Filinvest Land posts income growth in 2009 due to strong sales, rentals

Net profits of Filinvest Land, Inc. grew by almost a tenth last year as a result of strong sales and rental income. The listed property company told the Philippine Stock Exchange on Wednesday its net income went up by 8 percent to P2.02 billion from a year earlier. Real estate sales, which made up the bulk of its P5.64-billion revenues, rose by five percent to P3.68 billion from the prior year. Meanwhile, the residential sales reservations reached P7 billion, almost a tenth more than in 2008. "Demand for Filinvest Land’s core business of residential mass housing, composed of socialized, affordable and middle-income markets, remained steady and contributed over 90 percent of total sales," the company said. Rental income, which came from Festival Supermall and Northgate Cyberzone in Alabang, and PBCom Tower in Makati City, went up by five percent to P1.19 billion from a year earlier. Its stockholders’ equity, meanwhile, grew by three percent to P39.18 billion. The company’s total assets grew by over a tenth to P58.9 billion, while liabilities stood at P19.73 billion, almost a third more than the year-ago level, the company said in a separate unaudited financial report. Filinvest’s total expenses, meanwhile, increased by almost a tenth to P1.7 billion. "Despite the downturn in the economy, and the effects of September’s Typhoon Ondoy, Filinvest Land was one of the few developers that was able to sustain growth in its sales," it said. It said buyers’ interest in its medium-rise buildings remained strong, with the first Oasis property in Pasig expanding to seven developments, including the ones in Davao, Cebu and Sta. Mesa, Manila. The company said its mid-rise projects — inner city developments with five-storey buildings — are gaining ground because of its low density development and lower association dues compared with high-rise condominiums. Filinvest said it had 77 ongoing projects at the end of last year, including seven new projects and 23 additional phases worth P6.4 billion. The company also plans to start 13 more projects this year covering 2,433 hectares, as well as 23 more phases worth P8.6 billion. These include two new housing projects in Batangas and Cavite, as well as four socialized housing developments in both provinces and in Bulacan. — Nikka A. Corsino/NPA, GMANews.TV