Vol. XXII, No. 204 [ BusinessWorld Online ]
Wednesday, May 20, 2009 | MANILA, PHILIPPINES
LISTED CITYLAND Development Corp.’s net income dropped by more than a third after real estate sales slowed down in the first quarter, with new projects still in the early stages of construction.
The firm’s profits went down to P68.33 million from January to March, or P0.15 per share.
Revenues fell to P367.48 million from P498.98 million last year mainly due to slower real estate sales, which stood at P222.63 million, down from P354.38 million last year.
Cityland Development said the real estate market has been difficult but the first-quarter sales drop was mainly because it could not yet sell new projects under construction.
Cityland Development reduced loans and notes payable by almost a fifth to P2.24 billion from December and cut accounts payable by almost a quarter to P329.13 million during the same period.
The firm is preselling four high-rise commercial and residential condominium projects in Makati, Manila, Mandaluyong and Ortigas.
Cityland Development, which is led by businessman Stephen C. Roxas, said it needs about P689.66 million to complete its real estate projects.
Funds will come from sales of condominium and other property projects, the collection of installment receivables, maturing short-term investments, or from bank loans. The firm has credit lines worth P3.28 billion as of March 31.
Its shares closed unchanged at P1.66 apiece yesterday, or P11.07 for every peso of earnings. — D.G.K. Carreon