Filinvest Corp. bares 57% growth in Q1 income to P140M

Filinvest Development Corp. (FDC), the investment holding firm of the Gotianun family, reported a 57-percent growth in its net income for the first quarter this year to P140 million, mainly driven by its real estate business.

FDC president Josephine Gotianun-Yap attributed the growth to its subsidiaries’ increased market reach made possible by product innovation, wider geographic reach, expanded sales distribution and product diversification.

Among FDC’s major subsidiaries are property developer Filinvest Land Inc.(FLI), Filinvest Alabang Inc. and East West Banking Corp.

Last year, FDC posted a net income of P541 million or more than three times its profit in 2003.

Gross revenues from sales of lots, condominiums and residential units surged 44 percent to P2.9 billion, while revenues from the lease of malls and office buildings jumped to P884 million from only P342 million in 2000.

The Filinvest Group is a market leader in providing call center and business process outsourcing space through its Northgate Cyberzone project and the country’s tallest office tower, the PBCom Tower in Makati where it has a 50 percent ownership stake.

The Filinvest Group continues to maintain a conservative debt-to-equity ratio of 0.32 to 1. It has pared down its debt from a high of P20.9 billion in 1998 to P9.5 billion in 2004.

To sustain its gains, FDC intends to strengthen its foothold in the retail and office space rental sector on account of its large landbank. With over 70,000 square meters of office space, the Filinvest Group supplies 7,150 call center seats against the industry total of 42,000 as of Dec. 2004.

Expressing optimism on the steady recovery of the domestic real estate sector, the Filinvest Group is eyeing new development projects in the country’s key cities.

Later this year, FDC is set to launch a 12-hectare beach resort in Mactan, Cebu which shall house 70 lots for private homes, a beach club and spa, a condominium complex and accommodation units for short-term visitors.

Last year, FLI launched the 677-hectare Timberland Heights located only 15 minutes away from Quezon City. This premier mountain resort and residential townships is composed of the Mandala Residential Farm Estate, a development that offers hobby farmers generous lot cuts with tropical Asian-inspired homes, and Banyan Ridge, a development meant for purely residential use.

Timberland Heights will also have the Timberland Sports and Nature Club, a world-class family country club sitting atop one of the highest crest of the township.

The Filinvest Group has been engaged in the real estate development business since 1967. It is among the leading property developers in the Philippines.