said the company has set aside P16 billion year more residential and office building projects nationwide over the next three years. Of the total, P5 billion will be spent this year, P3.7 billion of which will go to residential developments and P1.3 billion for office developments.

Bullish on the prospects of the real estate sector,FLI has lined up 14 new projects this year.

Among these projects include the Sunrise Place and Westwood Mansions in Cavite – both catering to the affordable and socialized segment; and Auburn Place – Biñan, The Glens — San Pedro, Escala — Cebu and West Palms – Puerto Princesa — all targeting to the middle-income market.

FLI is also broadening its market reach with the launch of a condotel in Cebu to be called Grand Cenia. The 18-story tall bidding will have three floors for commercial and BPO offices.

FLI is also building One Oasis — a complex of nine five-story residential medium rise buildings in Pasig City.

FLI’s other projects include Kembali Coast on Samal Island, Davao — a 50-hectare Asian-Balinese beach front residential resort and residential developments; The MacArthur Villas in Tarlac and Asbery Villas and Claremont Village in Pampanga.

For its office buildings, FLI is budgeting P2 billion in the next three years for the construction of BPO buildings at Northgate Cyberzone. Five buildings are under construction with a total leasable area of 68,516 square meters, expected to be completed next year.

With the completion of these buildings, FLI will have a total gross leasable area of 166,052 square meters in its portfolio.