CEBU Holdings, Inc. reported a 13.8% increase in net income attributable to equity holders of the parent firm to P857.11 million in 2018 from P753.45 million a year earlier as the property company reported a strong growth in revenues.
In its annual report submitted to the stock exchange, the company said it had maintained favorable revenue growth at 20.4% to P3.72 billion from P3.09 billion in 2017. Net income reached P970.03 million, higher by 19.3% from P813 million previously.
“The bulk of the increase in revenues was primarily contributed by sale of commercial lots at Seagrove Estate, higher leasing income from office buildings, higher interest [and] other income and equity in net earnings from affiliates. The company’s other revenue contributors include leasing income from the mall, sale of residential lots at Amara, and sale of condominium units [and] club shares,” the company said.
Cebu Holdings, a 70.43%-owned subsidiary of Ayala Land, Inc., is engaged in subleasing of commercial spaces, food courts and entertainment facilities through subsidiary Cebu Leisure Co., Inc.
Cebu Leisure’s total revenue of P192.1 million was 4% lower than the same period in 2017 while net operating income stood at P64 million, the firm said.
Cebu Holdings’s operations consist of six types of activities, including strategic land management, mixed-use development, real estate business, commercial business operations and management, hotel development and operations, and proprietary sports club shares sales.
The holding firm owns and manages the Cebu Business Park, a 50-hectare business and commercial subdivision in Cebu City. The business park is the single largest operating IT economic zone in southern Philippines.
Cebu Business Park has 40 buildings in it, and has 10 ongoing constructions. Locators include Ayala Center Cebu, the shopping and lifestyle destination of the region.
The firm said Ayala Center Cebu recorded total revenue of P1.30 billion, 4% lower compared with the same period last year. It posted a net operating income of P 571 million.
The center’s overall gross sales performance of P7.6 billion for the period was 32% lower than the earlier year. It ended the fourth quarter with an occupancy of 96% and a lease out rate of 98%.
“The mall closed for twelve days due to the fire incident at Metro Gaisano last January 05, 2018 which resulted to the decrease in sales,” it said.
On Wednesday, shares in the company were up 2.52% at P6.50 each. — Victor V. Saulon
