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27 new PPP projects added to gov’t pipeline

A man is seen working on the rehabilitation of a portion of Commonwealth Avenue in Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN

TWENTY-SEVEN public-private partnership (PPP) projects, including the P77.22-billion Bataan Harbour City project, have been added to the government’s pipeline as of end-July, government data showed.

PPP Center data obtained by BusinessWorld showed that the 27 new projects have an estimated total cost of P114 billion.

This brought the total number of PPPs in the pipeline to 164 valued at P3.24 trillion as of end-July, it said.

The latest count included 20 solicited projects and seven unsolicited projects.

New additions to the list include two projects for the Bases Conversion and Development Authority and Clark International Airport Corp. — the Entertainment and Events Hub Package 1 (Convention Center, Sports Arena, Clark Airport Mall) valued at P21 billion, and Package 2 (Multi-modal Mobility Terminal) with an estimated cost of P4 billion. Both projects are currently at “under conceptualization” status. 

Also added to the list was the P1.26-billion Lung Center of the Philippines’ Medical Arts Building project.

Fourteen solicited PPP projects under Central Mindanao University (CMU) in Bukidnon were also included in the list. All projects are still “under conceptualization.”

These include a P930-million industrial park or agri-industry development project, a P120-million business promotion center project, and the rehabilitation and renovation of the CMU Market with an estimated cost of P38 million.

Other proposed PPP projects at CMU include four dormitory buildings, an agricultural experimental center and agronomy farm laboratory, and an animal production research and development center.

Data from the PPP Center also showed seven unsolicited PPPs undergoing negotiations and will be implemented by the Bataan local government unit (LGU).

These projects include the construction of the Bataan Harbour City (P77.22 billion), Bataan Emerging Gateways City (P4.94 billion), Bulk Water Supply System (P1.6 billion), Bataan Rooftop Microgrid Project (P274 million), Solar Rooftop Project (P43.5 million), Mariveles Dialysis Center (P39.5 million), and the Digitized Traffic System (P12 million).

DELISTED PROJECTS
On the other hand, four PPP projects were removed from the pipeline.

The Metro Manila Bike Share Project was delisted after the Department of Transportation’s (DoTr) confirmation on June 25.

The DoTr also requested the removal of the proposed PPP for the operations and maintenance of the Bicol International Airport.

The PPP Center also delisted the proposed redevelopment of the Pasig City Hall Complex due to a reported “failure of negotiation.”

The proposed establishment of a hemodialysis center at the Ospital ng Lungsod ng San Jose del Monte was also removed from the PPP’s list as requested by its LGU.

Meanwhile, the PPP updated the pipeline status of the P16.88-billion Tarlac-Pangasinan-La Union Expressway (TPLEX) Extension Project to “under implementation,” it said.

It also lowered the project cost of the rehabilitation, operation, maintenance and expansion of Puerto Princesa International Airport to P10.24 billion from P11.22 billion previously.

The PPP Center also updated the respective project costs of the San Mateo Railway Project (P77.6 billion), National Food Hub Project (P8.5 billion), Cavite Bus Rapid Transit System (P1.87 billion), and the Urban Renewal and Heritage Conservation project (P1.5 billion).

PPP Center data showed that 205 projects valued at P3.58 trillion are currently under implementation, while 56 have been concluded or terminated.

The government partners with the private sector in the form of PPPs to plug funding gaps in its different infrastructure and development needs. — Beatriz Marie D. Cruz

JG Summit sees 43% profit surge on margins, equity earnings, merger gains

GOKONGWEI-LED conglomerate JG Summit Holdings, Inc. saw a 43% increase in its first-half attributable net income to P14.8 billion from P10.38 billion a year ago, driven by margin improvements in core businesses, higher equity earnings from investments in Manila Electric Co. (Meralco), and gains from the merger between the Bank of the Philippine Islands (BPI) and Robinsons Bank.

First-half consolidated revenue rose by 15% to P187.8 billion from P163.4 billion last year on rising demand for tourism and recreation, along with increased petrochemical operations, as well as higher food and beverage sales volumes, JG Summit said in a statement to the stock exchange on Monday.

JG Summit doubled its core net income after taxes to P18.1 billion.

“We continue to post overall top line growth despite the lingering effects of inflation which dampened consumer sentiment. We have seen a divergence of results from our operating units with the strong demand for travel and leisure benefiting our air transport and real estate businesses,” JG Summit President and Chief Executive Officer Lance Y. Gokongwei said.

“Our food and beverage unit continues to deliver higher sales volumes, but product mix has changed into lower price point categories, while increased plant utilization in our petrochemicals unit pulled up revenues in the first half. Coupled with our initiatives to drive productivity and better operating leverage, we have now seen improvements in margins,” he added.

Mr. Gokongwei said the conglomerate is aiming to sustain momentum in the remaining months of the year.

“As we move to the second half, we hope to sustain this momentum with the expected decline in inflation that in turn could ignite the sequential rebound in consumer demand,” he said.

“We will continue to execute our commercial strategies to drive top line growth while implementing overall operational discipline to ensure we sustain the year-on-year recovery in core net income and margins,” he added.

