Global-Estate Resorts swings to profit on improved sales

Posted on January 31, 2012 09:06:00 PM [ BusinessWorld Online ]

LEISURE DEVELOPMENT firm Global-Estate Resorts, Inc. (GERI) swung to profit for the fiscal year ending September 2011 versus year-ago levels due to lower operating costs and higher total revenues for the period, a filing with the Philippine Stock Exchange yesterday showed.

Global-Estate Resorts booked a profit of P19.2 million for 2011, turning around a net loss of P153.3 million notched in 2010.

Consolidated total revenues -- comprised of real estate sales, rental income, service income, and other income -- rose by 12% to P867.50 million from P776.26 million, year-on-year.

A bulk of the company’s revenues were derived from realized gross profit on prior years’ real estate sales, which surged by nearly nine times to P38.99 million last year from only P3.95 million two years ago, the disclosure read.

Global-Estate Resorts’ registered sales came from condominium units in Quezon City; residential lots in Lipa, Batangas; San Pablo, Laguna; Naga City; Iloilo City, and commercial lots in Carmona, Cavite.

Performance was also lifted by income realized from the assignment of development rights, which totaled P153.867 million.

Total expenses, meanwhile, shrank by 16% to P802.54 million in 2011 from P957.06 million in 2010, mainly due to a decline in finance costs and operating expenses, even as real estate costs grew by 10.08% to P142.74 million versus P129.29 million the year before.

“The Group’s stable financial position has improved further with the Php5.0 billion subscription by Alliance Global Group, Inc.,” the report stated further.

“Cash and cash equivalents increased by 2,078% to Php1.78 billion as a result of the subscription received...” it stated.

Back in December 2010, the resort developer had signed a subscription agreement with Alliance Global, paving the way for the investor to subscribe to 5 billion common shares at a subscription price of P1 per share or a total of P5 billion.

This was approved by the Securities and Exchange Commission two weeks ago.

GERI, formerly Fil-Estate Land, Inc. was incorporated in 1994 to consolidate the real estate interests of the Fil-Estate Group of Companies.

Its subsidiaries include Megaworld Global-Estate, Inc. and Fiel Estate Realty Corp., among others.

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Tan-led property firm posts profit of P19.4M

    Published : Wednesday, February 01, 2012 00:00 [ manilatimes.net ]

    Written by : KRISTA ANGELA M. MONTEALEGRE

GLOBAL-ESTATE Resorts Inc. (GERI) swung to profitability in its fiscal year 2011 on higher revenues and lower financing costs.

In a regulatory filing, the tourism vehicle of Andrew Tan-led Alliance Global Group Inc. (AGI) said that it posted a consolidated net income of P19.4 million in its fiscal year ending September last year, a turnaround from the previous year’s net loss of P153.3 million.

The company’s consolidated total revenues increased by 12 percent to P867.5 million from P776.3 million. Real estate sales from residential subdivision lots and condominium units amounted to P326.0 million, down 15 percent from P381.8 million. GERI recognized an income of P153.87 million from the assignment of development rights following agreements with related parties. Realized gross profit on prior year’s real estate sales surged 888 percent to P38.99 million.

Cost and expenses decreased by 16 percent from P957.1 million in 2010 to P802.5 million, mainly because of lower finance cost and operating expenses. In January 2011, AGI completed the acquisition of almost 60 percent interest in GERI, formerly Fil-Estate Land, Inc. The property company used the P5 billion in proceeds to wipe out its debt, whose interest expense became a major drag to the firm’s earnings in the past.

GERI, which has more than 1,000 hectares of properties located in key tourist spots outside Metro Manila, is developing the P15-billion Boracay Newcoast and the P5-billion Twin Lakes near Tagaytay. The firm is set to roll out this year another tourism estate project located on a 200-hectare property in Nasugbu, Batangas.

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Century Properties reports higher 10-month net income

Posted on January 30, 2012 10:18:24 PM [ Businessworld Online ]

NEWLY-LISTED real estate developer Century Properties Group, Inc. hiked its net income by nearly four times for the 10-month period last year versus year-ago levels due to a surge in total company revenues, a filing with the Philippine Stock Exchange (PSE) showed yesterday.

