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Anchor Land profits grow by 40% in the third quarter

Posted on November 28, 2011 10:14:42 PM [ BusinessWorld Online ]

REAL ESTATE firm Anchor Land Holdings, Inc. saw its net income rise by 40% in the third quarter from a year ago as lower expenses offset a flattening in real estate sales.

The developer, which claims a niche in the Filipino-Chinese market, posted a third-quarter net income of P210.83 million from P150.64 million a year ago.

Revenues were flat at P919.06 million versus P925.15 million last year due to slightly lower real estate sales.

Cost and expenses for the July-to-September period, meanwhile, fell by 18.94% to P642.49 million versus P792.51 million in the same period last year. This was attributed to savings from construction costs and higher profit margins of existing projects.

“We are glad to report that Anchor Land and its subsidiaries continue to perform remarkably well, sustaining our upward earnings trajectory and putting us on path to another profitable year in 2011,” said Anchor Land Chairman Stephen Lee in a press statement released yesterday.

This brought Anchor Land’s nine-month net income to P560.94 million, 40% higher than the P401.14 million booked in the same period last year.

Revenues rose by 4.55% to P2.138 billion from P2.045 billion year on year, while costs and expenses declined by 12.42% to P1.411 million versus P1.611 million in year-ago levels.

The company’s major revenue source for the period was SoleMare Parksuites at the ASEANA Business Park in ParaƱaque City, the first residential development in the area. Additionally, revenues were also derived from Anchor Land’s commercial properties, namely One Shopping Center Mall in Baclaran, ParaƱaque City, and Mandarin Square in Binondo, Manila.

The first phase of Solemare Parksuites is nearly completed and will be ready for turnover this quarter, while the construction of its second phase is currently ongoing, with sales reportedly being robust, Anchor Land said. The company is also eyeing a third phase for Solemare, having acquired nearly two hectares of property at the business park for the said purpose.

Meanwhile, 39-storey Wharton Parksuites and 56-storey Anchor Skysuites -- the tallest in the area -- are currently being built in Manila’s Chinatown district, with a 60% and 26% respective completion percentages to date, the company said.

Two Shopping Center, another commercial project of the Anchor Land in Pasay City, is 93% completed as of end-September.

The company has also started constructing the 53-storey Admiral Baysuites along Roxas Boulevard. It will serve as the luxury residential component of the Admiral Hotel, currently being redeveloped by Anchor Land into a European-inspired boutique hotel.

Anchor Land, first incorporated in 2004, is the holding group of Anchor Group and is engaged in real estate development and marketing with a focus on high-end residential condominiums in Manila.

Anchor Land shares were last traded unchanged at P18.50 apiece on Nov. 24.

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