The food segment, Universal Robina Corp., had a flat first-half net income at P6.6 billion on lower foreign exchange gains and higher impairment losses. Revenue rose by 3% to P80.7 billion as business units saw higher sales volumes.

Core profits grew by 5% to P6.3 billion as higher tax provisions watered down the improvement in operating profits. The food and beverage company recently decided to exit its business in China to redeploy its resources to higher-growth markets.

On the real estate and hotels business, Robinsons Land Corp. (RLC) saw a 9% increase in first-half net profit to P6.5 billion due to the increase in minority share in its real estate investment trust company, RL Commercial REIT, Inc., following a block placement in April.

Revenue rose by 8% to P20 billion as the rental incomes of the property developer’s malls, offices, hotels, and logistics outpaced the decline in the recognized revenues for the residential segment.

RLC’s malls division maintained its occupancy rate at 93%, while the offices business improved to an 86% occupancy rate with the expansion of existing business process outsourcing tenants.

The airline business led by Cebu Air, Inc. recorded a 5% drop in its first-half net income to P3.5 billion due to foreign exchange losses as well as the absence of the mark-to-market gains recognized last year on convertible bond derivatives. Cebu Air operates budget carrier Cebu Pacific.

Revenues grew by 18% to P51.4 billion while earnings before interest, taxes, depreciation, and amortization climbed by 39% to P13.3 billion as fuel prices were steady during the period.

“Cebu Air also solidified its domestic market leadership at 54% share, while international routes saw 32% more passengers in the first half compared to the previous year. These were accomplished through aircraft upgrades, additional routes, and increased flight frequencies,” JG Summit said.

The petrochemicals business led by JG Summit Olefins Corp. (JGSOC) posted a P7.4-billion net loss for the first half on higher financing costs and additional depreciation from the completed plant expansion project.

Revenue surged by 80% to P25.5 billion on increased plant operations and higher sales volumes across all products, as well as more targeted selling and more disciplined pricing.

“JGSOC continues to work on its business-wide transformation project, with initiatives already producing various wins such as higher premiums on booked volumes, continued strong sales momentum, more strategic spending on maintenance, and a reduction in spare part inventories,” JG Summit said.

JG Summit saw a mixed performance across its core investments.

The share of JG Summit in Meralco’s income rose by 26% to P5.8 billion led by higher sales volume on commercial activities and residential demand due to higher temperatures.

Equity earnings from Singapore Land Group grew by 15% to P1.3 billion as the hotel business posted a robust performance, led by the full operations of the Pan Pacific this year, along with increases in the company’s rental income.

Dividends received by JG Summit from PLDT Inc. for the first half declined by 22% to P1.1 billion on the lack of special dividends declared in 2023.

Following the effectivity of the merger between BPI and Robinsons Bank at the start of the year, JGS received its first cash dividends from BPI at P1.98 per share, totaling P373 million.

On Monday, JG Summit shares were unchanged at P25.20 per share. — Revin Mikhael D. Ochave

Utilities, toll roads boost MPIC’s profit to P12.5 billion

PANGILINAN-LED Metro Pacific Investments Corp. (MPIC) recorded a 23% increase in its first-half net income to P12.5 billion from P10.2 billion last year on higher contributions from its utilities and toll roads subsidiaries.

First-half operating revenue rose by 22% to P35.76 billion from P29.37 billion last year, MPIC Chief Financial, Risk, and Sustainability Officer Chaye A. Cabal-Revilla said in a media briefing on Monday.

MPIC’s first-half consolidated core net income rose to a new record high of P12.5 billion compared with P9.9 billion a year ago.

Among businesses, the power segment took up P10.1 billion of total net operating income, followed by the toll roads segment at P3.2 billion, and the water segment at P2.5 billion.

Better financial and operating results from MPIC’s holdings generated a 20% increase in contribution from operations to P14.8 billion, driven by strong growth in energy sales at Manila Electric Co. (Meralco), billed volumes at Maynilad Water Services, Inc., and traffic on the toll roads complemented by higher tariffs.

“Our power, toll roads, and water business continued to deliver double-digit growth in earnings on the back of strong volumes and the impact of long-overdue tariff adjustments,” MPIC Chairman, President, and Chief Executive Officer Manuel V. Pangilinan said in the briefing.

On the power segment, Meralco grew its first-half net income by 26% to P22.4 billion. Revenue increased by 6% to P237.5 billion as energy sales rose by 9% to 26,954 gigawatt hours.

For the toll roads business, Metro Pacific Tollways Corp. (MPTC) saw a 25% increase in core net income to P3.4 billion. Toll revenue rose by 18% to P15.4 billion, led by a combination of toll rate increases and traffic growth in all markets.

During the first half, average daily vehicle entries in the Philippines rose by 7% to 693,175, while Vietnam also saw a 1% increase to 78,390.

Average daily vehicle entries of MPTC’s operations in Indonesia declined by 1% to 1,203,631.

On the water business, Maynilad recorded a 29% increase in first-half core net income to P5.6 billion. Revenue increased by 23% to P16.4 billion, reflecting 4% growth in billed volumes and a 19.8% adjustment in tariff in early January.

