1. business and industrial
2. company
3. merger and acquisition

COVER SHEET
1 7 0 9 5 7
SEC Registration Number
F I L I N V E S T
L A N D ,
I N C .
A N D
S U B S I D I A
S a n
J u a n ,
R I E S
(Company’s Full Name)
1 7 3
P .
G o m e z
t r o
M a n i l a
S t r e e t ,
M e
(Business Address: No. Street City/Town/Province)
Atty. Ma. Michelle Tibon-Judan
727-0431 (local 297)
(Contact Person)
(Company Telephone Number)
0 9
3 0
Month
Day
2 0 0 8
1 7 - Q
(Form Type)
Month
(Fiscal Year)
Day
(Annual Meeting)
(Secondary License Type, If Applicable)
Dept. Requiring this Doc.
Amended Articles Number/Section
Total Amount of Borrowings
Total No. of Stockholders
Domestic
Foreign
To be accomplished by SEC Personnel concerned
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LCU
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STAMPS
Remarks: Please use BLACK ink for scanning purposes.
1
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-Q
QUARTERLY REPORT PURSUANT TO SECTION 17 OF THE SECURITIES
REGULATIONS CODE AND SRC RULE 17(2)(b) THEREUNDER
1. For the quarterly period ended
2. SEC Identification Number
September 30, 2008
170957
3. BIR Tax ID 000-533-224
4. Exact name of issuer as specified in its charter FILINVEST LAND, INC.
Philippines
5. Province, Country or other jurisdiction of incorporation or organization
6. Industry Classification Code: _______ (SEC Use Only)
173 P. Gomez St., San Juan, Metro Manila
7. Address of issuer’s principal office
1500
Postal Code
02-727-04-31 to 39
8. Issuer ‘s telephone number, including area code
Not Applicable
9. Former name, former address, and former fiscal year, if changed since last report
10. Securities registered pursuant to Section 8 and 12 of the SRC
Title of Each Class
Number of shares of
Common Stock Outstanding
Common Stock, P 1.00 par value
24,254,209,509
Amount of
Debt Outstanding
5,059,300,000
11. Are any or all of these securities listed on the Philippine Stock Exchange?
Yes
x
No
2
12. Indicate by check mark whether the issuer:
(a) has filed reports required to be filed by Section 17 of the Code and SRC Rule 17
thereunder or Section 11 of the RSA Rule 1(a)-1 thereunder, and Sections 26 and 141 of
the Corporation Code of the Philippines, during the preceding twelve (12) months (or for
such shorter period that the registrant was required to file such reports);
Yes
x
No
(b) has been subject to such filing requirements for the past 90 days.
Yes
x
No
PART 1 – FINANCIAL INFORMATION
Item 1. Financial Statements
Please refer to Annex A for the Consolidated Financial Statements of Filinvest Land, Inc, and
Subsidiaries covering the interim periods as of September 30, 2008 and for the six-month period
then ended and as of December 31, 2007 and for the six-month period ended June 30, 2007.
Aging Schedule for the Company’s receivables as of September 30, 2008 is also presented in
Annex B.
FILINVEST LAND INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Consolidation
The consolidated financial statements include the financial statements of the Parent Company
and its subsidiaries together with the Group’s proportionate share in its joint ventures. The
financial statements of the subsidiaries are prepared for the same reporting period as the
Parent Company using consistent accounting policies.
The consolidated financial statements include the accounts of Filinvest Land, Inc. and the
following subsidiaries and joint ventures:
Subsidiaries:
Property Maximizer Professional Corp. (Promax)
Homepro Realty Marketing, Inc. (Homepro)
Property Specialist Resources, Inc. (Prosper)
Leisurepro, Inc. (Leisurepro)
Joint Ventures:
Filinvest Asia Corporation (FAC) 1
Cyberzone Properties Inc. (CPI) 2
Filinvest AII Philippines, Inc. (FAPI) 3
% of Ownership
Sept. 2008
Dec 2007
100
100
100
100
100
100
100
100
60
60
60
60
60
60
3
1
FAC owns fifty percent (50%) of the PBCom Tower in Makati City
CPI operates the Northgate Cyberzone in Filinvest Corporate City in Alabang,
Muntinlupa City.
3
FAPI develops the Timberland Sports and Nature Club and approximately 50 hectares
of land comprising Phase 2 of FLI’s Timberland Heights township project.
