FLI posts P504-M income in 2002

Filinvest Land Inc., (FLI) a leading real estate development firm owned by the Gotianun group, reported a five percent decline in its net income last year to P504 million from P531.23 million in 2001, largely due to higher provisions for income tax.

In a financial report filed with the Securities and Exchange Commission, FLI said its provision for income tax grew by 47 percent to P171 million from only P90 million the previous year.

FLI first vice-president Fely T. Ramos attributed the substantial increase in the deferred provision for income tax to the reversal of accumulated deferred tax on foreign exchange transactions due to the full redemption of $100 million convertible bonds in February this year.

Realized gross profit, on the other hand, increased by four percent from P1.03 billion to P1.07 billion in 2002 because of improved margins in some middle-income and high-end projects.

Despite the continued slowdown of the property industry, FLI’s financial health remains strong with total assets of P23.5 billion and stockholders’ equity of P17.7 billion.

FLI said the full payment of the convertible bonds also resulted in a debt-to-equity ratio of 0.19:1 as of end-December last year.

Ramos expressed optimism that the company’s financial performance will improve in the next three quarters, noting that sales for the first quarter this year have dramatically increased by 45 percent.

Given the rising optimism with these developments, FLI is preparing the groundwork for new projects such as The Classiques, Prominence II and the Village Front at Brentville International, the company’s high-end flagship development south of Manila.

Other projects in the pipeline include San Rafael Estates in Bulacan, Woodvale in Rizal, Montebello in Laguna, and Mandala Farm in Timberland Heights, Rizal.

Last year, the company completed the development of its Technology Park in Calamba as a Special Economic Zone with at least one ready-built factory. It has signed an agreement with its first locator, Philippine Dong Yun Plate Making Corp. (PDY) for the purchase of a 1.3 hectare property within the area.

A mainland China-based operating company, PDY is engaged in high-technology laser engraving. It is expected to begin operations by June this year.