Fil-Estate income drops to P4.4M in Oct-Dec

Fil-Estate Land Inc. (FELI) reported a net income of P4.4 million in the first quarter of its current fiscal year, lower than the previous level’s P4.84 million, mainly due to higher expenses.

In a financial report filed with the Philippine Stock Exchange, FELI said revenues amounted to P62.18 million in October to December 2006, down 26.17 percent. Of this amount, P31 million came from the sale of residential subdivision lots in Forest Hills in Antipolo, Puerto Real de Iloilo in Iloilo, Riverina in San Pablo City and Plaridel Heights in Bulacan.

Operating expenses rose to P74.66 million from only P39.75 million. From an operating income of P2.18 million, the company incurred a P23.09-million loss from operations.

While the company has already succeeded in trimming debt, it continues to face the challenge of completing projects and generating sales. "In view of the improved economic condition, the quality of the projects and landbank, in-house marketing network and the headway that management had made in forging alliances with partners and investors, management is confident that this objective will likewise be achieved," FELI said.

FELI has set aside P2.5 billion for its capital expenditures this year. It has lined up six to seven projects which include the development of Manila Southwoods’s phase 5; the Twin Lakes, a leisure and recreational complex to sit on a 900-hectare property in Laurel, Batangas; the Nasugbu Harbor Town in Batangas; Boracay Villas, Camp John Hay cabins, and the Sta. Barbara Residential and Golf Estates.

Of the programmed capital budget, P500 million will be channeled to Nasugbu Harbor Town. Most of these projects are in various stages of development while the others have yet to start construction.

Other projects of the company include Cathedral Heights in Quezon City, Eight Sto. Domingo Place (a residential condominium building in Quezon City), Parco Bello (a residential development with golf course in Muntinlupa), Renaissance 5,000 Center and New Port Hills.

FELI expects to generate cash flow from these projects within the year or next year.

The company recently raised its authorized capital stock to P5 billion from only P2.8 billion.

It earlier inked a $12-million loan agreement with Hong Kong-based LIM Asia Alternative Real Estate Fund to accelerate the development of various tourism projects.

Negotiations are ongoing for an additional $5-million convertible bond or equity-linked issue.

FELI has a total landbank of 3,050 hectares, which is sufficient for future development for 10 years. This landbank is seen to generate P120 billion in revenues for the company over the next 10 years. Its properties are scattereall throughout Metro Manila and the Calabarzon.

Of the total landbank, 2,000 hectares are for joint venture developments and the balance of 1,050 valued at P2.5 billion is solely owned by the company.

FELI continues to streamline operations, reduce costs and develop recurring revenues to allow it to take advantage of the promising opportunities in the real estate sector.