2
Major Developments
In February 2007, the Company achieved a record-breaking success with its follow-on
offering where it listed up to 3.7 billion new common shares at the Philippine Stock
Exchange. The follow-on offering was more than five times oversubscribed, raising around
$204 million for both the primary and secondary offerings. The offering raised additional
funds for the Company’s P5 billion capital expenditure budget for the fast track development
of targeted projects.
2. Segment Reporting
The Group’s operating businesses are organized and managed separately according to the
nature of the products and services provided, with each segment representing a strategic
business unit that offers different products and serves different markets. Generally, financial
information is required to be reported on the basis that is used internally for evaluating
segment performance and deciding how to allocate resources to segments.
The Group derives its revenues from the following reportable segments:
Real estate
This involves acquisition of land, planning, development and sale of various real estate
projects such as residential lots and housing units; entrepreneurial communities, large-scale
townships, residential farm estates, private membership club, residential resort development,
medium rise-buildings and condotel.
Leasing
This involves the operations of Festival Supermall and the leasing of office space in
Northgate Cyberzone, Alabang and in PBCom Tower, Makati City.
4
Comparative Financial Information Per Business Segment
(amounts in thousands)
As of and for the Nine-Month Period ended September 30, 2008
Revenues
Net income
Segment assets
Segment Liabilities
Less: Def. tax liabilities
Net segment liabilities
Cash flows arising from:
Operating activities
Investing activities
Financing activities
Real Estate
Operations
P 1,749,184
765,080
35,554,807
9,472,609
1,655,076
7,817,533
Leasing
Operations Combined
P 901,649 P 2,650,833
384,627
1,149,707
11,990,105
47,544,912
1,742,916
11,215,525
( 8,739)
1,646,337
1,751,655
9,569,188
P
P 379,112
(588,351)
261,300
22,350
(876,916)
(42,501)
P401,462
(1,465,267)
218,799
Eliminating
(P 21,446)
923,845
8,682
147,452
(138,770)
P
-
Consolidated
P 2,629,387
1,149,707
48,468,757
11,224,207
1,793,789
9,430,418
P
401,462
(1,465,267)
218,799
As of and for the Nine-Month Period ended September 30, 2007(Unaudited)
Revenues
Net income
Segment assets
Segment Liabilities
Less: Def. tax liabilities
Net segment liabilities
Cash flows arising from:
Operating activities
Investing activities
Financing activities
Real Estate
Operations
P 1,975,556
992,179
34,324,817
8,275,485
1,573,094
6,702,391
Leasing
Operations Combined
P 766,294 P 2,741,850
322,820
1,314,999
11,256,486
45,581,803
1,416,764
9,692,249
(7,647)
1,565,447
1,424,411
8,126,802
P
P 198,460
(295,265)
84,306
296,871
( 712,202)
1,961,559
P 495,331
(1,007,467)
2,045,865
Eliminating
(P 31,183)
( 9,436)
866,215
(44,003)
147,452
(191,455)
Consolidated
P 2,710,667
1,305,563
46,447,518
9,648,246
1,712,899
7,935,347
P
P
-
495,331
(1,007,467)
2,045,865
3. Long -Term Debt
The comparative details of this account are as follows (amounts in thousands):
2008
2007
September 30 December 31
Term loans from a financial institution P 2,250,000
P 2,250,000
Developmental loans from local banks
2,809,300
1,317,464
Total
P 5,059,300
P 3,567,464
5
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of
Operations
Results of Operations for the nine-month period ended September 30, 2008 compared to ninemonth period ended September 30, 2007
FLI registered a consolidated net income of P 1,149.71 million for the first three (3) quarters of
2008, lower by P 155.86 million or by 11.9% from the same period last year of P 1,305.56
million. However, last year’s net income included equity in net earnings of Filinvest Alabang,
Inc. (FAI) where FLI owns 20% equity interest, amounting to P311.21 million. FAI’s net
earnings in 2007 were higher because of an extraordinary gain realized from the sale of its FLI
shares during FLI’s follow on offering in February 2007. Excluding equity in net earnings of FAI,
net income would amount to P 1,104.10 million in 2008 and P 994.36 million in 2007. Net
income in 2008 would be higher by 11% than last year’s net income.
In 2007, FLI decided to voluntarily change its revenue recognition policy on sale of subdivision
lots and housing units and follow the industry’s pace in discontinuing the use of installment
method. The decision emphasizes that the application of full accrual method is presumed to result
in financial statements that achieve a fair presentation in accordance with Philippine Accounting
Standards(PAS) 18, Revenues, and follow the best practice in the real estate industry.
