MANILA, Philippines — Filinvest Development Corp. (FDC) reported a 45 percent jump in its first half earnings to P7.2 billion, driven by the robust growth of its property business.
The real estate business accounted for 44 percent of FDC’s total revenues, while banking made up 38 percent, power 11 percent and sugar six percent.
Filinvest Land Inc. grew its net income by nine percent to P2.9 billion on the back of a six percent increase in total revenues. The higher revenue was due to the continued strong demand for its retail and office space.
Rental revenues grew 28 percent as its recurring income portfolio reached 595,000 square meters of gross leasable area (GLA).
FDC is optimistic about its prospects as it makes a stronger bet on leisure and gaming including putting up a casino in its 201-hectare Filinvest Mimosa+ Leisure Estate, the former Clark Mimosa Estate.
Power subsidiary FDC Utilities Inc. also made a solid contribution after its 405 megawatt clean coal power plant in Misamis Oriental saw higher demand from customers.
Meanwhile, EastWest posted a net income of P2.2 billion, down 11 percent due to the lower-than-expected results of subsidiary EastWest Rural Bank (EWRB). Excluding its EWRB business, EastWest’s net income increased 12 percent year on year.
The group, through subsidiary Mimosa Cityscapes Inc., has a provisional license granted by the Philippine Gaming and Amusement Corp. (Pagcor) for a casino integrated resort in Filinvest Mimosa+.
The company is pouring in more than $200 million into the project, which includes a casino, lifestyle mall, five-star hotel and events venue.
FLI currently operates 23 office buildings, totaling 356,000 square meters of GLA and its retail GLA stands at 239,000 sqm.
There are 10 other buildings in the pipeline, for a total of 296,000 sqm of GLA which includes the Cebu Cyberzone Tower Two in Lahug, Cebu City.
FLI also has retail developments in the pipeline that will complement the firm’s residential and office projects, including the landmark Il Corso mall in the Cebu South Road Properties, which is expected to be completed by yearend.
The company is on track to meet its target of one million square meters of GLA by 2019 and has plans of reaching 1.5 million square meters by 2022, said FDC president and CEO Josephine Gotianun Yap.
She said the company’s investments in power and infrastructure could yield returns that balance out more cyclical business segments.
Source: The Philippine Star