Fil-Estate Land income jumps 54% to P23.8M

Property developer Fil-Estate Land Inc. reported a 54.5 percent jump in net profit for the first half of its fiscal year ending September 2008, driven by a significant increase in other income.

Based on financial statements submitted to the Philippine Stock Exchange, Fil-Estate said it posted net earnings of P23.8 million compared with only P15.4 million the same period a year earlier.

Revenues, however, dropped 33.12 percent to P130.35 million from P194.89 million due to lower sales of real estate and golf club and resort shares.  Of the P75 million came from the sale of residential subdivision lots in Southwoods in Carmona in Cavite, Forest Hills in Antipolo, Riverina in San Pablo City, Monte Cielo De Naga in Camarines Sur, Buenavista Hills and Windsor Heights in Tagaytay City.

Service income from various golf course maintenance contracts amounted to P52 million.

Gross profit, however, fell 51.36 percent to P58.11 million as expenses rose 13.14 percent to P169.6 million from P149.94 million.

Thus, from only P30.16 million last year, the company’s loss from operations nearly quadrupled to P112.84 million. Fil-Estate reported a 30 percent decrease in equity in net loss of subsidiaries, associates and joint ventures. 

Fil-Estate said it is confident it could withstand the challenges of a difficult business environment given the continued strong performance of the real estate estate sector which is experiencing a new cycle of growth and expansion.

“The group is poised to take advantage of this growth scenario given its substantial inventory of developable land and “pipeline” of projects,” the company said.

Having successfully reduced debt and operating costs, Fil-Estate is now focused on accelerating completion of its projects, generating sales and development of new projects.

It earlier signed a $25-million convertible facility with LIM Asia Arbitrage Fund, Lim Advisors Ltd and Hongkong and Shanghai Banking Corp. Trust Department to fund its various real estate development projects.

The bonds, maturing in 2012, represent quasi-debt instruments  which can be converted into the company’s shares of stock.