FDC income slides; top official hopes to recover momentum

FILINVEST Development Corp.’s (FDC) net income attributable to equity holders of the parent company amounted to P2.23 billion in the second quarter, down by almost 47% from the P4.18 billion year on year as its topline figure dropped.

The Gotianun-led firm also reported in a regulatory filing on Tuesday that its revenues for the three-month period totaled P13.34 billion, inching down by six percent from P14.25 billion. Revenues and other income also decreased by 22% to P15.28 billion from P19.57 billion.

“The market conditions remain to be challenging, but our businesses continue to persist and progress amidst the volatility,” FDC President and Chief Executive Officer Lourdes Josephine Gotianun-Yap said in a statement on Monday.

For the first semester, FDC’s net income attributable posted a 42% drop to P4.2 billion from P7.22 billion from a year earlier. Its consolidated income amounted to P5.7 billion.

Its banking unit accounted for over half or 55% of FDC’s bottom line, contributing P3.7 billion, which is 16% less than the P4.4-billion contribution in the same period last year on lower loan revenues and trading gains.

Meanwhile, its property business, which includes its real estate and hospitality segment, recorded 26% or P1.7-billion net income contribution. Its power subsidiary accounted for 15% or P971 million, while the four percent balance was from its other business units.

The company’s revenues and other income also suffered a 23% dip to P31.88 billion from P41.25 billion.

Banking arm EastWest Banking Corp.’s profit went down by 18% to P3.8 billion year on year. Its net interest income also declined by 14% to P11.5 billion due to lower loan levels and yields on loans and fixed income securities.

FDC’s real estate business comprised of Filinvest Land, Inc. (FLI) and Filinvest Alabang, Inc. contributed a P2.2-billion net income to the group in the first semester.

In a separate statement, FLI said its net income attributable to equity holders saw a 14% improvement in the second quarter to P1.09 billion from P952 billion year on year.

The company saw a 76% increase in residential revenue during the period to end with P2.57 billion, “which signals the recovery of the residential business and further confirms that demand for the company’s affordable and mid-income housing products remains resilient.”

FLI launched P3.4-billion worth of projects in the second quarter. Capital expenditures for the first half of 2021 totaled P5.78 billion, 60% of which were used for residential projects, 26% for office developments, and the rest were spent on retail, innovation or logistics parks, and land acquisition.

The listed property developer has P30 billion more residential projects in the pipeline, which the company will launch “as market conditions further improve.” It also said it is planning to expand to new areas in the country such as Bataan, Naga, Dagupan, and General Santos.

The real estate investment trust sponsored by FLI also made its debut at the Philippine Stock Exchange on Aug. 12, which raised P12.6 billion from its initial public offering. Filinvest REIT Corp.’s net income for the second quarter declined by 12% to P411.18 million year on year.

Meanwhile, Filinvest Hospitality Corp. reported a 41% drop in revenue to finish the first semester with P493 million as occupancy rates at its hotels were still below pre-pandemic levels.

“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,” FDC said.

However, Filinvest’s Crimson Alabang logged a higher occupancy rate at 73% and Quest Clark’s stood at 74%.

“We were already seeing an uptrend in operations just before the enhanced community quarantine that is currently enforced in the National Capital Region and nearby provinces was announced,” said Ms. Gotianun-Yap.

“We are hopeful that this is a headwind and that when the current restrictions are lifted, we can regain the recovery momentum as more and more Filipinos are vaccinated,” she added.

On Tuesday, shares of FDC at the stock exchange went up by 0.13% or one centavo to close at P7.80. — Keren Concepcion G. Valmonte

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