The company, which was listed on the local bourse in the fourth quarter last year, increased its net income -- attributable to the company’s equity holders -- to P779.65 million in the January to October period last year, 399% higher than the P156.66 million booked by the end of October 2010.

The surge was fueled by significant growth in real estate sales, which rose by 86.13% to P3.22 billion, as well as in interest and other income, which increased more than six times to P637 million, Century Properties’ latest financial statement showed.

The company’s total revenues nearly doubled to P4.02 billion from P2.09 billion year-on-year, while costs and expenses grew by 59.67% to P2.89 billion from P1.81 billion two years ago.

Century Properties is a high-rise developer with more than 40 projects in its total portfolio as of last year, having already completed a total of over 22 buildings and 720 homes.

At present, Century Properties is developing four projects: Century City in Makati City, Azure Urban Resort Residences in Parañaque City, Acqua Private Residences in Mandaluyong City, and Canyon Ranch in Cavite.

The company was listed on the PSE by way of backdoor listing -- also known as a “reverse merger” -- via dormant energy firm East Asia Power Resources Corp. last November. Its equity framework was later restructured to reflect its new business.

Last year, Century Properties was deemed the country’s fastest-growing developer, with high-profile celebrity endorsements contributing to the company’s market share growth, according to a study by property consultancy Colliers International.

The company is one of 41 publicly-listed firms who failed to meet the PSE’s minimum public float requirement of 10% on Nov. 30 last year.

Century Properties currently has a public float of 6.4%, PSE data showed.

Earlier, the board of directors of Century Properties approved the creation of a cash dividend policy amounting approximately to 10% of the company’s consolidated net income from the previous fiscal year, subject to pertinent regulations. -- FJGDLF

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Court extends TRO for John Hay developer

01/31/2012 [ tribune.net.ph ]

A Baguio City regional trial court has ruled to extend a temporary restraining order it earlier issued to 17 days stopping the government from taking over the establishments and facilities of the developer of Camp John Hay.

In a two-page order dated January 27, Presiding Judge Mona Lisa Tiongson-Tabora of Baguio City RTC, Branch 7, granted the appeal of Camp John Hay Development Corporation (CJHDevCo) through lawyer Gilbert Raymund Reyes for the extension of the 72-hour TRO issued by Executive Judge Iluminada Cabato on Jan. 24, 2012 for 17 days starting on Jan. 28 against the Bases Conversion and Development Authority (BCDA).

“The Court finds that great and possibly irreparable injury might be suffered by the petitioner if the 72-hour TRO, which expires on Friday, is not extended. Wherefore, as prayed for by the petitioner, the 72-hour TRO issued by Executive Judge Iluminada Cabato on Jan. 24, 2012 is hereby extended for seventeen (17) days starting . . . Jan. 28, 2012,” the judge ordered.

The regional trial court restrained the BCDA from forcible occupation or ejectment of CJHDevCo from itsmanagement of Camp John Hay Golf Club, the Manor Hotel, the Camp John Hay Suites Hotel, its administrative offices, as well as key utilities and facilities, including its water source.

It also enjoined the government agency from taking over the leased property or award of rights in the leased property to a new entity or developer.

“The respondent Bases Conversion Development Authority, its subsidiaries, officials, employees, agents or any other person/entity acting for or in its behalf, are hereby ordered to restrain or desist from committing any act tending to wrest control and/or possession of the property subject of this case or any part thereof including all improvements found therein, from petitioner Camp John Hay Development Corporation and/or persons claiming rights to the leased property or portions thereof from said petitioner, including any act of forcible entry or forceful occupation and/or ejectment of said petitioner or its authorized representatives and/or any award of rights in the subject property to a new entity,” Tabora said.

The lower court has set the CJHDevCo case for hearing on the application for a preliminary injunction on Feb. 6, 2012 at 9:30 a.m.

BCDA did not sent its lawyer to appear before the Court’s summary hearing of the case on Friday despite due notice.