Revenues
Net revenues from real estate and leasing business segments increased by 4.67% to P 3,169.11
million in 2008 from the same period last year of P 3,027.46 million. The increase is mainly due
to higher leasing revenues in 2008 by 16.6% brought about by higher occupancy rate in Filinvest
Supermall and more leasable space in Northgate Cyberzone with the completion and lease of
additional buildings in 2008. Revenues from the Mall and office spaces increased by 10% and
30%, respectively. Real estate sales booked during the three (3) quarters are broken down to sales
per sector as follows: Middle Income 40.8%; Affordable 20.4%; High End 15.6%; Socialized
9.1%; Farm Estate 7.0%; Industrial Estate 3.6%; Others 3.5%. Gross profit margin was 55.9%
and 55.6% for September 30, 2008 and September 30, 2007 respectively.
Other sources of rental income include the ready-built-factories in Filinvest Technology Park in
Calamba, Laguna.
Interest income increased by 13.8% due to higher interest income on installment sales brought
about by higher installment receivables.
Expenses
General and administrative expenses (G&A) increased by P 45.36 million or by 6.9%, from
P657.59 million in 2007 to P 702.95 million in 2008. The increase was due to substantial
expenses made for corporate advertising to promote the Company and its major township
projects, depreciation brought about by additional buildings completed and leased out in 2008,
higher transportation and traveling expenses resulting from additional regional and provincial
projects and higher fuel cost, higher rental expense brought about by an increase in office rental
rates.
6
Likewise, selling and marketing expenses grew by P 47.90 million or by 16.05% from P298.44
million as of September 2007 to P 346.34 million for the same period in 2008. The increase was
mainly due to bigger broker’s commissions, service fees as well as increase in expenses related to
product launchings and special events brought about by the Company’s aggressive marketing
campaign. Tripping expenses also increased because of higher fuel costs in 2008.
Financial Condition as of September 30, 2008 compared to as of December 31, 2007
As of September 30, 2008, the Company’s total consolidated assets reached P 48,468.75 million,
an increase of 4.35% or by P 2,021.24 million from P 46,447.52 million balance as of December
31, 2007. The following are the material changes in account balances:
49% Decrease in Cash and Cash Equivalents
Substantial amount of cash was used in the development of existing and new projects, acquisition
of land for Medium-Rise Building projects and for the construction of new buildings (investment
properties). Funds were also used in the acquisition of shares into treasury. Aside from the usual
proceeds from sale of residential projects, funds from leasing operations as well as from
rediscounting of receivables, working capital of the Company was beefed up during the current
period by availments of available short-term and long-term credit facilities. These funds will
continually be used to finance the Company’s on-going projects as well as new ones already lined
up for the remaining months of the year.
10% Increase in Mortgage, Notes and Installment Contract Receivables
The increase in this account arose mainly from new journalized sales which were attributed to
the attractive financing schemes that were offered by the Company for its housing projects. It is
worthwhile to note that a 28% increase in receivables from financial institutions which provided
financing to the Company’s real estate buyers was recorded during the current period from the
same period last year.
52% Increase in Due from Affiliated Companies
The increase of P 2.59 million was due to temporary interest-bearing advances to an affiliate
which was expected to be collected in the fourth quarter of the year.
9% Increase in Other Receivables
The increase in other receivables was attributed to the rise in advances to joint venture partners
for land development, as well as in advances to officers and employees, temporary advances to
contractors representing down payments for various development contracts, advances to electric
companies and to homeowners associations in the ordinary course of business.
9% Increase in Real Estate Inventories
The movement in this account was mainly due to new acquisitions of rawland in certain parts of
Metro Manila, Rizal, Cebu and Davao all of which are intended for development.
15% Increase in Investment in Club Projects
The increase was due to continued development in Timberland Sports and Nature Club.
7
99% Increase in Property & Equipment
Property and equipment increased due to the ongoing building constructions of CPI to create
additional office space and meet the growing demand from BPO and call center locators for the
current period. Building improvements and acquisition of additional equipment for the Festival
Supermall structure also contributed to the increase.
56% Increase in Income Tax Payable
This movement was due to the increase in taxable income primarily brought about by the growth
in rental income.
27% Decrease in Due to Related Parties
Substantial intercompany advances made in the ordinary course of business were settled during
the first three quarters of 2008.
49% Increase in Pension Liability
The increase was due to the accrual for the period net of cash contributions made to the
retirement fund.
42% Increase in Long-Term Debt
New loans were availed by the Group to finance the contruction of various major projects
including the Medium Rise Buildings, the Grand Cenia Hotel & Residences and the BPO
buildings in Northgate Cyberzone.
