Sta. Lucia Q2 profit down 47% on weaker real estate sales

LISTED property developer Sta. Lucia Land, Inc. posted a 47% decline in its second-quarter (Q2) attributable net income to P552.17 million from P1.04 billion in the same period last year as weaker demand led to lower real estate sales.

Gross revenue for April to June fell 25% to P2.11 billion from P2.82 billion a year earlier, Sta. Lucia said in a regulatory filing.

Real estate sales dropped 33.4% to P1.4 billion, while rental income rose 3% to P192.57 million.

For the first half, Sta. Lucia said its attributable net income slid 38% to P1.49 billion as gross revenue decreased 28% to P4.74 billion.

Real estate sales for January to June fell 37% to P3.32 billion, while rental income grew 3% to P372.92 million.

“The decline in residential sales was driven by shifting and slow market demand in key regional areas such as Cebu, Cavite, Iloilo, Davao, and Laguna. These conditions have led to lower sales absorption and reduced transaction volumes across the group’s residential portfolio,” Sta. Lucia Land said.

“Overall, while the group has maintained a level of stability through its ongoing marketing efforts, the decline in core real estate sales and ancillary revenues highlights emerging pressures within regional markets to attract potential buyers despite the headwinds experienced by the real estate industry,” it added.

Sta. Lucia Land’s portfolio consists of residential, commercial, leisure, and retail developments, including Oro Vista Grande in Antipolo, Sta. Monica Lake Residences in Pangasinan, and Almeria Village in Dumaguete.

Sta. Lucia Land shares were unchanged at P2.61 apiece on Friday. — Revin Mikhael D. Ochave