Meanwhile, Ms. Revilla said the entire Pangilinan group has a capital expenditure budget of about P221 billion, of which P122 billion is earmarked for MPIC.

“The budget for MPIC is about P122 billion (this year). That does not include the planned acquisition for Metro Pacific Health, that’s about P45.5 billion. If you want us to include PLDT Inc., Philex Mining Corp., that’s P221 billion budget for 2024,” she said.

In July, MPIC’s Metro Pacific Agro Ventures announced its entry into agreements to acquire Universal Harvester Dairy Farms, Inc., which operates under the Bukidnon Milk Co. brand. The company produces fresh milk, flavored milk, yogurt, and cheese products, with presence primarily focused on key cities in Visayas and Mindanao.

Meanwhile, Mr. Pangilinan is expecting to sustain MPIC’s performance for the second half.

“With MPIC continuing to maintain a low cost of capital in a rising interest rate environment, the company is poised to maintain its strong growth trajectory for the rest of the year,” Mr. Pangilinan said.

“The job for the second half is to exert our efforts to substantially achieve the same kind of earnings we’ve seen in the first half,” he added.

MPIC is one of the three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority share in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave

Manila Water subsidiary enters P1.4-B bulk water partnership

MANILA Water Philippine Ventures, Inc. (MWPV), a Manila Water subsidiary serving areas outside Metro Manila, said it has partnered with Canlubang Sugar Estate (CSE) for a P1.4-billion bulk water supply project aimed at enhancing water accessibility across additional towns in Laguna.

“We are committed to delivering this crucial project with unwavering integrity, efficiency, and a steadfast focus on enhancing the quality of life of customers within our Laguna Water concession area,” Manila Water Chief Operating Officer and MWPV President Melvin John M. Tan said in a statement on Monday.

The 25-year bulk water supply project aims to deliver 17 million liters per day of potable water from Matang Tubig Spring to Laguna Water, MWPV’s concessionaire in Laguna province.

The project involves the rehabilitation of the Matang Tubig Spring (MTS) as a water source and the construction of a 13-kilometer water transmission line that will link the MTS Source Upper Box to the Laguna Wellfield Reservoir in LTI Annex, Biñan.

The project will be implemented by MWPV’s construction arm, Manila Water Infratech Solutions, and will be managed and operated by its unit Estate Water.

The start of operations is expected two years after the start of construction, which is set for this year.

“The importance of water cannot be overestimated as an essential and finite resource for the people and nation, and this must be protected and made sustainable. And this is our responsibility,” CSE President Jose Ramon Yulo said.

“With the partnership of the Manila Water group and their expertise, and in partnership also with the community, the government, and the Yulo family, we strive to bring this project to fruition,” he added.

Manila Water President and Chief Operating Officer Jose Victor Emmanuel A. de Dios said that Laguna Water is working hard to replicate the company’s best practices in the east zone and offer the same quality of service to customers in Laguna.

“We will make this work. We always strive to ensure water reliability to areas we serve within and outside Metro Manila,” Mr. De Dios said.

Manila Water serves the east zone network of Metro Manila, covering parts of Marikina, Pasig, Makati, Taguig, Pateros, Mandaluyong, San Juan, portions of Quezon City and Manila, and several towns in Rizal province.

MWPV houses the 20 domestic subsidiaries of the Manila Water Group. — Sheldeen Joy Talavera

First Gen’s Q2 income falls 2.5% to $75.26M amid higher expenses

LOPEZ-LED First Gen Corp. reported a 2.5% decrease in its attributable net income to $75.26 million for the second quarter (Q2), driven by higher expenses and lower contributions from some of its business units.

First Gen’s gross revenues increased by 7.4% to $682.05 million from last year’s $634.78 million, the energy company said in a regulatory filing on Monday.

Gross expenses, on the other hand, went up by 14.8% to $552.09 million from $481.12 million in the previous year.

For the six months ending in June, First Gen’s attributable net income fell by 7.4% to $154.08 million compared to $166.44 million the previous year. Gross revenues declined by 0.8% to $1.28 billion from $1.29 billion a year ago as a result of lower volumes of electricity sold during the first half “across all platforms except for the hydro platform.”

First Gen reported additional sales volumes from the 165-megawatt (MW) Casecnan Hydroelectric Power Plant following its turnover in February.

Natural gas accounted for the majority of First Gen’s revenue at 66.8% or $853.72 million, followed by geothermal, wind, and solar at a combined 30.2% or $386.44 million, while the remainder is for its hydro at 0.7% or $8.77 million.

For the first half, the company’s expenses increased by 4% to $997.93 million versus the $959.18 million previously. First Gen’s natural gas business unit posted a 26% increase in its earnings for the first half to $115 million.

The company said that the 420-MW San Gabriel, 1,000-MW Sta. Rita, and 500-MW San Lorenzo power plants delivered higher operating income “due to savings in operating expenses, and high spot market prices in the case of San Gabriel.”

Avion Power Plant recorded a decrease in net income due to lower kilowatt-hour sales and higher operating expenses.

Earnings from First Gen’s renewable energy unit, Energy Development Corp. (EDC), excluding hydro’s, declined by 42% to $44 million brought about by lower revenues.

