Vol. XXII, No. 201-A [ BusinessWorld Online ]
Saturday, May 16, 2009 | MANILA, PHILIPPINES
Two property companies reported higher profits for January to March, riding on higher sales from residential projects.
In a statement, Lucio C. Tan-led Eton Properties Philippines, Inc. said the company was able to recognize revenues from one project after construction activities progressed during the first quarter.
Eton Properties turned around to P18 million in profit from the P48-million loss in the first quarter 2008, while revenues jumped to P353 million. "The positive first-quarter results were mainly driven by revenue realized from the company’s One Archers Place project in Taft Ave. where construction activities have already reached the 10th floor as of March," the company said.
Eton Properties follows the accounting rule known as the percentage-of-completion method, in which revenues are recognized based on construction progress. This was the reason why the new property player incurred net loss last year.
Eton Properties said it expects higher profits this year from a number of projects, which include The Eton Residences Greenbelt in Makati, Eton Baypark Manila, Eton Emerald Lofts in Ortigas City, Eton Parkview Greenbelt, Belton Place in Makati, South Lake Village at Eton City in Laguna, and The Manors at North Belton Communities in Quezon City.
Meanwhile, Gotianun-led Filinvest Land, Inc. told the stock exchange that its net income grew by a tenth to P475.8 million from January to March, while revenues went up by 7% to P1.42 billion.
Real estate sales contributed the most with P948 million, followed by rental income both from residential and commercial properties.
Filinvest Land said residential sales reservations during the first three months of 2009 went up by 14% to P1.87 billion as demand for its core business of residential housing for the socialized, affordable and middle-income markets continue to remain steady.
The property company said its newest product line — medium-rise buildings or several five-storey buildings clustered around amenities — also continue to generate interest.
The company has four medium-rise projects, namely One Oasis Ortigas and Bali Oasis Marcos Highway in Pasig, One Oasis Davao, and One Oasis Cebu. Filinvest said Festival Supermall, PBCom Tower and Northgate Cyberzone in Alabang reported higher lease rates. To date, Filinvest’s total office building portfolio stands at over 132,000 square meters.
Shares in Eton Properties did not move at P2.50 per share on Friday, while Filinvest Land shares went up by 3.12% or two centavos to P0.66. — KJRL