FLI said it plans to sell an additional P2-billion worth of receivables from its reserved housing units as part of a package of measures it is undertaking to reduce its debts.
This is on top of the issuance of up to P1-billion worth of long-term commercial papers (LTCP) recently approved by the Securities and Exchange Commission.
"FLI’s sale of its receivables had always been part of its prudent operating strategy to sustain its profitability under any prevailing business and market environment," FLI officials said.
The additional LTCP issuance, which would bring up its outstanding debt float to P3 billion, will also be diverted to service its debts and finance its working capital requirements.
In the first half of 2001, FLI earned P320 million, a 14-percent drop from P374 million in the same period last year as lower income from other investments and higher operating expenses pulled down the gain in revenues.
FLI realized near flat growth in gross profit on sales of subdivision lots and houses, from P496.3 million to P505.3 million during the period.
Slight increases in sales were registered by having projects for middle income buyers, such as Springfieldview, Fairwayview and Crystal Aire subdivisions in Cavite; Serra Monte Mansions in Cainta; and regional projects in Cebu and Davao.
The company derives an almost equal mix of sales from middle-income and high-end projects accounting for 51 percent of total revenues, while 49 percent is contributed by sales of socialized housing units.
Early this year, the Gotianun-owned property developer launched several housing projects ranging from affordable to high-end residences, namely Auburn Place in Pamplona, Las Piñas, Woodville in Gen. Trias, Cavite; and Miramonte in San Pedro, Laguna.
Outside of residential property development, FLI will soon start its first industrial project – the 325-hectare Filinvest Technology Park in Calamba, Laguna recently proclaimed by the government as an economic zone.
FLI also maintains a 20-percent stake in Filinvest Alabang Inc., which is developing the Filinvest Corporate City.