Acquisition of Treasury Stock
On December 20, 2007, FLI Board approved the buyback of some of the issued shares of stock of
the Company over a period of twelve (12) months up to an aggregate amount of P 1.5 billion
pesos, in view of the strong financial performance of the Company and the very large discrepancy
that existed between the current share price and the net asset value of the Company. FLI
Management believes that the Company’s shares were currently being undervalued by the
market, and the share buy-back program would enhance shareholder’s value. As of September 30,
2008, the Company had acquired treasury shares amounting to P 218.74 million.
14% Increase in Retained Earnings
This was brought about by the Company’s net income of P 1,149.71 posted as of September 30,
2008 net of cash dividends paid in 2008.
8
Performance Indicators
Financial Ratios
Particulars
As of and for the
As of Dec. 31, 2007
9-month period ended and for the 9-month
Sept. 30, 2008
period ended Sept. 30,
2007
Earnings Per Share
Basic ; annualized
P 0.063
P 0.071
Debt to Equity
Ratio
Notes Payable & Long-term Debt
Total Stockholders’ Equity
0.14: 1
0.10: 1
23%
21%
7.08 times
6.04 times
10 times
24.50 times
Debt Ratio
Total Liabilities
Total Assets
EBITDA to Total
Interest Paid
Price Earnings
Ratio
EBITDA_____
Total Interest Payment
Closing Price of Share
Earnings Per Share
Earnings per share (EPS) posted for the three quarters of 2008 went down compared to the EPS
of September 30, 2007 on account of lower net income in 2008 as explained in the preceding
section of this report.
The debt to equity (D/E) ratio as well as the debt ratio slightly increased due to the availment by
the Group of new loans to finance the contruction of various projects including the Medium Rise
Buildings, the Grand Cenia Hotel & Residences and the BPO buildings in Northgate Cyberzone.
Price earnings ratio (PER) significantly declined due to lower market share price of the
Company’s stocks brought about by the unfavorable effect of the stock market slump in general.
As of September 30, 2008 and 2007, market share price of the Company’s stock was at P 0.63
and P 1.74 per share, respectively.
PART II - OTHER INFORMATION
Item 3. Business Development/New Projects
Going forward, FLI expects to remain focused on its core residential real estate development
business which now includes medium rise buildings. However, as a result of the acquisition of
ownership interest in certain investment properties, FLI has diversified its real estate portfolio to
include retail and office investment properties that generate recurring revenues.
9
FLI intends to launch, based on market conditions, a total of 38 new projects and additional
phases. Butuan City in Agusan del Sur is now FLI’s newest provincial location. In addition,
medium-rise buildings in other inner-city locations such as Ortigas, Pasig City, Santolan, Pasig
City and Sta. Mesa, Manila have been introduced to the market. The Company has also started
the development of a joint venture project covering a high-rise building in Makati City. Properties
in Cebu City and Davao City were acquired for medium-rise buildings.
As of September 30, 2008, FLI has launched 18 new projects and phases with a total sales value
of P 4.20 billion. Additional 15 projects and phases are targeted for launching within the year.
The following table shows the new projects and additional phases that are still to be launched
within the year (subject to change due to market conditions and other factors) and projects that
already were on stream as of September 30, 2008.