“The geothermal power plants under EDC generated lower sales and operating income due to a reduction in electricity prices and electricity sold, and higher operating expenses from steam field maintenance and work-over activities,” the company said in a statement.

The unit also incurred higher interest expenses from new debt, it added.

Contributions from First Gen’s hydro platforms were at $5 million, with Casecnan Hydroelectric Power Plant accounting for $1-million earnings for its four months of operations in the first half.

First Gen has a total of 3,668 MW of installed capacity, accounting for 20% of the country’s gross generation.

At the local bourse on Monday, shares in the company rose by 2.53% to close at P17 each. — Sheldeen Joy Talavera

ICTSI Q2 profit climbs 32% on terminal volumes, ancillary services

RAZON-LED International Container Terminal Services, Inc. (ICTSI) reported a 32.3% increase in second-quarter (Q2) attributable net income to $210.67 million, driven by a rise in container volumes at its terminals and growth in ancillary services.

“While we remain vigilant of continuing economic and geopolitical uncertainty, we have a proven and sustainable growth strategy which gives us confidence in our outlook and continued ability to generate value for all our stakeholders,” ICTSI Chairman and President Enrique K. Razon, Jr. said.

For the April-to-June period, the company saw its combined revenues grow to $684.03 million, climbing by 15.4% from last year’s $592.73 million.

Broken down, the company’s second-quarter gross revenue from port operations was driven by its activities in Asia, which contributed $277.52 million to the total revenue. Revenue from operations in the US was $277.14 million, while revenue from the EMEA (Europe, Middle East, and Africa) region amounted to $129.37 million.

For the second quarter, Asia handled 1.78 million twenty-foot equivalent units (TEUs); EMEA at 607,489 TEUs, and US at 829,918 TEUs.

The listed port operator said its gross expenses for the second quarter grew by 4.6% to $306.66 million from $293.07 million in the comparable period in 2023.

“We’ve delivered a strong first-half performance, yet again demonstrating the strength of ICTSI’s diversified international portfolio and continued delivery of our strategic initiatives,” Mr. Razon said.

For the first semester, ICTSI’s attributable net income surged to $420.55 million, higher by 34% from the $313.8 million previously.

ICTSI said its first-half attributable net income includes income from the settlement of legal claims at its ICTSI Oregon and the impact of the deconsolidation of its unit, PT PBM Olah Jasa Andal (OJA) in Jakarta, Indonesia.

Excluding this nonrecurring income and charges, its attributable net income for the first semester would have increased to $401.69 million, the listed port operator said.

Its gross revenue for the January-to-June period increased to $1.32 billion, marking a 13.8% increase from $1.16 billion in the same period last year.

ICTSI said gross revenues from port operations were driven by higher ancillary services revenues, tariff adjustments, volume growth in terminals, and favorable translation impact of the appreciation of Mexican peso-based revenues.

The port operator managed a consolidated volume of 6.31 million TEUs for the first semester, 0.48% higher than last year’s 6.28 million TEUs.

The company attributed this volume growth to the impact of new services and improvement in trade activities at select terminals, ICTSI said.

However, ICTSI said its volume growth was offset by a volume decrease at its unit Contecon Guayaquil S.A. (CGSA) in Guayaquil, Ecuador due to the expiration of its concession contract at Pakistan International Container Terminal and the deconsolidation of OJA in Indonesia.

The company’s capital expenditures (capex) for the first six months amounted to $185.72 million, which was allocated to the ongoing expansion at CMSA in Mexico, ICTSI Rio in Brazil, Manila International Container Terminal (MICT) in the Philippines, ICTSI DR Congo S.A. (IDRC) in the Democratic Republic of Congo, and East Java Multipurpose Terminal (EJMT) in Indonesia.

For the year, the company has allocated $450 million for its capex, including the $60-million capex carried over from 2023, ICTSI said.

At the stock exchange, shares in the company gained P7.20 or 2.01% to end at P365 each. — Ashley Erika O. Jose

PLDT, Smart partner with NCDA to support persons with disabilities

PANGILINAN-LED PLDT Inc. and its wireless arm Smart Communications, Inc. said they are expanding their inclusion program by partnering with the National Council on Disability Affairs (NCDA) to provide solutions for persons with disabilities (PWDs).

“We have been doing this program for many years. We have been working together since the pandemic, and because we are now focusing on inclusion, we decided to come here and partner with NCDA,” Catherine L. Yap-Yang, PLDT first vice-president and corporate communications head, said in an interview on Monday.

PLDT and Smart signed a memorandum of understanding with the National Council on Disability Affairs (NCDA) to launch Innovation Generation 4.0. This initiative aims to engage tech-savvy youths in developing innovative digital technology solutions for persons with disabilities.

“In the course of the whole program, we provide connectivity because we conduct all these in a hybrid format. We also provide the funding for the on-site engagements,” Ms. Yang said.

“[The program] is dedicated to addressing the everyday challenges faced by persons with disabilities. By harnessing the creativity and technical expertise of young innovators, this partnership seeks to create meaningful change that benefits persons with disabilities across the country,” NCDA said in a separate statement.

