The attributable net profits of GOTIANUN-LED Filinvest Development Corp. (FDC) decreased by 29% to P8.5 billion by 2020 as “the extreme effects of the 2019 pandemic (OCVID) did not spare it.”
“The COVID-19 pandemic, a milestone year of 2019, gave an unpredictable break to our 2020 plans,” said Josephine Gotianun-Yap, FDC President and Chief Executive Officer, Monday in a tweet.
But its mixed portfolio helped the business to conclude the year with good financial results.
Consolidated net revenues amounted to EUR 11.5 bn and decreased from EUR 15.9 bn in 2019 by 28 percent.
The revenue contribution from EastWest Banking Corp. was P6.4 billion, total disposals or 46% of the bottom line of the FDC. In terms of trade profits and better margins from the low interest rate setting, the share is four percent above the P6.2 trillion in 2019.
Net interest income in EastWest increased to P26.5 billion by 23 percent with a net interest margin of 8.1 percent for the bank industry. Non-interest profits dropped by 5% to P6.9 billion as consumer support was caused by lower charges, adjusted payment systems and.
Furthermore, the bank raised loss provisions to P9.8 billion from the previous year’s P4 billion.
In the meantime, the group accounted for 5.3 billion, or 38% of net profits in the real estate and hospitality sectors.
FLI and Filinvest Alabang, Inc. (FAI) also reduced their cumulative revenue investment by up 29 percent, compared to P8,4 billion in the previous year, to P6 billion in 2020.
“Less sales, completion delays and the time of grace for homebuyers were impacted by the residential sector in the strict lock-down period which delayed property acknowledgement,” said FDC.
Lots, condominiums and rental units sold amounted to P10,5 billion, a 51% decline from the previous year’s revenue of P21,5 million.
“Besides the pandemic, the Filinvest buildings have been less hit by the limitations than other areas of the centers closed for the duration of tight population quarantine,” the firm said.
Rental sales dropped from P7,46 billion by 11% to P6,7 billion. The drop in shopping mall sales compensated for the increase in office rental. During the Neighborhood quarantine times, Filinvest stated that it waived rental fees for non-operational establishments.
“With an initial issuance of the FLI (Securities and Exchange Commission) authorised bond registration scheme for the series of bond issue up to a total amount of P30 billion, FLI was able to lift its P8 billion fixed-rate peso-denominated retail bonds successfully in November 2020,” said FLI.
This year, FLI would also sell an investment property trust via the Cyberzone Properties, Inc. subsidiary.
“Implemented with the steady expansion of FDC’s residential and recurrent income sector, FLI enters the REIT (trust of real estate investments) market this year, which contributes to FDC’s overall development,” saidFDC.
Filinvest Hospitality Corp. was “the group’s pandemic most impacted” and suffered a net loss of P731 million. When occupancy rates fell, revenues declined by 63.7% to P1.2 billion compared to P3.31 billion.
“Five out of six Filinvest Community hotels and resorts remained operational throughout 2020. But, due to transport and mobility constraints, they [are] extremely restricted,” the firm said.
In the meantime, FDC Utilities, Inc. has announced a revenue contribution of P1,9 billion or 14% which is 23% lower than the previous year’s figure.
In 2019, the revenues of FDC Utilities were P8.5 billion, 17% below P10.1 billion, while consumer demand dropped, especially during the second quarter.
“We are delighted to be able to manage our overall success in the tough economic climate in 2020. Some companies have been hit harder, but other companies also offer strong results,” said Ms. Gotianun-Yap.
For its portfolio growth, FDC has said it would examine utilities and renewable solutions such as renewable energy, water and wastewater.