Project
Type
Location
Summerbreeze Townhomes - Phase 2
Alta Vida - Phase 3
Springfield View Stage 2 – Cluster 1
Woodville – Phase 2
Aldea del Sol – Phase 6
Alta Vida - Phase 3
Glens at Park Spring – Phase 2
Raintree Prime Residences
Summerbreeze Townhomes - Phase 2
Affordable
Affordable
Affordable
Affordable
Affordable
Affordable
Affordable
Affordable
Affordable
Sto. Tomas, Batangas
San Rafael, Bulacan
Tanza, Cavite
Gen. Trias, Cavite
Mactan, Cebu
San Rafael, Bulacan
San Pedro, Laguna
Dasmarinas, Cavite
Sto. Tomas, Batangas
Villa Montserrat Expansion
BCR Property
Nusa Dua – Phase 4
Nusa Dua – Phase 5
Banyan Crest
Affordable
Affordable
Farm Estate
Farm Estate
High-End
Havila, Taytay, Rizal
Gen. Trias, Cavite
Tanza, Cavite
Tanza, Cavite
Timberland Heights, San Mateo, Rizal
Kembali Coast - Phase 2
The Arborage at Brentville – Phase B
The Arborage at Brentville – Phase C
The Tropics – Phase 2
Costa Villas
Highlands Pointe 2 Expansion
Auburn Place at Filinvest South
Filinvest Homes Butuan
Highlands Pointe 2 Expansion
Highlands Point 3 (The Peak)
La Mirada of the South
La Mirada of the South
Lapu-Lapu Property
Mission Hills – Sta. Sophia Phase 1
Tamara Lane (formerly Imari)
High-End
High-End
High-End
High-End
Middle-Income
Middle-Income
Middle-Income
Middle-Income
Middle-Income
Middle-Income
Middle-Income
Middle-Income
Middle-Income
Middle-Income
Middle-Income
Samal Island, Davao
Binan, Laguna
Binan, Laguna
Cainta, Rizal
Davao
Havila, Taytay, Rizal
Binan, Laguna
Butuan City
Havila, Taytay, Rizal
Havila, Taytay, Rizal
Binan, Laguna
Binan, Laguna
Mactan, Cebu
Havila, Taytay, Rizal
Caloocan City
10
The Villas Expansion
Mactan Tropics 2
Princeton Heights (form. Walnut Creek)
Mission Hills – Sta. Cecilia (comml)
One Oasis Cebu Bldg 1
One Oasis – Davao – Bldg 3
One Oasis – Ortigas – Bldg 5
One Oasis – Sta. Mesa – Bldg 1
Pamintuan Property – Bldg 1
One Oasis – Davao – Bldg 2
One Oasis – Ortigas – Bldg 3 & 4
Bali Oasis – Santolan – Bldg 1
Blue Isle - Phase 3
Filrizam Property
Sunrise Place - Phase 2
Middle-Income
Middle-Income
Middle-Income
Middle-Income (commercial)
Middle-Income (mid-rise bldg)
Middle-Income (mid-rise bldg)
Middle-Income (mid-rise bldg)
Middle-Income (mid-rise bldg)
Middle-Income (mid-rise bldg)
Middle-Income (mid-rise bldg)
Middle-Income (mid-rise bldg)
Middle-Income (mid-rise bldg)
Socialized
Socialized
Socialized
Havila, Taytay, Rizal
Mactan, Cebu
Molino, Cavite
Antipolo City
Cebu City (Mabolo)
Davao City
Pasig City, Metro Manila
Sta. Mesa, Manila
Davao City
Davao City
Pasig City, Metro Manila
Marikina City, Metro Manila
Sto. Tomas, Batangas
Gen. Trias, Cavite
Tanza, Cavite
Aside from the residential projects, FLI is continuing to construct business process outsourcing
(BPO) office spaces at Northgate Cyberzone. Three (3) buildings were recently completed while
another two (2) buildings are targeted to be finished and are expected to be turned over to locators
early next year. With the completion of the buildings under construction, FLI will have a total
gross leasable area of 166,052 sq. meters in its portfolio. Currently, FLI is one of the largest BPO
office space providers in the country.
The Company also intends to continue carrying out, through its joint venture companies, an
intensive marketing campaign so as to maintain a high occupancy rate in the Festival Supermall,
PBCom Tower and Northgate Cyberzone properties; thereby, maximizing its leasing revenues.
Information on occupancy rates are presented as follows:
Gross Leasable Area
Sept. 30, 2008
Dec. 31, 2007
Sept. 30, 2007
Festival Supermall
132,211 sq.m.
92.00%
90.40%
91.00%
PB Com Tower
35,148 sq.m.
97.00%
99.50%
100%
Expanding gross
94.00%
93.80%
93.00%
leasable area
97,787 sq.m.
80,419 sq.m.
70,680 sq.m.
Northgate Cyberzone
11
Financial Risk Exposures
The Group’s Finance and Treasury function operates as a centralized service for managing
financial risk and activities as well as providing optimum investment yield and cost efficient
funding for the Group. The Board of Directors reviews and approves the policies for managing
each of these risks. The policies are not intended to eliminate risk but to manage it in such a way
that risk are identified, monitored and minimized so that opportunities to create value for the
stakeholders are achieved.
The main financial risk exposure for the Company are Liquidity Risk, Interest Rate Risk and
Credit Risk.
Liquidity Risk
The Group seeks to manage its liquidity profile to be able to finance capital expenditures and
service debts as they fall due. To cover its financing requirements, the Group intends to use
internally generated funds and available long term and short term credit facilities including
receivables rediscounting lines granted by several financial institution to the Group.
As part of its liquidity risk management, the Group regularly evaluates its projected and actual
cash flows. It also continuously assesses conditions in the financial markets for opportunities to
pursue fund raising activities, in case any requirements arise.
