Wednesday, April 30, 2008 [ philstar.com ]
Shang Properties Inc., the real estate development arm of the Singapore-based Kuok Group, reported a 55.4-percent jump in net income last year to P944.5 million from P608 million a year earlier, boosted by higher sales of its condominium units and an increase in the appraisal value of its investment properties.
This resulted in an earnings per share of P0.213 which is higher than the P0.144 reported the previous year.
In a financial report filed with the Philippine Stock Exchange, Shang Properties said gross revenues rose 95.9 percent to P3.1 billion on the back of a 104-percent jump in the sales of the Shang Grand Tower and the St. Francis Shangri-La Place to P1.5 billion.
The company attributed the increase in sales to the accounting standard of recognizing the sales based on percentage of completion method. As of end-December 2007, the St. Francis Shangri-La Place was 60-percent complete.
Rental income rose 11.1 percent to P88.2 million due to the increase in rental rates and higher sales of tenants.
Interest income likewise went up to P297 million or nearly five times the P61.5 million recorded a year earlier due to the accretion of installment receivables.
Shang Properties said the value of its investment properties went up to P377.2 million.
Total cost and expenses rose 69.6 percent to P1.9 billion while cost of condominium units jumped by 128.3 percent due to the adoption of the percentage of completion method in the recognition of sales and costs on our projects.
The company’s share in net income of KSA Realty Corp. was P127.7 million or an increase of P65.3 million.
As of end-2007, Shang Properties had total assets of P17.2 billion, 30 percent higher than the previous level of P13.23 billion.
The P2-billion Shang Grand Tower is the Kuok Group’s first foray into the premium residential development segment of the property industry in the Philippines.
The Kuok Group has grown to become one of Asia’s most diversified and dynamic multinational conglomerates with a diversified portfolio of property assets in Malaysia, Singapore, Hong Kong, Thailand, China, Canada and Australia.
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