Launched in 2020, Innovation Generation is PLDT and Smart’s innovation grant program for young and tech-savvy Filipinos. It serves as a platform for the youth, allowing them to pitch solutions committed to social good.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

Tech partnership streamlines PMP Pain Center’s operations

Philippine-based Pain Management Plus (PMP) Pain Center leverages clinic management software HealthBlocks360 for growth and operational efficiency

Pain Management Plus (PMP) Pain Center, a dynamic physical therapy clinic in the Philippines, has taken a proactive approach to its operations by embracing the transformative power of technology. Through its strategic partnership with HealthBlocks360 — a cloud-based clinic management software developed by HealthBlocks — PMP Pain Center is streamlining its operations and fast-tracking its expansion in the country.

PMP Pain Center was established in 2020 by Angelo Romero, President; and Naila Romero, Chief Finance Officer, a dedicated husband-and-wife team. Since its inception, PMP Pain Center has successfully navigated numerous challenges.

“PMP Pain Center began its operations during the pandemic, a time marked by significant uncertainty and unique challenges,” Angelo Romero recalls. Naila Romero adds, “There was a time we had to personally accompany and fetch our employees when serving clients so that we could operate daily.”

This unwavering commitment to delivering personalized service, even amidst a challenging start, has paid off significantly. In just four years, PMP Pain Center has expanded to 30 branches nationwide, offering a comprehensive range of treatments for pain and sports injuries across a broad patient demographic.

Even while operating a single clinic, the Romeros encountered hurdles in managing daily operations as their business grew. “When we started our operations, we relied on pen-and-paper reports combined with basic Excel formulas to monitor the clinic’s daily operations,” Angelo explains. “It was manageable at first, but as we opened more branches and took in more patients, we began having issues with data management.”

Turning to technology

Manual data entry and tracking led to inaccuracies, double bookings, and missed billings. The reliance on clinic managers for data management also resulted in errors and unaudited monetary losses. “Consolidating and balancing all branches’ month-end reports became tedious and chaotic,” Naila laments. Recognizing the need for a more efficient system, PMP Pain Center turned to HealthBlocks360.

HealthBlocks360, developed by Philippine-based HealthBlocks, is a comprehensive, cloud-based clinic management software. It offers solutions for inventory, financial, and patient record management, as well as appointment scheduling and billing. The platform is customizable to meet the specific needs of healthcare providers. 

Streamlining clinic operations

PMP Pain Center was established in 2020 by Angelo Romero, President; and Naila Romero, Chief Finance Officer, a dedicated husband-and-wife team.

PMP Pain Center, under the foresight of its owners, the Romeros, has always prioritized patient care and expanding its customer base. Understanding the needs of both their employees and the customer lifecycle, they embraced technology to enhance their operations.

Naila highlights the transformation, stating, “With HealthBlocks360, it’s easier to consolidate all reports and remotely monitor all branches. What used to take manual effort, we now obtain in just one click.” She adds, “The system handles everything — from appointment setting, patient information, and sales monitoring to HMO collections. All of our previous challenges have been resolved.”

Recognizing that not all employees are tech-savvy, the Romeros chose a user-friendly software that simplifies report generation and patient record retrieval, making transactions and audits seamless. Angelo notes, “The system not only meets our current needs but also helps us identify potential future problems.”

Today, the technology has reduced employee workload, ensuring accuracy and efficiency, and positioning PMP Pain Center for sustained growth and enhanced patient care.

Collaboration and customization

PMP Pain Center has found great success in collaborating closely with HealthBlocks360, ensuring tailored solutions that meet their specific needs and goals. HealthBlocks360 offers a wide array of features including patient appointment scheduling, inventory tracking, financial management, and secure patient record handling — all accessible remotely via its cloud-based platform for seamless operation management.

The Romeros have personalized various aspects of HealthBlocks360 to enhance productivity and efficiency within their clinics. “We’ve customized productivity reports for our physical therapists, performance reports, and even bank reconciliation reports,” Naila explains. “This customization capability from HealthBlocks360 has significantly optimized our clinic operations.”

With the robust support of this management system, Angelo, Naila, and the PMP team are focusing on expanding their network. Their future plans include collaborations with academic institutions and physical therapy schools, as well as expanding services to private companies, aiming to establish themselves as the foremost physical therapy clinic in the Philippines.

“With HealthBlocks’ adaptability and efficiency,” Naila stresses, “we are confident in integrating all future branches seamlessly.”

PMP Pain Center’s proactive approach in seeking and leveraging innovative technology, one shown by its successful partnership with HealthBlocks360, demonstrates how organizations in healthcare management are thinking ahead and recognize the need for streamlined operations that elevate patient care. 

About PMP Pain Center:

Pain Management Plus (PMP) Pain Center is a leading physical therapy clinic offering evidence-based treatment and protocols spearheaded by affiliated medical doctors and licensed physical therapists. Established in January 2020, PMP Pain Center has over 30 branches nationwide. 

About HealthBlocks360

HealthBlocks360, developed by HealthBlocks, Inc., a subsidiary of MaroonStudios, Inc., is a cloud-based clinic management software offering solutions for inventory, financial, patient records, appointment scheduling, billing, and more. Tailored to the Philippine healthcare community, it enhances efficiency and effectiveness in clinical operations. 

