Posted on 10:12 PM, May 20, 2010 [ BusinessWorld Online ]
LUCIO C. TAN-led real estate firm Eton Properties Philippines, Inc. projects robust growth this year, with profits expected to rise by more than double to P700 million.
First-quarter net income of P185 million -- more than 10 times the P18-million profit in the previous year -- is an indication of the bullish property sector, the company said in a statement.
In the first quarter, Eton Properties said “revenues amounted to P974 million, an increase of 277% over the P352 million generated during the first quarter of 2009.”
Higher revenues were attributed to the ongoing construction of residential projects like Eton Residences Greenbelt, Eton Baypark Manila, One Archers Place, South Lake Village at Eton City, The Manors at North Belton Communities, Eton Parkview Greenbelt, Belton Place and the Eton Emerald Lofts.
Leasing income came from newly opened commercial centers and office projects like Centris Station and Cyberpod Centris in Quezon City and Cyberpod Corinthian in Ortigas.
Assets of the three-year-old real estate firm also grew by 344% to P11.7 billion, from P3.4 billion last year.
“We have reasons to be bullish in 2010. Growth will be driven by the strong results of the real estate business, boosted by the country’s successful first automated national elections,” Danilo E. Ignacio, president of Eton Properties, said in the statement.
For instance, total reservation sales in January to April rose by 98% year on year. “With the relatively peaceful elections over, we foresee that this boom will continue and strong numbers will keep pouring in,” he added.
Eton Properties will launch a total of 10 new projects this year, two of which were already launched early in the year. Eton Properties has launched a total of 29 projects -- residential, commercial, office projects and township developments -- in its first three years of operations.
Shares in Eton Properties, which turned around to a P294-million profit last year from a P130.7-million net loss in 2008, rose to P3.15 each yesterday from P3.10 on Wednesday. -- Neil Jerome C. Morales