PHILIPPINE REAL ESTATE and RELATED NEWS in and around the country . . .
.
.

Realtors post mixed Q1 results

Posted on May 18, 2011 09:56:06 PM [ BusinessWorld Online ]
THE FIRST quarter has seen a mixed bag of results from property firms with three reporting a profit hike yesterday while two others recorded a decline in net income.
THREE property firms yesterday posted profit hikes while two others reported a decline in income and even a net loss for the first quarter compared with year-ago levels. -- Jonathan L. Cellona
Anchor Land Holdings, Inc., which claims a niche in the Chinese-Filipino community, along with commercial estate developer Shang Properties, Inc. and mass-market realtor Sta. Lucia Land, Inc. posted increases for January to March from year-ago levels on the back of improved sales of residential units and rental income.
But two firms attached to Philippine giants -- San Miguel Properties, Inc. and the Sy family’s Highlands Prime, Inc. -- respectively reported an income decline and net loss for the same period.
For Anchor Land, it was increased sales from projects nearing completion that boosted income. Revenues surged by 31% to P719.98 million in the first quarter.
“The growth in consolidated revenues was brought by the increase in the recognition of the percentage of completion of ongoing projects, increase in the number of units sold as a result of new projects, and Wharton Parksuites and Anchor Skysuites being launched and sold,” Anchor Land said in its financial report.
This offset a 20% climb in costs and expenses to P454.61 million from P378.25 million in the previous year. Expenses had increased due to the “continuous expansion of the residential condominium projects of the group.”
Anchor Land, which boasts of luxury condominiums in Binondo, Manila, expects to record P3 billion in revenues this year.
Shang Properties
Shang Properties, for its part, reported that profits rose by roughly a tenth to P200.22 million from P182.72 million year on year.
The company attributed the growth to “increase in rental revenue from Shangri-La Plaza by P12.8 million due to rental escalations and sustained growth on sales of tenants on percentage rental structure.”
It also noted that “rental revenue from Edsa Shangri-La Hotel increased by P1.1 million or 5.7% due to improved occupancy.”
This was aided by a 5.37% decline in expenses to P322.2 million.
Sta. Lucia Land
Sta Lucia Land similarly posted a hike in profits.
“The company reflected a net income of P199 million as of March 31, a 589% increase from the same period of last year, which amounted to P28 million,” Sta Lucia Land said in its financial report.
“The increase was due to the continuous growth of the company’s sale of projects,” it added.
Revenues jumped by 28% to P358 million while costs and expenses for the first quarter dropped by 4% to P244 million.
“This slight decrease was due to the adjustment in the cost of various projects and managed cost in both operational and administrative expenses,” Sta. Lucia Land said in its report.
Early in March, Sta. Lucia Land announced a five-year, P11-billion investment for new housing and commercial projects to take advantage of high market demand.
Two property firms, in contrast, reported a weakening for the first quarter.
San Miguel Properties
San Miguel Properties ended the first quarter with P48 million net income, or 17% lower than the same period in 2010.
“The decline is mainly attributable to lower sales revenue recognized for the period and increase in operating expenses to promote its future projects,” the company said in its financial report.
Revenues declined by 13% to P103.93 million from P119.77 million in the previous year.
Cost of rental and sales dropped by 30% to P26.29 million while operating expenses surged by 26% to P48.63 million.
The increase was “due to higher consultancy and legal expenses to support its aggressive re-branding initiatives to promote pipeline projects,” San Miguel Properties said.
Highlands Prime
Highlands Prime, Inc. did worse, posting a P21.97-million net loss in the first quarter from P7.08 million in profits last year due to weaker sales.
Revenues were more than halved to P74.92 million from P157.32 million while costs and expenses slipped by 27% to P107.59 million. -- Neil Jerome C. Morales
______________________________________________________________

real estate central philippines
Copyright ©2008-2017