FDC net income grows 18% to R2.8 B

In first quarter

Filinvest Development Corporation (FDC) reported an 18 percent hike in net income to R2.8 billion in the first quarter of 2018, sustaining its growth trajectory.

In a disclosure to the Philippine Stock Exchange, the firm said a majority of revenues, or 46 percent, were contributed by the property business, composed of the real estate and hotel groups.

The increased share of property revenues was mainly due to the 21 percent growth of hotel segment revenues. The balance of revenues was contributed by banking (39 percent), power (11 percent) and sugar (4 percent).

Improved occupancy rates across all its hotel properties as well as increased revenues from Mimosa Golf Clark contributed to higher hotel revenues.

Real estate subsidiary Filinvest Land, Inc. (FLI)’s first quarter net income rose 7 percent to R1.5 billion. This was achieved on the back of a 7 percent increase in revenues to R6.3 billion, largely due to the major expansion of its rental property portfolio and the continued strong demand for its retail and office spaces.

Banking subsidiary EastWest Bank (EW) reported R0.9 billion in net income in Q1 2018, a reduction from R1.2 billion reported in the same period last year.

“While we expect 2018 to be a challenging year, mainly due to rising interest rates and higher inflation that could directly impact our customers, we are nonetheless bullish about future growth. Hence we are considering a stock rights offering in the second half of 2018 to fund these growth plans,” said FDC Chairman Jonathan T. Gotianun.

The power group, managed by subsidiary FDC Utilities, Inc. (FDCUI) also saw growth in its bottom line as its 405-MW clean coal power plant in Misamis Oriental saw higher demand from customers in the first quarter of 2018 over the same period last year.