FDC posts 12% income growth

MANILA, Philippines - Filinvest Development Corp. (FDC) reported a 12-percent year-on-year uptick in consolidated net income in 2013 to P6.5 billion from P5.8 billion in 2012.

Consolidated revenues improved 17 percent to P34.8 billion from P29.8 billion in the previous year.

FDC chairman Jonathan Gotianun said the overall robust performance of the group resulted from the positive results of all its major subsidiaries.

“Top line growth was driven by both its real estate operations, largely composed of subsidiaries Filinvest Land Inc. (FLI) and Filinvest Alabang Inc. (FAI), as well as its financial and banking services subsidiary East West Banking Corp.,” FDC said.

“We look forward to improved performance in the group not only because of the strength of our real estate and banking businesses but also because we are optimistic about the prospects of our other operations,” said FDC president and CEO Josephine Gotianun-Yap.

The real estate and financial services accounted for 89 percent of the group’s total revenues, or 47 percent and 42 percent, respectively.

Sugar operations contributed eight percent while hotel operations accounted for three percent of total revenues, FDC said.

Specifically, net income of FLI rose 14 percent to P4 billion last year from P3.5 billion in 2012. Total revenues and other income from the real estate operations increased nine percent to P16.5 billion from P15.1 billion year-on-year.

“This was the result of continued growth in both revenues from real estate sales, mall and rental revenues,” FDC said.

Real estate sales hit P12.6 billion, up nine percent year-on-year on the back of higher sales of recently launched middle-income and affordable housing projects.

FAI, the developer of the 244-hectare Filinvest City in Alabang, Muntinlupa, reported record breaking prices that reached P180,000 per square meter in Filinvest City.

Profits of EastWest climbed 13 percent to P2.1 billion as revenues in financial and banking services jumped 28 percent to P14.6 billion from P11.4 billion in 2012.

Gotianun noted the growth in revenues and net income was noteworthy given that EastWest is in the midst of a major expansion program, which is expected to temporarily put pressure on its operating expenses.

As of April, EastWest had 374 branches, which is expected to grow to 400 by the end of the year. In 2013, the lender opened a total of 55 new branches.

For its part, the sugar business through Pacific Sugar Holdings Corp. recorded a 12-percent growth in sales to P2.8 billion from P2.5 billion in 2012.

“This was partly due to increased capacity due to investments in improvements in efficiency,” FDC said.

Hotel revenues and other income surged 40 percent to P1 billion last year.

“This was the result of both an increase in occupancy rate and an increase in room rate of Crimson Mactan as well as the addition of Crimson Alabang, which was formally launched in March 2013,” FDC said.

The hotel group recently broke ground in Boracay for its latest addition to the luxury Crimson brand.

FDC expects further growth this year given the strength of the core and new businesses.