Published on Thursday, 23 May 2013 00:00
Written by ALBERT CASTRO
Malaya
Business News Online - Philippine Business News | Online News Philippines
Despite the
encouraging first quarter results reported by property developers listed with
the Philippine Stock Exchange, a second look appears to show mixed performance,
according to brokerage firm Colfinancial.com.
As of
end-March seven companies have reported a combined P11.5 billion, up 8.59
percent from last year’s P10.59billion.
Their
combined revenues stood at P50.98 billion, up 19.31 percent from last year’s
P42.73 billion.
Leading the
pack in terms of profit is mall developer, SM Prime Holdings, Inc., which
reported a P2.79 billion profit for the period, followed by Ayala Land which
reported its profit at P2.76 billion, and Andrew Tan-led Megaworld Corp., at
third with its P1.82 billion profit for the period.
SM Prime is setting aside P88 billion in
capital expenditures for the next three years to continuously increase in
portfolio of malls both in the country and in China.
Colfinancial.com
in a research note said that SM Prime’s profit grew in line with expectation as
the lower than expected growth in revenues was offset by lower interest expence
and lower tax rate.
SM Prime
reported a consolidated revenues of P7.83 billion, up 11 percent from last
year’s P7.03 billion.
Colfinancial.com
said SM Prime’s revenue growth lagged estimates, with the 11 percent growth
much slower than the market’s expectation of 12.5 percent.
“Growth (of
SM malls sales) in China and (in the) Philippines was slower than expected at
only 11 percent year on year. In our forecast, we assumed revenues would grow
by 12 percent for Philippines and 15 percent for China. Same-store-sales growth
in the Philippines was also slower at 7 percent compared to last year’s 8
percent,” it said.
Colfinancial.com,
however, said that while this may be “disappointing,” it is still too early to
tell if growth will lag estimates throughout the year.
Ayala Land
meanwhile reported a 30 percent in crease in its profit for the period at P2.76
Billion from P2.13 billion a year ago. This figure is already 27.3 percent of
the market’s full year income projection for Ayala Land.
“Growth and
outperformance were primarily driven by strong real estate revenues, with the
company booking P4.1 billion in commercial lot sales, more than four times the
P915 million worth of commercial lot sales booked last year,” noted
Citiseconline.com.
The brokerage
firm said Ayala Land’s property development revenues surged on the back of a 38
percent jump in revenues from commercial lot sales as the company started
selling lots from its recent land acquisition in FTI complex in Taguig.
“Management
said it will recognize more revenues from lot sales throughout the year. It
also said that it will open a few more lots for sale. As a result, the strong
growth in ALI’s commerical lot sales will most likely be sustained this year
and next year,” said Citiseconline.com.
Among the
companies tracked by Citiseconline.com, Ayala Land is the more diversified with
its operations expanding to tourism and other facets of property development.
Megaworld’s
reported profit meanwhile only account for less than a quarter of market
projections.
At P1.79
billion, this is 15 percent higher than last year’s P1.58 billion.
“Realized
gross profit was flattish, up by just 3.77 percent, but this was offset by a
46.85 percent year-on-year improvement in rental revenues,” noted
Citiseconline.com.
“Although
Megaworld’s income accounted for only 22.87 percent of our full-year forecast,
we believe that it still has the capability to meet our forecast given the volatility
of the company’s earnings on a quarterly basis. Last year Megaworld’s first
quarter income accounted for 21.3 percent of its fiscal year income,” said
Citiseconline.com.
Reservation
sales in Vista Land and Lifescape, Inc., meanwhile continues to reach new highs
which reinforces views that demand for house and lots “will remain robust
driven by strong end user demand and the existing huge housing backlog outside
Metro Manila,” noted Citiseconline.com.
Vista Land
profit was at P1.34 billion, up 29.5 percent from lastyer’s P1.04 billion. The
company’s gross reservation sales hit P11.8 billion, 16.1 percent higher year
on year, with the company targeting a quarterly take-up sales of P12 billion,
equivalent to P48 billion for the year.
Sales growing
faster than expenses, for the property developer whose consolidated revenues
reached P4.86 billion, 20.8 percent higher than last year’s P4.02 billion.
“Aside from
the booking of sales made in the previous quarters, earnings growth benefited
from economies of scale and cost control efforts, allowing Vista Land to book
higher margins,” the brokerage firm said.
Citiseconline.com
meanwhile said of Century Properties Group, Inc., that it is moving towards the
“second stage of growth,” where earnings and revenue growth are expected to
decelerate closer to the industry average.
“This is
quite evident with the 10 percent growth registered during period which is much
slower compared to the 100 percent growth experienced last year,” it said.
Century
Properties reported a profit of P501 million, 10 percent higher than last yer’s
P454 million. Consolidated revenues stood at P2.6 billion, 5 percent higher
than last year’s P2.5 billion.
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