Wednesday, April 09, 2008 [ manilatimes.net ]
THE developer of Tagaytay Highlands told the Philippine Stock Exchange on Tuesday that its profit last year more than doubled as gross sales value surged due to brisk sales of its latest real estate project.
In its disclosure, Belle Corp. said its net income jumped by 118 percent to P332 million year on year, as gross sales value more than doubled to P1.5 billion from P684 million in 2006. Net revenues from operating sources at end-December grew by 7 percent to P622 million.
The company attributed the growth to the “favorable market reception” of Belle’s newest upscale residential project, Lakeside Fairways, as well as the continued lot sales in Plantation Hills at Greenlands and The Verandas at Saratoga Hills.
“The robust economic outlook for the Philippines and the relatively stable political environment were major contributors to the strong performance of Belle during 2007, as well as for the whole economy. We continue to be bullish on the high-end property market in the Philippines for 2008 despite the recent slowdown in the US economy,” Willy Ocier, Belle vice-chairman, said.
The company’s farm lots subdivision, Plantation Hills, was completed in 2005 with the fourth phase done during the first quarter of last year. The latest phase of the project called The Ranch, will be launched this year.
Development for The Verandas started two years ago and was completed in December, while Lakeside Fairways, a lots-only subdivision at the south of the existing Tagaytay Midlands golf course, was introduced April last year. At end-December, the first four phases of Lakeside Fairways were 86-percent sold. Revenues from Lakeside Fairways lots pre-sold last year will appear in Belle’s books this year.
The firm’s operating expenses, including depreciation and amortization, grew by 10 percent to P143 million year on year due to higher project activity. This led to an income of P257.6 million from real estate operations or 25 percent higher than previous year.
Equitized net earnings from associated companies rose by 37 percent to P72.2 million and these came from its 36-percent owned associate, Highlands Prime Inc., as well as from its 34-percent owned associate, Pacific Online Systems Corp.
Interest expense dropped by 9 percent to P223.1 million on the back of lower interest rates. Due to the appreciation of the peso against the dollar, Belle earned P166.1 million in foreign exchange translation gain last year or almost 88 percent higher from its dollar-denominated debt of about $22 million.
Total assets grew by 2.5 percent to P9.51 billion while cash and cash equivalents increased by 10 percent to P63.3 million year on year. Receivables rose by 27 percent to P431.6 million due to its new projects.-- Likha C. Cuevas-Miel
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