About MaroonStudios, Inc. 

Founded in 2014, MaroonStudios, Inc. is an IT company committed to advancing the Philippines into a first-world economy through innovative software technologies. Known for their smart-creative engineers, MaroonStudios has excelled in global competitions, perfecting their software processes to world-class standards while serving numerous organizations worldwide.

In 2016, MaroonStudios received seed funding from Sagesoft Solutions and Bonifacio Triangle Capital Holdings, leading to the launch of its health IT subsidiary HealthBlocks, Inc. in 2018, focused on providing modern, affordable healthcare management solutions.

Start your pain management journey with PMP Pain Center. Explore how HealthBlocks360 can elevate patient care and enhance operational efficiency. For more details, visit the websites of PMP Pain Center and HealthBlocks360 today.

 

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CREIT’s Q2 earnings climb to P334M on new asset revenues

SAAVEDRA-LED Citicore Energy REIT Corp. (CREIT) booked an attributable net income of P334.14 million for the second quarter (Q2), up 5.7% from the previous year’s P316.08 million, mainly driven by additional revenues from new assets acquired in 2023, which were funded by green bonds.

Gross revenues went up by 5.8% to P448 million from P423.53 million a year ago, the company said in a regulatory filing on Monday.

Its gross expenses for the April-to-June period fell by 2.8% to P26.07 million from P26.83 million last year.

From January to June, the company’s attributable net income climbed by 11.7% to P693.41 million versus the P621.04 million a year ago.

“The increase is mainly related to full take-up of incremental revenues from the assets acquired in 2023 which were financed by the green bond issuance,” CREIT said.

Revenues were higher by 15.1% to P920.85 million. Gross profit increased by 16% to P868.71 billion, translating to a gross profit margin of 94%.

“The increase [in gross profit] is related to the company’s expansion of leasing activities arising from various acquisitions of freehold assets out of the green bond’s proceeds, which have a full impact of revenue recognition this year,” the company said.

During the period, CREIT’s gross expenses went up by 2.2% to P52.14 million from nearly P51 million a year ago.

CREIT is the Philippines’ first real estate investment trust listing with a focus on renewable energy. It specializes in owning sustainable infrastructure projects, including income-generating renewable energy properties across the Philippines.

CREIT’s sponsor, Citicore Renewable Energy Corp., has over five gigawatts of project pipeline in varying stages of development, with its first gigawatt well underway. — Sheldeen Joy Talavera

Taylor Swift and the insatiable appetite for MICE facilities in PHL

PHILIPPINE STAR/MICHAEL VARCAS

THE RETURN of in-person events has been fueling the demand for MICE (meetings, incentives, conferences, and exhibitions) facilities across the Philippines. There’s no doubt that developers are cashing in on this gargantuan need for massive convention centers. The strong take-up for this sub-segment should also be buoyed by the rise in foreign tourists, including business travelers.

Filipino Swifties will definitely be glad to welcome and hear Taylor Swift live in the Philippines. The clamor to eventually host the multi-awarded performer has been compelling property firms to build massive convention centers that can accommodate Taylor’s fans. But what’s interesting is that developers are also trying to capture demand from business travelers who want to convene in person. Colliers believes that despite the availability and proliferation of online platforms, nothing replaces people’s desire to physically network and interact. This is particularly true for Filipinos, considered highly sociable beings. Already, there are plans to develop a massive convention center within Villar City, while the government has announced its plan to build the P18 billion ($314 million) New Philippine International Exhibition Center, which will have 108,000 square meters of exhibition/event space and host up to 150,000 attendees. Once completed, it will become the largest exhibition venue in Southeast Asia. It’s go big or go home for MICE development in the Philippines.

Colliers believes that the establishment of more MICE and co-working facilities should complement the accommodation and dining packages that hotels will offer to business travelers. The integration of these facilities is of utmost importance, especially in business hotels located in major business districts in Metro Manila, Pampanga, Cebu, and Davao. The Tourism department is also priming the Philippines as a major MICE destination, and this should enable the country to corner major global MICE events (including Taylor Swift’s concert and related promotional activities) and further boost tourist arrivals and spending across the archipelago. Colliers believes that previous hosting of MICECON events in Clark, Cebu, and Davao should help promote the Philippines’ viability as a MICE hub in the ASEAN region.

THRIVING MICE OPPORTUNITIES FOR HOTEL DEVELOPERS
Four- and five-star hotels are likely to benefit from the return of in-person corporate events and the resurgence of business travel. Property exhibits, pharmaceutical product launches, and overseas employment summits are among the events that help drive occupancies of hotels and are primarily hosted in hotels’ meeting rooms and exhibition centers. Hotel operators should maximize the return of these in-person events and tap corporates by offering attractive packages. Hotel operators should also work closely with the Tourism department, which is actively enticing international organizations to mount their events in the country. The department is also priming the Philippines as a key MICE destination in Asia, and this should result in the holding of international MICE events in the Philippines, especially in Metro Manila, Clark in Pampanga, Cebu, and Davao.

