FILINVEST Development Corp., (FDC) the holding firm of the Gotianun family, is allocating a significant portion of its capital expenditures to its properties in Clarkfield, Pampanga.
FDC said it is allocating P38.9 billion in capital expenditure to its real-estate and hotel units, Filinvest Land Inc., Filinvest Alabang Inc. and Filinvest Hospitality Corp., mainly for land acquisition and property development in 2019.
“Capital expenditure in 2019 is roughly equally allocated between the trading segment of the real-estate business and the investment segment, which includes office, retail, hotel and logistics park developments,” said Josephine Gotianun-Yap, the company’s president.
The money will mainly be spent in its sprawling property in Clarkfield, the former US base, including the Clark International Airport, Filinvest Mimosa+ Leisure City and the 64-hectare Phase One of the group’s township development in New Clark City.
Part of the budgeted investments include the expansion of FDC’s hotel portfolio, Yap said.
The group has a pipeline of 2,600 additional keys in the planning and construction stages across 10 new hotels and expansions, with a target of 5,000 keys under management by 2023.
FDC primarily operates its hospitality business under two brands, Crimson and Quest.
FDC’s net income grew 31 percent in 2018 to P13.4 billion, from the previous year’s P10.27 billion, due to growth in the property and banking segments and also the power group’s ramped-up energy sales.
Revenues grew 26 percent to P73.3 billion, from last year’s P57.88 billion.
The bulk of the group’s gross revenues were generated by the property at 43 percent and banking at 41 percent, while power-generation operations contributed 13 percent of revenues. The balance of 3 percent came from the sugar business.
Property income reached P8.8 billion with growth driven mainly by its recurring income portfolio, while banking subsidiary EastWest Bank ended 2018 with net income of P4.5 billion and realizing an 11-percent return on equity, which it said is one of the highest in the industry.
The power segment registered P2.1 billion in net income, 16 percent of the group’s aggregate net income.
FDC Utilities Inc. operates the largest operating baseload power plant in Mindanao with a capacity of 405 megawatts.
Energy sales from the FDC Misamis power plant grew 24 percent in 2018, while sales from the FDC Misamis power plant grew 24 percent, it said.