BY ALBERT CASTRO
[ Malaya.com.ph ] June 7, 2010
Philippine Realty Corp. (PhilRealty) over the weekend said it posted a P7.17 million loss last year, from an income of P98.43 million the previous year, mainly due to higher construction cost.
But the company said it has resumed projects which were sideline by the 2007 crisis, particularly the construction of Skyline Tower in the Andrea North Project in New Manila in Quezon City.
The company said the loss reported was "due to increase in construction cost."
Consolidated revenues reached P366.62 million, up from P307.86 million the previous year, as the company started recognizing contribution from partner Xcell Property Ventures Inc., (Xcell) for the construction of the Andrea Tower, sale of assets and contribution from other businesses.
PhilRealty has interest in insurance through brokerage firm Tektite Insurance Brokers and non-life underwriter Meridian Assurance Corp.; travel and tours through Universal Travel Corp.; and property through PHRC Property Managers Inc. for local business and Alexandra (USA) Inc. for a Florida development.
PhilRealty said Meridian Assurance posted a profit of P3.07 million, down 20 percent from P3.83 million the previous year. Tektite Insurance Brokers, In., posted a P997,000 profit, 76 percent higher than the previous year’s P565,000.
PRHC Property posted a profit of P2.3 million, a turnaround from the P1.11 million loss the previous year.
PhilRealty has been under corporate rehabilitation program since June 2004, after the court approved its application.
Since then, it has reduced its bank debt to P227 million from P2.2 billion in 2002
Further asset sale is contemplated to reduce debts.
"In the medium term, the Company will not have the means to pursue its various high-rise real estate projects. Its strategy is to enter into joint ventures whereby it will merely contribute the land and other pre-development expenditures while the partner will shoulder the cost of construction of the building," the company said.