GOTIANUN-LED Filinvest Development Corp. (FDC) said its net income grew by almost half during the three quarters of the year ending September to P10.5 billion, from last year’s P7.2 billion, driven mostly by its core property and banking businesses.
Revenues grew 12 percent to P54.2 billion, and 43 percent of revenue came from the property business—including real-estate business and hotel—while banking and financial services accounted for 40 percent. The balance was contributed by power at 13 percent and sugar at 4 percent.
“Our investments in power, property and in the bank infrastructure are now being reflected in the healthy increase of FDC’s net income. While we are always managing risk in our subsidiaries, adding investments in power and infrastructure further allows us a more balanced portfolio with the defensive industries recompensing the business segments that are more exposed to the ups and downs of the economic cycle. We look forward to welcoming guests to our new Crimson resort in Boracay on November 15,” FDC President and CEO L. Josephine Gotianun-Yap said.
Property subsidiaries led the conglomerate’s growth, as revenues of Filinvest Alabang Inc. more than doubled mainly on account of commercial lot sales, while the top line grew 25 percent in the hospitality segment, as occupancy rates increased across all hotels. Total revenues of listed subsidiary Filinvest Land Inc. rose 10 percent, driven by growth in rental revenues.
Power subsidiary FDC Utilities Inc. continued to be a significant contributor to the group, as sales from its Misamis Oriental power plant and its retail electricity operations grew 25 percent in the first nine months of the year. The unit contributed P6.3 billion in revenues.
Property values continue to increase in Filinvest City, the 244-hectare central business district in Muntinlupa, due to the accelerated buildup in the estate where gross floor area has increased by 45 percent since the end of 2014.
Higher hospitality revenues were the result of improved occupancy rates across all hotel properties, as well as increased revenues from Mimosa Golf Clark.
There are four properties with 1,591 rooms currently operating under FDC subsidiary Filinvest Hospitality Corp. under both the Crimson and Quest brands.
With Boracay open again to tourists, the group now has 1,700 additional rooms in the planning and construction stages across eight new hotels, including two additional Quest properties under management in Tagaytay and San Mateo.