ARANETA Properties, Inc. swung to a net loss in the third quarter.
The listed land and property developer posted a net loss of P99,475 in the July to September period, from a P4.54-million net income recorded in the same period last year.
Revenues went down 30% to P13.11 million during the three-month period, reflecting the 32% reduction in the net income of its joint venture company to P16.81 million and the 36% decline in its sales to P3.7 million.
“This performance is directly attributed to marketing strategies implemented in Year 2014, specifically the holding on of some inventory for a much better price,” the company said in a regulatory filing.
Araneta Properties said this marketing strategy was supposed to “create a favorable momentum for the company’s operation activities while awaiting for the right timing on the implementation of sales forecast.”
In the first nine months of the year, Araneta Properties posted a net loss of P26.06 million, from last year’s net income of P19.85 million.
Year-to-date revenues went down 42% to P20.69 million, as the net income from its joint venture company went down 43% to P27.59 million and sales was cut 44% to P6.9 million.
Despite the results, Araneta Properties said its quarterly operation was “thriving in all business aspects.”
“This includes the real estate aspect as there were reputable real estate companies that already started development and marketing operations in San Jose Del Monte Bulacan,” it said.
“More so, the recent ground-breaking government projects, specifically the (Metro Rail Transit Line 7)…created a positive scenario in the real estate business that eventually benefited the Company’s land banking activity…and holding on of some inventory for a much better price,” it added.
The company said its revenues included the sales from its joint venture project with Sta. Lucia Realty & Development, Inc.
Araneta Properties reported a land bank of 3.5 million square meters worth P1.26 billion as of end-September. — Denise A. Valdez