The Company has availed of additional 5-year loans from domestic financial institutions
amounting to P 1,500.00 million and P 500.00 million on October 15, and November 05, 2008
respectively to partly finance its ongoing development projects. Other than the foregoing and
except as discussed in the Management’s Discussion and Analysis of Financial Condition and
Results of Operations, there are no material events subsequent to September 30, 2008 up to the
date of this report that have not been reflected in the financial statements for the interim period.
Interest Rate Risk
The Group’s exposure to market risk for changes in interest rates relates primarily to the Group’s
loans from various financial institutions. The Company regularly keeps track of the movement in
interest rate and the factors influencing it.
Of the total P 5,059.30 million loan outstanding as of September 30, 2008, P 2,809.30 million is
on floating rate basis. The following table demonstrates the sensitivity to a reasonable possible
change in interest rates, with all other variables held constant, of the Group’s profit before tax.
Increase (decrease)
In basis points
September 30, 2008
+200
-200
Effect on income
before income tax
(In Thousands)
(42,139)
42,139
Credit Risk
It is the Group’s policy that buyers who wish to avail the in-house financing scheme are subject
to credit verification process. Receivable balances are being monitored on a regular basis and are
subjected to appropriate actions to manage credit risk. In addition to this, the group has a
mortgage insurance contract with the Home Guaranty Corporation for a retail guaranty line. With
respect to credit risk arising from other financial assets of the Group, which comprise cash and
12
cash equivalents and AFS financial assets, the Group’s exposure to credit risk arises from default
of counterparty, with a maximum exposure equal to the carrying amount of these instruments.
The maximum credit risk exposure of the Group to these financial assets as of September 30,
2008 is P 8,992.33 million.
Foreign Currency Risk
Financial assets and financing facilities extended to the Group are exclusively denominated in
Philippine Peso. As such, the Group’s exposure to this risk is non-existent.
Financial Instruments
The Group’s principal financial instruments are composed of Cash and Cash Equivalents,
Mortgage and installment contract receivables, other receivables,. Loans from financial
institutions.The Company does not have any complex financial instruments like derivatives.
Comparative Fair Values of Principal Financial Instrument
September 30, 2008
Carrying Value
Sept. 30, 2008
Fair Value
June 30, 2008
Carrying Value
June 30, 2008
Fair Value
884,720
884,720
1,089,646
1,089,646
6,329,180
6,658,519
6,055,213
6,434,136
Other Receivables
1,757,579
1,757,579
1,662,264
1,662,264
Long term Debt
5,059,300
5,022,464
4,581,664
4,544,828
Cash
&
Equivalents
Mortgage,
ICR
Cash
Notes
&
Due to the short-term nature of Cash & Cash Equivalents, the fair value approximates the
carrying amounts.
The estimated fair value of Mortgage notes and installment contracts receivables, is based on the
discounted value of future cash flows from these receivables.
Due to the short term nature of Other Receivables, the fair value approximates the carrying
amount.
The estimated fair value of debts with fixed interest and not subjected to quarterly repricing is
based on the discounted value of future cash flows using the applicable risk free rates for similar
types of loans adjusted for credit risk. Long term debt subjected to quarterly repricing is not
discounted since it approximates fair value.
Investments in foreign securities
The Company does not have any investments in foreign securities.
13
Item 4. Other Disclosures
1. Except as disclosed in the Notes to Consolidated Financial Statements and Management’s
Discussion and Analysis of Financial Condition and Results of Operations, there are no
unusual items affecting assets, liabilities, equity, net income or cash flows for the interim
period.
2. Except for income generated from retail leasing, there are no seasonal aspects that had a
material effect on the Company’s financial conditions or results of operations. There are
no unusual operating cycles or seasons that will differentiate the operations for the period
January to September 30, 2008 from the operations for the rest of the year.
3. Aside from any probable material increase in interest rate on the outstanding long-term
debt, there are no known trends, events or uncertainties or any material commitments that
may result to any cash flow or liquidity problems of the Company within the next 12
months.
4. There are no changes in estimates of amounts reported in prior year (2007) that have
material effects in the current interim period.
5. Except for those discussed in the Management’s Discussion and Analysis of Financial
Condition and Results of Operations, there are no other issuances, repurchases and
repayments of debt and equity securities.
6. Except as discussed in the Management’s Discussion and Analysis of Financial
Condition and Results of Operations, and Financial Risk Exposures there are no material
events subsequent to September 30, 2008 up to the date of this report that have not been
reflected in the financial statements for the interim period.
