[ manilastandardtoday.com ]
Eton Properties Philippines Inc., the
real estate unit of the Lucio Tan Group of Companies, expects net income to
decline 60 percent this year to P300 million from P733 million in 2011 due to
construction delays.
Eton said in a statement profit in the
first six months of the year reached P31 million, down sharply from P418
million year-on-year while revenues slid 60 percent to P995 million from P2.5
billion a year ago.
The company partly attributed the
lower profit to the non-recognition of sales of projects that had not started
construction. The company uses the percentage-of-completion method in
recognizing residential project revenues.
Construction of Eton’s ongoing
residential and commercial projects continued full-blast in the first half, but
development of Aurora Heights Residences, First Homes Makati and West Wing
Villas was moved back to give way to design improvements and enhancements.
“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,” Michael Tan, officer-in-charge
of Eton Properties, said.
Tan said he expects the recognition of
income from these projects once construction begins.
Construction on the fully-sold West
Wing Villas is expected to start in September this year while that of high-rises
First Homes Makati and Aurora Heights Residences is expected in the first
quarter of 2013.
First Homes Makati is a 34-story
condominium project along Pasong Tamo, Makati, just steps away from Ayala
Avenue.
The company recently launched Hanna
Manor, the 11th cluster of The Manors at North Belton Communities in Quezon
City, an enclave featuring 14 clusters of five-story mid-rise buildings.
Eton also plans to launch within the
year a Quezon City project featuring mid-rise and high-rise structures, a residential
condominium for the upper class market in Makati and the second tower of First
Homes Makati.
Eton Properties has launched 45
projects since the company started operations five years ago. Its portfolio of
launched and
completed projects includes
residential, commercial, office projects and township developments.
Trading of Eton Properties’ shares is
currently suspended because of the non-submission of reportorial requirements
to the Philippine Stock Exchange.
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