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Property developers bare mixed results

Posted on November 14, 2012 10:58:40 PM [ BusinessWorld Online ]

TWO Andrew L. Tan-controlled developers -- Megaworld Corp. and Empire East Land Holdings, Inc. -- reported mixed net income results for the third quarter despite booking higher revenues, the companies said in separate disclosures yesterday.

Net income of Megaworld went up 29.87% to P2 billion in the third quarter from P1.54 billion in the same three months last year, as revenues -- mostly real estate sales and rental income -- increased 16.78% to P8.42 billion from P7.21 billion, and costs and expenses grew by a slower 13.05% to P6.41 billion from P5.67 billion.

But the company saw a smaller net income as of September -- P5.7 billion, or 14.93% down from P6.70 billion in the same nine months last year.

Revenues rose by 3.88% to P23.85 billion from P22.96 billion, while costs and expenses climbed by a bigger 11.75% to P18.16 billion from P16.25 billion.

“Among product portfolios, the bulk of generated consolidated revenues was derived from the sale of condominium units and residential lots amounting to P14.61 billion in 2012 compared to P13.03 billion in 2011, an increase of 12.11%,” Megaworld said of its nine-month performance.

Megaworld, incorporated in 1989 as Megaworld Properties and Holdings, Inc., is currently engaged in the development of large-scale, mixed-use master planned townships for the middle-income market segment.

In comparison, Empire East recorded a third-quarter net income of P28.84 million that was barely changed from P29 million the previous year.

Third-quarter revenues -- mostly from real estate sales, commissions, and other income -- gained 24.13% to P577.07 million from P464.88 million, but costs and expenses rose by a faster 25.8% to P548.224 million from P435.871 million.

As of end-September, Megaworld held a 61.75% stake in Empire East, according to the latter’s end-September public ownership report.

“Sales generated were derived from various projects including, California Gardens Square, Greenhills Garden Square, Pioneer Woodlands, The Cambridge Village, San Lorenzo Place, Laguna Bel Air Projects and The Sonoma,” Empire East noted.

Still, Empire East saw its net income rise 7.5% to P89.30 million as of September from P83.07 million in the same nine months last year. In the same comparative periods, revenues expanded by 21.83% to P1.73 billion from P1.42 billion, while costs and expenses went up 22.39% to P1.64 billion from P1.34 billion.

Empire East, a former division of Megaworld Corp., was incorporated in 1994 and was formerly known as Megaworld’s Community Housing Division.

Yesterday, shares of Megaworld fell by 0.79% or two centavos to P2.50 apiece from P2.52 last Tuesday, while those of Empire East plunged by 2.09% or two centavos to 94 centavos from 96 centavos. -- Franz Jonathan G. de la Fuente         

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