Fil-Estate Land income nearly triples to P58M

Property developers Fil-Estate Land Inc. (FELI) posted a net income of P58.31 million in its fiscal year ending Sept. 2007, nearly three times the P19.9-million profit made in the previous period.

Based on financial statements submitted to the Philippine Stock Exchange, FELI registered revenues of P670.69 million, 26.8 percent higher than the year ago’s P528.8 million. 

Revenues were boosted by gains from the sale of assets amounting to P113.37 million.     

Cost and expenses, meanwhile, went up 6.5 percent to P608.04 million from P570.68 million.       

As of end-September 2007, FELI’s assets stood at P14.5 billion as against liabilities of only P4.95 billion.             

FELI said it expects to sustain its proftability this year, banking on the continued growth of the country’s economy.

“Against this improving economic horizon, the real estate industry is experiencing a new cycle of growth and expansion in light of renewed demand from both local and foreign markets.  Management believes that the group is poised to take advantage of the growth scenario given its substantial inventory of developable land and pipeline projects,” the company said.            

FELI earlier signed a $25-million convertible bond facility with LIM Asia Arbitrage Fund, LIM Advisors Ltd. and Hongkong and Shanghai Banking Corp. Trust Department to fund its various real estate development projects.

The bonds, maturing in 2012, represent quasi-debt instruments which can be converted into the company’s shares of stock within the specified conversion period.

The bonds are convertible in new shares of FELI at a conversion rate of P1.50 per share subject to adjustments as prescribed in the facility agreement. 

A greenshoe option of a maximum of $12.5 million allows FELI to issue additional notes under the same terms and conditions within the year provided that the total notes issued do not exceed $25 million.  

FELI has raised its capitalization to P10 billion to facilitate the entry of new investors which will help finance the completion of its large-scale projects.