PROPERTY developers generated mostly higher earnings in the second quarter of 2019 due to strong sales and leasing revenues, as well as lower project costs.
Sta. Lucia Land, Inc. (SLI) saw its net income jump 225% to P545.27 million in the second quarter, following a 105% increase in revenues to P2.23 billion.
This brought SLI’s net income 104% higher to P883.74 million in the first half, while revenues grew 70% to P3.35 billion. Real estate sales alone surged by 98%.
“Remarkable sales take up of projects launched during the year, boosted efforts in increasing the real estate sales and extensive expansion had increased the recognized sales during the period,” the company said.
Rental income, meanwhile, slipped 7% as SLI re-evaluated its lease rates in order to be more competitive with neighboring malls.
SLI develops mostly horizontal projects in provinces across the country, including a 97-hectare masterplanned community in Davao City called Las Colinas Verdes.
Meanwhile, Rockwell Land Corp. booked a 15% increase in its attributable profit to P563 million for the April to June period, even as revenues slipped 27% to P3.44 billion, according to a regulatory filing.
On a six-month basis, the listed firm’s net income attributable to the parent rose 26% to P1.28 billion, while revenues dropped 14% to P6.93 billion.
The Lopez-led company said the dip in revenues was mainly due to the lower construction accomplishment of luxury residential condominiums Proscenium in Makati and The Vantage in Pasig. It also recognized lower sales in The Grove in Pasig, resulting to a 23% decline in the sale of condominium units.
Rockwell’s leasing portfolio helped offset the weakness of its residential segment, as higher occupancy rates in Power Plant Mall Expansion, RBC Sheridan, and Santolan Town Plaza led to a 27% increase in commercial development revenues to P1.18 billion.
Luxury condominium developer Anchor Land Holdings, Inc. (ALHI) posted a 43% increase in net income attributable to the parent to P182.32 million. Revenues were also up 10% to P1.42 billion.
For the first half, ALHI’s attributable profit went up 34% to P310.45 million, after a 20% uptick in revenues to P3.04 billion.
Real estate sales rose 13% as the company saw more sales and higher construction rates for its projects such as Admiral Baysuites, Admiral Grandsuites, Anchor Grandsuites, Anchor Skysuites, and Copeton Baysuites, among others. Most of the company’s projects are located in the Bay Area and Binondo in Manila.
ALHI also benefited from the expansion of its rental operations through commercial units and warehousing facilities. Rental income then climbed 27%.
Most listed property firms delivered higher results in the second quarter, driven by continued demand from both end-users and investors.
For instance, Ayala Land, Inc.’s attributable profit was up 10.4% to P7.8 billion for the quarter; SM Prime Holdings, Inc.’s attributable net income grew 16% to P10.5 billion; while Robinsons Land Corp. posted a 22% increase to P2.17 billion. — Arra B. Francia