LISTED SHANG Properties, Inc. is optimistic that the company can replicate its first-half and second-quarter performance for the rest of the year.
The property firm’s latest financial report showed it had posted a P218-million consolidated net income for April to June, more than a third higher than year-ago figures.
The growth was mainly driven by higher rental income and revenues from condominium units.
First-half net profits also went up by more than a fifth to P407 million from a year earlier.
"Although things have become a bit more difficult, we still think we will perform better [in the second half]," Shang Properties President and Chief Executive Officer Juan Andres D. Bautista said in a phone interview.
"Although consumers are conscious of the costs of commodities, people are still purchasing," he added.
Revenues for the second quarter went up by 35% to P847 million from a year earlier, with condominium sales and rentals as the main contributors.
The sale of condominium units of St. Francis Shangri-La Place in the first half went up by almost a quarter to P853 million, while rental income from Shangri-La Plaza Mall tenants increased by a tenth to P389 million from a year ago, the company said.
Shang Properties also gained from its 53% stake in KSA Realty Corp., which contributed P169 million to Shang Properties’ total net income.
The company bought the 29% stake of San Miguel Properties, Inc. in KSA earlier this year, making Shang Properties the majority holder.
In a report to stockholders in June, Mr. Bautista said they have three projects lined up this year.
These are the $250-million luxury hotel in Fort Bonifacio, Taguig City, which the company expects to complete by 2012; the redevelopment of its 8.6-hectare Shangri-La Place in the Ortigas business district in Pasig, which is in the final stage of being completed; and the possibility of expanding the mall by another 30,000 square meters to enhance its integrated community.
Formerly EDSA Properties Holdings, Shang Properties leases properties to Shangri-La Plaza Corp., where it has a 79% stake, and Edsa Shangri-La Hotel.
The company also owns a carpark building, which it leases to shoppers and patrons of Shangri-La Plaza mall and the Edsa Shangri-La Hotel.
Shang Properties also has an interest in Edsa Shangri-La Hotel & Resort, Inc. and Shangri-La International Hotel Management Ltd. In July, the company acquired a 23.52% stake in KSA Realty Corp., the owner and operator of the Enterprise Center, one of the most luxurious office buildings in the country.
Share prices of Shang Properties yesterday closed at P1.52 apiece.
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