Business

Property, power pump up FDC’s earnings to P13.4B

Property, power pump up FDC’s earnings to P13.4B

The listed holding firm of the Gotinaun family had a banner year in 2018 as profit surged 31 percent to P13.4 billion, fueled by higher earnings from its real estate and power units.

The listed holding firm of the Gotinaun family had a banner year in 2018 as profit surged 31 percent to P13.4 billion, fueled by higher earnings from its real estate and power units.

Filinvest Development Corp.’s property business contributed 43% to total revenues followed by banking 41%, power generation (13%) and sugar (3%).

Net income from the real estaste business reached P8.8 billion, driven mainly by its recurring income portfolio. Rental revenues from Filinvest Land’s (FLI) office and retail portfolio grew 27%.

FLI now operates 31 office and retail developments with a total of 712,000 square meters of GLA. It has a pipeline of 21 recurring income developments, with approximately half a million sqm of GLA currently under construction.

The hospitality business also saw a 23% expansion in revenues due to improved occupancy rates across all hotel properties as well as increased revenues from Mimosa Golf Clark.

Together with Filinvest Alabang’s commercial land leases, the group’s recurring income accounted for 38% of groupwide earnings.

Banking arm EastWest Bank also delivered solid results, ending the year with a net income of P4.5 billion.

The power segment realized a net income of P2.1 billion last year as energy sales from the FDC Misamis power plant rose 24%.

FDC Utilities, Inc. operates the largest operating baseload power plant in Mindanao with capacity of 405 MW. In 2018, FDCUI partnered with Engie, one of the world’s largest power generation and distribution firms,

“The Filinvest group’s entry into airports, hospitality and logistic parks marks the start of a new phase for FDC, as we kick off our involvement in tourism and infrastructure,” said Josephine Gotianun-Yap, president ande CEO of FDC.

FDC owns 42.5 percent of the consortium that bagged a 25-year contract to operate and maintain the Clark International Airport. It is also part of a “superconsortium” of seven conglomerates that submitted an unsolicited bid to transform the Ninoy Aquino International Airport (NAIA) into a world-class gateway.

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