MORE FOREIGN BRANDS IN KEY AREAS
Colliers believes that now is an opportune time for foreign brands to expand their presence in the Philippines, given the planned modernization of the country’s international airports and the projected rise in international arrivals. The Department of Tourism is aiming to attract 7.7 million foreign visitors this year, up from 5.45 million in 2023 and 2.65 million in 2022. The government has also set a lofty goal of attracting 12 million international tourists by 2028. This optimism has been enticing foreign hotel operators to expand their presence across the Philippines. Sofitel Philippine Plaza Manila has officially closed its doors on July 1, 2024, but is expanding its presence in key destinations such as Cebu and Clark in Pampanga. Accor Hotels will also be developing a 175-room Ibis Styles and a 250-room Mercure Hotel in Subic, Zambales. Radisson Hotels also announced that they will be launching Radisson Blu in Cagayan de Oro, as well as other Radisson brands in Cebu. Other foreign-branded hotels in the pipeline will come from Sheraton, Dusit Thani, Citadines, and Tryp by Wyndham. Colliers recommends that developers be on the lookout for upcoming convention centers and soon-to-be modernized airports outside the capital region for their hotel expansion plans.

OCCUPANCY SLIGHTLY SOFTENS
Average hotel occupancies in Metro Manila reached 63% in the first half of 2024, lower than the 65% in the second half of 2023 due to new supply. By end-2024, we expect average occupancy to hover between 60% and 65% as the number of returning overseas Filipino workers is likely to pick up during the holiday season.

The holiday-induced increase in demand for MICE and other in-person events should also help prop up occupancies in the second half of 2024.

NEW KEYS IN QC AND BAY AREA
In the first half of 2024, Colliers recorded the delivery of 2,700 rooms, more than triple compared to 797 rooms a year ago. Quezon City (QC) accounted for nearly half of the new supply with the delivery of Hop Inn North EDSA (187 rooms), Ibis Styles Manila Araneta City (286 rooms), Citadines Roces (200 rooms), and Solaire North (526 rooms), Quezon City’s first five-star hotel. The Grand Westside Hotel also opened in the Bay Area and is now the largest hotel in the country with 1,530 rooms. In 2024, we forecast the completion of 4,560 rooms, lower than our earlier forecast of 5,100 rooms due to construction delays.

Among the hotels due to be completed in the second half of 2024 are Ridgewood Premier Hotel in C5 Road, Somerset Valero Makati, Seda Hotel One Ayala, Seda Hotel Arca South, Ascott DD Meridian Park, and Westside City Resorts World. The Bay Area will likely account for nearly half of the new supply.

 

Joey Roi Bondoc is the director and head of Research of Colliers Philippines.

joey.bondoc@colliers.com

Filinvest REIT powers 94% of portfolio with RE

LISTED Filinvest REIT Corp. (FILRT) said that 16 out of 17 buildings, equivalent to 94% of its property portfolio, are now powered by renewable energy (RE).

The recent additions to the company’s green portfolio are Filinvest Axis Tower 1 and Filinvest Cyberzone Cebu Tower 1, which transitioned to renewable energy after renewing their supply contracts with FDC Utilities, Inc. in June, FILRT said in a statement to the stock exchange on Monday.

Filinvest Three also transitioned to renewable energy under the government’s Green Energy Option Program (GEOP) on July 26.

“With these recent additions, 16 out of FILRT’s 17 Grade A buildings, or 94% of the portfolio in terms of the number of properties, are now supplied with 100% renewable energy as of July 2024,” the company said.

The GEOP is an initiative of the Energy department that empowers users to choose renewable energy as their primary power source.

Other FILRT buildings powered by renewable energy include Vector One, Vector Two, Vector Three, iHub 1 and 2, Filinvest One, Filinvest Two, Plaza A, Plaza B, Plaza C, Plaza D, Plaza E, and 5132 Building.

The only nonrenewable energy powered building in FILRT’s portfolio is the Capital One building in Alabang, which has a direct contract with its retail electricity supplier and coordinates independently with its chosen supplier.

“Our goal is to ensure that all our properties are not only economically viable but also environmentally responsible. This success is shared with our tenants, who are equally dedicated to our sustainability goals,” FILRT President and Chief Executive Officer Maricel Brion-Lirio said.

For the first half, FILRT saw a 7% increase in its net income to P601 million from P561.31 million a year ago. Revenue dropped by 11% to P1.4 billion while costs and expenses also fell by 3.1% to P643 million.

FILRT shares were unchanged at P3.09 per share on Monday. — Revin Mikhael D. Ochave

Good governance and laying the groundwork for sustainable growth — 2

SMPRIME.COM

(2nd of two parts)

Corporate leadership entails business transparency, integrity, and accountability, which are manifested in SM’s publication of Integrated and Sustainability Reports, its conduct of forums and public briefings, and its accessible company website, among others. Transparency invites all forms of feedback, including scrutiny, which SM welcomes from its investors and all stakeholders. We use feedback to improve our corporate governance (CG) and Environmental, Social, and Governance (ESG) initiatives alongside business performance. Doing this expands and further strengthens the circle of business trust such that investors, shareholders, and stakeholders see actual results of efforts towards actively engaging with them.

