Filinvest Development Corp. (FDC), the holding firm of the Gotianun Group, on Monday said it recorded an attributable income of P5.7 billion last year, down by 6 percent from the previous year’s P6.06 billion.
The company said its provision for income tax more than doubled in 2022 due to the one-time tax benefit by the Corporate Recovery and Tax Incentives for Enterprises Act or the Create law.
Revenues and other income rose by 13 percent to P71.1 billion resulting from a recovery across all of its major businesses.
“We are pleased with the steady recovery and improvement of each of our businesses towards last year’s second half. This gives us confidence that the trend will continue in 2023 with the support of a healthy macroeconomic environment,” FDC President and CEO Josephine Gotianun-Yap said. Banking and financial services led by EastWest Bank accounted for 42 percent of FDC’s bottom line in 2022, contributing a net income of P4.4 billion to the Filinvest Group. This was followed by the property business, composed of the real estate and hospitality segments, which posted a combined P3.5 billion or 33 percent of total.
The power subsidiary contributed P2.2 billion in net income or 21 percent of the total, while the balance of 4 percent came from other businesses.
FDC’s real estate business, composed of listed subsidiary Filinvest Land Inc. and Filinvest Alabang Inc., contributed a combined P4.9 billion in net income before tax to the group, 15 percent higher than the P4.3 billion in the previous year. Revenues from the residential segment rose by 11 percent to P13.3 billion as a result of construction progress.
The company said mall and rental revenues saw an improvement of 15 percent to P6.7 billion with the gradual reduction of rental concessions, reinstatement of escalation rates and increased mall occupancy levels. Net income after tax from the real estate business hit P4.1 billion.
Power subsidiary FDC Utilities Inc. (FDCUI) had a net income of P2.2 billion in 2022, a 6 percent improvement from the previous year. The net income growth was on the back of revenues that rose by 37 percent to P12.9 billion.
The company’s 405-megawatt coal plant in Misamis Oriental in Mindanao services a diverse customer base composed of 14 mostly triple A distribution cooperatives from the region. The company also has solar energy solutions through a 60:40 joint venture with Engie Services, one of the largest power generators and distributors in the world.
The company has interests in water through FDC Water Utilities Inc., a wholly owned subsidiary of FDCUI.
Hotel operations under Filinvest Hospitality Corp., meanwhile, saw a rebound in revenues of 60 percent to P1.9 billion in 2022 buoyed by the steady resurgence of tourism. Average room rates increased across the seven properties while occupancy rates were higher for Crimson Boracay as well as Quest in Cebu and Tagaytay.
The company’s portfolio has approximately 1,800 rooms across seven hotels in seven cities and five regions under the Crimson and Quest brands. The company only recently added Timberland Highlands Resort in Rizal in its portfolio.