MANILA, Philippines - Eton Properties
Philippines Inc., the real estate arm of the Lucio Tan Group of Companies,
posted first semester earnings of P31 million on revenues of P995 million.
In a financial report filed with the
Securities and Exchange Commission (SEC), Eton said its first half revenues
fell 60 percent from P2.56 billion in the same period last year partly due to
non-recognition of sales of projects that have yet to commence construction.
The company uses the percentage-of-completion method in recognizing residential
project revenues.
While construction of Eton’s ongoing
residential and commercial projects continued full-blast in the first half,
construction activities in Aurora Heights Residences, First Homes Makati and
West Wing Villas were moved back to give way to design improvements and
enhancements.
Despite construction delays, however,
the company said it still expects to post a net income of about P300 million
this year.
“We moved back construction timetables
of some projects for much-needed design improvements. These range from road
widths to building façade. The enhancements would definitely add value to these
projects in terms of quality and functionality. This is no different from what
we did in 2007 for The Eton Residences Greenbelt, when we commissioned a Hong
Kong-based architectural firm, Palmer and Turner, to redesign the building
facade. This was done even when we have already fully-sold the project,” said
Michael Tan, officer-in-charge of Eton.
Tan said he expects the recognition of
income for these projects once construction begins. For the fully-sold West
Wing Villas, construction is expected to start in September this year and the
first quarter of 2013 for high-rises First Homes Makati and Aurora Heights
Residences. First Homes Makati is a 34-story condominium project along Pasong
Tamo, Makati, just steps away from Ayala Ave.
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