Wednesday, August 5, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]
HIGH-END property developer Belle Corp. saw second- quarter profits shoot up to P119 million as demand for its Tagaytay Highlands projects remains brisk.
In a statement filed at the Philippine Stock Exchange yesterday, Belle Corp. said its net income climbed by more than three-folds to P119 million from April to June, bringing first-half profits to P157 million or more than double than what the company reported in the same period last year.
Revenues during the six-month period likewise grew by 5.4% to P615 million despite a flat second-quarter performance of P355 million.
The property developer said the higher profits came from the sales of its lots at the Verandas of Saratoga Hills residential division in Tagaytay Highlands, its flagship project.
"Future revenues of the company will come from other projects like Lakeside Fairways and Fairfield, a project adjacent to the Verandas at Saratoga Hills which will be launched in the second half of the year," Belle Corp. said.
Aside from residential sales, Belle Corp. said contribution of its associated companies-Highlands Prime, Inc., and Pacific Online Systems Corp. — likewise went up by two-thirds to P65.1 million during the first half as investors’ sentiments slowly improved.
Property analysts earlier said residential sales across all sectors are starting to pick up during the second quarter after the global economic slowdown did not turn out to be worst than what investors have first expected.
Projects of Belle Corp. are also benefiting from investors’ improved sentiment because most of its real estate developments cater to a niche market.
Belle Corp.’s developments are located mostly in Tagaytay City and Batangas province. Among its major stockholders include the Sy family.
For the rest of the year, the company will launch Fairfield, a seven-hectare project which will have 100 to 120 lots with an average size of 400 square meter (sq.m.), and will be sold at P7,000 per sq.m. The contemporary suburban American style home-inspired project is expected to break ground this year and will be turned over in 2011.
The company also said earlier that it will double its budget this year and plans to spend around P700 million to P800 million, increasing this further to P800 million to P900 million next year as demand remains strong.
Shares in the company were unchanged yesterday at P1.14 apiece. — Kristine Jane R. Liu
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