7. There are no changes in contingent liabilities or contingent assets since December 31,
2007 except for the sale of additional receivables with buy back provision in certain cases
during the interim period.
8. There are no material contingencies and any other events or transactions affecting the
current interim period.
9. The Company is not in default or breach of any note, loan, lease or other indebtedness or
financing arrangement requiring it to make payments, or any significant amount of the
Company’s payables that have not been paid within the stated trade terms.
10. There are no significant elements of income that did not arise from the Company’s
continuing operations.
11. Except for those discussed above there are no material changes in the financial
statements of the Company from the year ended December 31, 2007 to September 30,
2008.
14
12. There are no off-balance sheet transactions, arrangements, obligations (including
contingent obligations), and other relationships of the Company with unconsolidated
entities or other persons created during the reporting period other than those which were
previously reported.
13. There are no other information required to be reported that have not been previously
reported in SEC Form 17-C.
15
ANNEX A1
FILINVEST LAND, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
( Amounts in Thousands)
September 30, 2008
(Unaudited)
December 31, 2007
(Audited)
ASSETS
Cash and cash equivalents
Mortgage, notes and installment contracts receivables
Due from affiliated companies
Other receivables
Real estate inventories
Investment in an associate
Available-for-sale financial assets
Investment in club project at cost
Investment property
Property and equipment
Goodwill
Other assets
884,720
6,329,180
7,576
1,757,579
18,292,406
3,844,839
13,276
300,194
10,363,304
833,009
5,445,488
397,186
1,729,721
5,766,740
4,983
1,457,925
16,736,525
3,799,228
13,276
260,106
10,502,311
419,259
5,445,488
311,956
TOTAL ASSETS
48,468,757
46,447,518
Accounts payable and accrued expenses
Income tax payable
Due to related parties
Pension liability
Deferred income tax liabilities
Long-term debt
Total Liabilities
4,186,026
131,670
23,534
29,888
1,793,789
5,059,300
11,224,207
4,231,351
84,363
32,113
20,056
1,712,899
3,567,464
9,648,246
EQUITY
Common stock
Preferred stock
Treasury shares
Additional paid-in capital
Revaluation reserve on available-for sale financial assets
Share in revaluation increments\ in land of Filinvest Alabang, Inc.
Retained earnings
Total Equity
24,470,708
80,000
(218,736)
5,612,321
(2,619)
1,876,422
5,426,450
37,244,546
24,470,708
80,000
TOTAL LIABILITIES AND EQUITY
48,468,757
46,447,518
LIABILITIES AND EQUITY
5,612,321
(2,619)
1,876,422
4,762,440
36,799,272
ANNEX A
FILINVEST LAND INC
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in Thousands)
(Unaudited)
Three Month Ended Sept. 30
2008
2007
REVENUE
Real estate sales
Cost of real estate sales
Realized gross profit on real estate sales
Rental income
Interest income
Equity in net earnings of an associate
Others
EXPENSES
General and administrative expenses
Selling and marketing expenses
Interest expense
Foreign exchange loss
INCOME BEFORE INCOME TAX
PROVISION FOR INCOME TAX
Current
Deferred
NET INCOME
Nine Month Ended Sept 30
2008
2007
895,401
(423,488)
471,913
305,464
86,256
15,817
79,187
958,637
980,677
(444,096)
536,581
255,029
69,343
25,339
43,420
929,712
2,308,025
(1,016,900)
1,291,125
861,083
279,049
45,610
152,520
2,629,387
2,289,162
(1,016,167)
1,272,995
738,303
245,187
311,207
142,975
2,710,667
238,316
101,038
48,295
349
387,998
138,453
97,951
90,939
2,433
329,776
702,948
346,345
100,525
2,058
1,151,876
657,586
298,439
105,749
3,978
1,065,752
570,639
599,936
1,477,511
1,644,915
90,460
44,803
135,263
102,931
43,758
146,689
248,453
79,351
327,804
256,412
82,940
339,352
435,376
453,247
1,149,707
1,305,563
1,532,943
1,740,751
24,362,459
24,470,708
0.063
0.071
Earnings per share amounts were computed as follows:
a. Net income (annualized)
b. Weighted average number of outstanding common shares
after considering reciprocal holdings in an associate and
treasury shares
c. Earnings per share - basic/diluted (a/b)
P
Reciprocal interest relating to FAI's ownership in the Group and treasury shares are deducted from the
total outstanding shares in computing the weighted average number of outstanding common shares.
ANNEX A2
FILINVEST LAND, INC.
