Filinvest reports 39% jump in net earnings

Filinvest Development Corp. reported a 39-percent jump in net earnings last year on the back of share asset sales.

In a financial report filed with securities regulators, FDC said net income stood at P2.9 billion, boosted by a one-time gain of P2.4 billion from the sale of its shares in subsidiary Filinvest Land Inc. (FLI).

Real estate operations contributed P4 billion in net revenue, down by 14 percent from the previous year.

Sales of lots, condominium and housing units, and membership club shares amounted to P4 billion, 22 percent higher than last year’s level of P3.2 billion. Higher sales came from the residential sector particularly the low cost and affordable housing segments. Also contributing to the increased sales are new projects launched by FLI in the regional areas and additional residential condominium of Filinvest Alabang.

Mall and rental revenues improved to P1.2 billion from P1.1 billion, mainly due to the escalation of rental rates and improved tenant occupancy in PBCom Tower (which is 50 percent owned by Filinvest Asia Corp.).

With the significant prepayment of high-cost long-term debts, interest expense significantly declined resulting in a five-percent drop in total operating expenses to decline to P2.4 billion.

Revenues from financial and banking services grew 52 percent from P1.3 billion to P1.9 billion, mostly coming from interest income with the increase in loans, particularly auto and credit card loans. In spite of increases in interest income, cost of financial and banking services declined by one percent as a result of the EastWest Banking Corp.’s move to improve its deposit mix in favor of the low cost deposits.

With the growth in the volume of business, operating expenses increased by 22 percent principally from higher salary and employee benefits and credit card service charges.

Meanwhile, revenues from its sugar business amounted to P118.5.

As of end-December 2007, FDC’s total consolidated assets stood at P114.7 billion while stockholders’ equity was at P58 billion. Total liabilities, on the other hand, reached P57.6 billion.

Assets expanded due to the acquisition of a 100-percent interest in Pacific Sugar Holdings Corp. which owns Davao Sugar Central Co. Inc., Cotabato Sugar Central Co. Inc., and High Yield Sugar Farms Corp.