Fil-Estate Land Inc. (FELI) posted a net income of P32 million in the first nine months of its fiscal year ending September 2007, more than three times the P10.47-million profit reported in the same period last year.
In a financial report filed with the Philippine Stock Exchange, FELI said revenues totaled P357.03 million, slightly up from the previous year’s P355.63 million. Other income, however, jumped to P154.53 million or an increase of more than six-fold from P24.63 million a year ago.
Sales of real estate and golf club and resort shares amounted to P247 million, mainly coming from the sale of subdivision lots in Cathedral Heights in Quezon City, Forest Hills in Antipolo, Puerto Real de Iloilo in Iloilo, Riverina in San Pablo City, Parklane in Las Piñas and Plaridel Heights in Bulacan.
Cost of sales amounted to P171.02 million, up from P167.07 million, while operating expenses rose to P271.08 million from only P233.52 million.
At the end of its fiscal year 2006, the Fil-Estate Group had significantly reduced debt and operating costs from pre-crisis levels. Bank debts and payables to suppliers, contractors and other creditors were reduced through asset swap arrangements utilizing its real estate and golf and resort shares inventory.
As of end-June this year, FELI had total liabilities of P2.74 billion from P2.81 billion a year earlier.
While it has already succeeded in reducing debt and costs, the group continues to face the challenge of completing projects and generating sales. In view of the improved economic condition, the quality of the projects and landbank, in-house marketing network and the headway that management had made in forging alliances with partners and investors, management is confident this objective will likewise be achieved.
FELI recently doubled its authorized capital stock to P10 billion to facilitate the entry of new investors to help finance the construction of its large-scale projects.
The company is in talks with a number of investment houses and property firms which have signified interest to invest in FELI’s projects.
FELI has set aside P2.5 billion this year for the development of several projects, including Manila Southwoods’s Phase 5; the Twin Lakes, a leisure and recreational complex on a 900-hectare property in Laurel, Batangas; the Nasugbu Harbor Town in Batangas; Boracay villas, Camp John Hay cabins, and the Sta. Barbara Residential and Golf Estates.
Most of these projects are in various stages of development while the others have yet to start construction.
Other projects of FELI include Cathedral Heights in Quezon City, Eight Sto. Domingo Place (a residential condominium building in Quezon City), Parco Bello (a residential development with golf course in Muntinlupa), Renaissance 5000 Center and New Port Hills.