Consolidated Statements of Changes in Equity
(Amounts in Thousands of Pesos)
(Unaudited)
September 30
2008
2007
24,470,709
24,470,708
80,000
80,000
Capital Stock
Common - P1 par value
Authorized - 33 billion shares in 2008 and 2007
Issued & outstanding - 24,470,708,509 shares in 2008 and 2007
Preferred - P0.01 par value
Authorized - 8 billion shares in 2008 and 2007
Issued and outstanding - 8 billion shares in 2008 and 2007
Treasury shares
Additional Paid-In Capital
Revaluation reserve on available-for-sale financial assets
Share in Revaluation Increment on land of an associate
(218,736)
5,612,321
(2,619)
5,612,321
(909)
1,876,422
1,876,422
4,762,440
3,195,571
Retained Earnings
Balance at beginning of year
Cash dividends
Net Income
Balance at end of period
(485,698)
-
1,149,707
1,305,563
5,426,449
4,501,134
37,244,547
32,038,542
ANNEX A3
FILINVEST LAND, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
( Amounts in Thousands )
( Unaudited )
Nine Months Ended September 30
2008
2007
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income before income tax
Adjustments for:
Interest expense
Depreciation and amortization
Provision for retirement benefits
Equity in net earnings of an associate
Interest income
Operating income before working capital changes
Changes in operating assets and liabilities:
Decrease ( increase ) in:
Mortgage, notes and installment contracts receivable
Other receivables
Real estate inventories, net of rawland acquisitions &
capitalized interest costs
Other assets
Increase ( decrease ) in:
Accounts payable and accrued expenses
Pension liability
Net cash provided by ( used in) operation
Interest received
Interest paid
Net cash provided by (used in) operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Rawland acquisition & Project development cost
Acquisition of property and equipment
Decrease in investment in club project
Decrease in investment property
Payment on preferred stock subscription
Cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes payable, corporate notes and long term-debt
Payments of notes payable, corporate notes and long term-debt
Proceeds from rediscounting of receivables
Buy back & remittance of rediscounted receivables
Decrease(increase) in amounts due from related parties
Increase(decrease) in amounts due to related parties
Acquisition of treasury shares
Proceeds from stock offering
Cash used in financing activities
NET DECREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING
CASH AND CASH EQUIVALENTS, END
1,477,511
100,525
152,124
13,199
(45,610)
(279,049)
1,418,700
1,644,915
68,342
140,403
6,507
(311,207)
(245,187)
1,303,773
(562,440)
(299,654)
(445,215)
(812,001)
(413,862)
(85,230)
(254,049)
205,096
325,698
(16,566)
562,722
(3,115)
366,646
279,049
(244,233)
557,211
245,187
(307,067)
401,462
495,331
(998,311)
(455,610)
(40,088)
28,742
(700,745)
(319,340)
(67,382)
80,000
(1,465,267)
(1,007,467)
2,330,000
(838,164)
1,013,183
(2,056,312)
(2,593)
(8,579)
(218,736)
1,865,000
(5,750,000)
1,015,730
(520,624)
10,962
(50,885)
5,475,682
218,799
2,045,865
(845,006)
1,533,729
1,729,721
468,719
884,720
2,002,448
ANNEX B
FILINVEST LAND, INC.
Aging of Receivables
Amounts in Thousand Pesos
As of September 30, 2008
Current
1-30 days
31-60 days 61-90 days
91-120 days
>120 days
Total
Type of Account Receivable
a) Mortgage, Notes & Installment
Contract Receivable
1. Installment Contracts Receivable
2. Receivable from financing Institutions
Sub-total
b) Other Receivables
Less: Allowance for doubtful accounts
Net
Net Receivables
Account Receivable Description
Type of Receivables
5,443,478
649,687
6,093,165
29,379
40,419
16,165
16,443
133,609
29,379
40,419
16,165
16,443
133,609
1,757,579
-
-
-
-
7,850,744
29,379
40,419
16,165
16,443
1,757,579
1,757,579
Nature/Description
133,609
Collection
Period
Installment contracts receivables
This is the Company's in-house financing, where buyers
are required to make downpayment and the balance to
be paid in equal monthly installments
5-15 years
Receivable from financing
institutions
This represents proceeds from buyers' financing under one
or more of the government programs granted to finance buyers
of housing units and mortgage house financing of private banks.
Current
Other receivables
This represents claims from other parties arising from the
ordinary course of business. It also includes advances
for expenses/accommodations made by the Company in favor
of officers and employees.
Current
Normal Operating Cycle: 12 calendar months
5,679,493
649,687
6,329,180
1,757,579
8,086,759