SHARED RESPONSIBILITY
Good governance becomes an even more effective tool when it is a shared responsibility and when everyone does his or her share in upholding the values of fairness, accountability, and integrity.

While the tone is set from the top, it is crucial that everyone in the organization should be involved not as mere participants but as stakeholders. SM directors, key officers and leaders attend CG training at least annually pursuant to regulatory requirement. Such a venue is used to keep leaders and management abreast of CG and ESG trends that affect business performance and strategies.

Other than SM’s annual stockholders’ meeting, the company communicates and engages with all of its stakeholders through various communication channels, such as social media and the company website. SM recognizes that the business becomes more meaningful to its customers, shareholders, and all other stakeholders when they can take part in the growth journey.

SM Investments practices good CG in all its dealings with all stakeholders, investors, business partners, creditors, customers, and employees because it believes that good CG will provide long-term growth, sustainability, and success. Its good CG framework and practices are part of the company’s core values on fairness, integrity, accountability, transparency, and stakeholder engagement. The company is recognized for practicing good CG through the ASEAN Corporate Scorecard alongside various awards and recognition.

In SM, running the business is anchored on values set by its founder, Henry Sy, Sr. or Tatang as he was fondly called. As part of its DNA to serve communities, the company values encompass the ESG aspects of the business from the get-go.

In a book written by Daniel Aronson called The Value of Values, he explains a framework called CORE which stands for Customer, Operations, Risks, and Employees.

Aronson said that the “crux of any business” are the customers. In a similar manner, Tatang instilled a high standard of service to SM’s patrons with customers at the heart of SM for 65 years.

The author also explains that when companies assess their operations through the lens of their values, they “uncover hidden inefficiencies.” The kind of business pragmatism in SM becomes a good tool in confronting complex business challenges such as the recent pandemic. It ensured sustainable returns to shareholders while still upholding the regulatory and environmental standards. This also applies to SM’s practical approach towards sustainability where it assesses what is feasible and works at where it can make the most impact such as in energy efficiency, efficient use of water resources, waste management and community engagement.

As examples, SM’s property development arm, SM Prime Holdings, is working towards reducing its ecological footprint through solar rooftops, water recycling systems, the adoption of air conditioning inverters and installation of standard Light-Emitting Diode (LED)-lighting and motion detectors on its escalators, solid waste management, advanced water conservation practices and green building developments.  Currently, it sources more than 50% of its electricity from renewable energy across all its properties and facilities nationwide.

SM has been recycling water since the 1990s, treating an average of 1 billion gallons annually in past years to repurpose for mall operations including toilet cleaning and landscaping use. It has integrated rainwater harvesting systems in over 30 malls, particularly in flood-prone areas. It made another breakthrough in water usage by treating rainwater into potable water in SM City Baguio.

SM Prime also partnered with GUUN Co. of Japan to actively participate in developing infrastructure for systematic waste management and resource recovery.

The third is all about risks. “Companies often identify risks sooner when seeking to further their values,” says Aronson. Risk means that the vast legacy of the conglomerate would be at risk.  
To help manage risks, SM has started to integrate ESG risks into its risk registers, realizing that these need special attention because of their evolving, interconnected, and long-term nature.

The most important point Aronson made is about employees and that if the company wants to get the best people, their business values should align with the company’s.

SM employees are educated on CG and ESG through the employee onboarding and training program and awareness campaigns. Through the Orientation for New Employees of SM (ONE SM), new employees are given an overview of SM’s CG framework, including the different corporate policies and its various components. A substantial portion of the orientation is devoted to discussing SM’s core values and the Code of Ethics, highlighting the roles that each can play in the development of the organization’s CG culture. The Governance, Risk and Compliance Group collaborates with the Human Resources Group, Internal Audit Group, and other teams to continue improving this program for all employees.

SM’s teams exemplify Tatang’s entrepreneurship, drive, teamwork, leadership, and, most of all, business integrity. What Tatang proved is that acting on one’s good governance values can be a very good business strategy. And in his case, it was all about the philosophy that business growth and social growth go hand in hand.

The mantra of good CG cannot be just about the company and its shareholders. It must go beyond compliance with regulatory directives. It must consider fair and acceptable behavior, among others, to those who are more vulnerable, even if it means accruing less to the bottom-line.

One can always talk of governance at length but the true challenge, however, is not in extolling the virtues of good CG. Rather, it is what happens after that.  The challenge is measuring how  far we have moved forward and how much of the CG proactive culture genuinely influences our ways of working. What we want to achieve is having the comfort that values, principles and practices are fully in place, reviewed and updated even when no one is looking and even if it does not always pay off.

 

Amando “Say” M. Tetangco, Jr. has been serving as the first independent director chairman of the Board of SM Investments Corp. since 2023. He is also the vice-chairman of SM Prime Holdings, Inc., and is an independent director of other companies. Prior to joining SM, Mr. Tetangco was a career central banker for over four decades.  He eventually assumed the post of governor of the Bangko Sentral ng Pilipinas and chairman of the Monetary Board, serving two consecutive six-year terms from July 2005 to July 2017.

map@map.org.ph

pujuan29@gmail.com

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