FDC earnings expand 36% to P2.9 B

Filinvest Development Corporation (FDC), the investment arm of the Gotianun Group, reported a 36 percent hike in attributable net income to P2.9 billion in the first quarter of 2024 from P2.2 billion in the same period last year.

In a disclosure to the Philippine Stock Exchange, the firm said consolidated net income rose by 27 percent to P3.7 billion on the back of strong contributions from its banking, power and property businesses. 

Ms. Chiqui Huang - FDC President and CEO.png
FDC President and CEO Rhoda A. Huang

“We are pleased with the strong financial results during the first quarter. We will push to maintain the momentum as we strive towards the fulfillment of our long-term goal of sustained growth in earnings,” said FDC President and CEO Rhoda A. Huang.

Total revenues and other income rose by 28 percent to P26.4 billion, faster than the increase in costs and expenses of 25 percent to P21.6 billion.

The banking and financial services accounted for 36 percent of FDC’s bottom line in the first quarter of 2024, contributing a net income of P1.2 billion to the group. This was followed by the power subsidiary that contributed P1.0 billion in net income or 29 percent of total. 

The property business, composed of the real estate and hospitality segments, posted a combined P741 million or 21 percent of total, while the balance of 14 percent came from other businesses.

EastWest Bank (EW) delivered a net income contribution to the group of P1.2 billion in the first quarter of 2024, 6 percent higher than the same period last year.

Power subsidiary FDC Utilities, Inc. (FDCUI) reported a 65 percent surge in net income to P1.0 billion in the first three months of 2024, driven by higher-than-expected energy sales volume as well as increased operational plant efficiency. 

FDC's real estate business, composed of listed subsidiary Filinvest Land, Inc. (FLI) and Filinvest Alabang, Inc. (FAI), contributed P704 million in net income to the group in the first three months of 2024, or 17 percent higher than the ₱600 million in the same period last year. 

The growth was led by the 24 percent improvement in residential sales to P3.6 billion from accelerated construction progress of its projects and the strong performance of medium-rise condominiums. 

Mall and rental revenues rose by four percent to P2.0 billion from higher mall occupancy and foot traffic. Hotel operations under Filinvest Hospitality Corporation (FHC) added P37 million to FDC net income in the first quarter of 2024. 

The recovery of domestic tourism supported the increase in occupancy and room rates across all the operating properties – namely, Crimson in Alabang, Boracay, and Mactan; Quest in Cebu, Clark, and Tagaytay; and Timberland Highlands in Rizal. 

For this year, the Filinvest group is earmarking a total combined capital expenditure budget of P25 billion, 60 percent of which will go to the development of real estate projects. 

Another 15 percent of the total will be used to pursue renewable energy projects, 15 percent for the expansion of the hospitality business, and the balance for digitalization and other businesses.