FEU is a good business model
The Far Eastern University has released its latest earnings report, and it shows why the Phinma Group is looking for more schools to acquire, just as the taipans already have universities under their respective wings.
FEU reported a P785-million net income for school year 2012-2013, a P191-million increase from the P594-million profit it disclosed three years ago.
And that is just for the academic operations.
The heirs of FEU founder Nicanor Reyes, in addition to managing the university, also get an upside from the continued lease of the Morayta campus from the family's FERN Realty.
FEU will pay FERN Realty P59.6 million just for this year for the use of five buildings (education, nursing, law, administration and the gymnasium) within the 1.79-hectare campus in Manila. FEU books the lease payments as part of the pass-on administrative expenses.