Earlier, CJHDevCo filed a complaint for mandamus seeking to compel the BCDA to comply with its contractual obligations as stipulated under the 2008 “Restructuring Memorandum of Agreement (RMOA), particularly the setting up of the so-called “One-Stop Action Center,” an effective mechanism that would facilitate development of the John Hay Special Economic Zone (JHSEZ).

Last Jan. 11, the CJHDevCo also formally sought for arbitration against BCDA seeking to confirm the validity of its decision to rescind on Jan. 9, 2012 its 2008 “Restructuring Memorandum of Agreement (RMOA) due to BCDA’s alleged “failures and breaches,” including the agency’s non-compliance of its obligation to immediately set up theso-called “One-Stop Action Center.”

In a 42-page complaint filed with the Philippine Dispute Resolution Center, Inc., CJHDevCo also asked the Arbitral Tribunal that in the event that amendment of the RMOA is no longer possible, it should order the original lease agreement between CJHDevCo and BCDA as “deemed rescinded,” and directed the agency to pay the John Hay developer actual damages amounting to P14.44 billion and the cost of the suit in the amount of P15 million.

The complaint for arbitration case was filed after CJHDevCo rescinded the RMOA due to BCDA’s continued failure to fulfil its contract.

RMOA refers to the compromise settlement entered into by the BCDA and CJH DevCo on July 1, 2008, where the latter agreed to several substantial concessions, including the assumption of “prior rental obligations” amounting to more than P2.69 billion and current rental of P150 million. In consideration thereof, the BCDA has been mandated to establish an effective mechanism that would facilitate CJH DevCo’s development of the John Hay Special Economic Zone (JHSEZ), particularly the setting up of the OSAC, and enable it to meet these massive financial obligations.

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Vista Land readies P32-B housing plans

Posted on January 29, 2012 10:23:36 PM [ Businessworld Online ]

PROPERTY DEVELOPER Vista Land & Lifescapes, Inc. plans to launch 32 residential subdivision developments worth P32 billion this year in a bid to serve robust demand from overseas Filipino workers (OFWs).

 “OFWs continue to be Vista Land’s strongest market and we intend to further cement our reputation as the runaway leader in this segment,” said Manuel Paolo A. Villar, Vista Land president and chief executive officer, in a statement released over the weekend.

This year, Vista Land will be opening subdivisions in 12 new areas nationwide.

OFWs from Europe, Middle East, and Asia account for more than half of the firm’s reservation sales, while 5-10% is taken up by Filipinos based in the United States, Mr. Villar noted.

Further, the firm will also expand 20 existing developments in light of the brisk sales of earlier-launched house and lot packages.

“Demand for our house and lot packages is very strong since studies have shown the Vista Land brands remain the most preferred by home buyers. Thus, we are strengthening our presence in existing areas while expanding our reach further by entering new markets,” Mr. Villar said.

Vista Land was able to meet its sales target for new and expansion areas last year, according to Ricardo B. Tan, Jr., Vista Land chief financial officer in the same press statement.

Vista Land had earlier aimed to hit P24 billion in full-year sales for 2011, earlier reports showed.

The company currently operates five property brands: Brittany that sells house-and-lot units for as much as P9 million each, Crown Asia for units worth P3.5 million to P9 million, Camella Homes for units P3.5 million and below, Communities Philippines that sells Camella Homes projects in the provinces, and condominium arm Vista Residences.

Last year, the firm launched 23 projects valued at P21 billion, eight of which were new locations.

Vista Land, owned by the family of Senator Manuel B. Villar, Jr., has so far delivered about 200,000 units to buyers since 1977, according to the company’s Web site.

The property developer hiked its nine-month net income last year by 20% to P2.16 billion from P2.06 billion in 2010 on the back of record sales and completion rates from its affordable housing segment Camella Homes.

Real estate revenues jumped 21% to P9.90 billion, while total cost and expenses for the January to September period last year grew by 22.20% to P7.840 billion.

Vista Land shares closed unchanged on Friday at P3.04 each. -- Franz Jonathan G. de la Fuente

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