Filinvest scores 22% profit rise

FILINVEST Development Corp. (FDC) booked a 22% net attributable income growth to P1.98 billion in the third quarter this year from P1.63 billion in the same period last year as most of its segments recovered.

“We are pleased with the recovery of most of our business units in the third quarter despite the enforcement of stricter quarantine measures in the National Capital Region and nearby provinces last August,” FDC President and Chief Executive Officer Lourdes Josephine Gotianun-Yap said in a statement on Tuesday.

“We are positive that the improving trajectory will be sustained with the reopening of the economy. The increased mobility that we are starting to see is quite encouraging,” Ms. Gotianun-Yap added.

According to a regulatory filing on Monday, the company’s topline declined by 6% to P13.89 billion in the quarter ending September from P14.84 billion a year ago. Revenues from mall and rentals as well as banking and financial services revenues declined.

FDC’s total revenues and other income inched down 4% to P16.11 billion from P16.74 billion a year ago.

For the January-September period, the Gotianun-led conglomerate’s net attributable income dipped 30% to P6.18 billion from P8.84 billion in the same period last year.

East West Banking Corp. made up for 50% of FDC’s bottom line for the three quarters with a net income contribution of P5.1 billion, 13% less than its P5.8 billion contribution in the same period a year ago, as the banking unit’s loan revenues and trading gains declined. 

EastWest Bank’s net interest income declined by 18% to P16.4 billion due to weak loan demand, faster runoffs of higher-yielding consumer loans and interest limits for credit cards.

Meanwhile, its real estate and hospitality businesses contributed a combined P3.1 billion.

Real estate businesses Filinvest Land, Inc. and Filinvest Alabang, Inc. (FAI) had a lower income contribution of P3.8 billion, coming off from P5.1-billion in the same period last year. FDC said the 27% decline was due to a high base because of FAI’s P2.4-billion profit from the joint development of a Filinvest City property. 

Its residential segment registered a 16% growth in revenues to P8.4 billion on the back of continued demand for its affordable and mid-income housing projects. Meanwhile, the company said its rental revenues, which continue to be affected by pandemic restrictions, totaled P4.5 billion.

FDC listed its own real estate investment trust (REIT), Filinvest REIT Corp. (FILREIT), in August. FILREIT will be added to the MSCI Philippines Small Cap Index by end-November after the MSCI concluded its index review last week. 

The P3.8-billion income contribution of FDC’s real estate arm was offset by the revenue decline of Filinvest Hospitality Corp. to P769 million in the nine-month period. 

“Revenue generation of the six hotels and resorts under the Filinvest group’s portfolio was limited due to the travel restrictions and social distancing guidelines,” the company said.

Meanwhile, its power unit FDC Utilities, Inc. (FDCUI) accounted for 15% of FDC’s bottom line with P1.4 billion. FDCUI booked a P1.4-billion net income as of September as its revenues were “flat” at P6.4 billion after volume declined by 7%.

FDCUI’s wholly-owned unit FDC Water Utilities, Inc. (FDCWI) secured a 25-year 80 liters per day bulk water deal with Metro Cebu Water District. FDCWI will be in charge of the desalination facilities for potable water.

“The desalination facilities will utilize seawater to be processed using the High Recovery Seawater Desalination Technology of its technical partner, Hitachi Ltd., Japan,” FDC said.

FDC closed unchanged for the second consecutive day at P7.83 apiece. — Keren Concepcion G. Valmonte