Filinvest Development Q1 net income climbs 8% on real estate gains

FILINVEST Development Corp. (FDC) posted an 8% increase in first-quarter attributable net income to P3.9 billion from a year earlier, driven mainly by stronger performance in its real estate business.

Consolidated net income rose 7% to P4.8 billion in January to March, the company said in a disclosure on Thursday. Revenue and other income increased 5% to P30.8 billion.

Revenue and other income from the banking segment rose 12% to P15.6 billion, while real estate grew 16% to P7.9 billion. Hospitality was broadly flat at P1.2 billion, while the power business declined 28% to P3.6 billion.

“Business results were mixed: real estate and hospitality showed resilience against macroeconomic pressure while for others, profits were flat or experienced decreases versus a year ago,” FDC President and Chief Executive Officer Rhoda A. Huang said.

She said the group is working to sustain growth this year despite inflation and weaker economic expansion through tighter execution of its strategies.

The property segment remained the biggest contributor, accounting for P1.6 billion or 36% of total net income, followed by banking at P1.4 billion or 32%, power at P957 million or 21% and sugar at P481 million or 11%.

Banking unit East West Banking Corp. posted stronger results on higher loan volumes and lower funding costs, with net interest income rising 20% to P11.1 billion.

Real estate revenue growth was driven by stronger residential and commercial lot sales. Residential sales rose 28% on higher demand for ready-for-occupancy units and improved project completion rates, while mall and rental income remained steady on slightly higher occupancy and foot traffic.

The property group includes Filinvest Land, Inc., Filinvest Alabang, Inc. and Filinvest REIT Corp.

Filinvest Hospitality Corp. posted flat revenue, as higher room rates and increased food and beverage sales offset weaker performance in other segments.

The power business, led by FDC Utilities, Inc., reported lower earnings due to reduced spot market sales and lower coal cost pass-through rates, partly offset by lower operating costs.

FDC shares closed unchanged at P4.62 each on the local bourse. — Alexandria Grace C. Magno