MANILA, Philippines - Upscale residential developer Anchor Land Holdings Inc. reported a double-digit profit growth in the first half, allowing it to remain on track to breaching the P1-billion full year income mark anew.
Higher real estate sales and leasing income contributed to the earnings, growth, the company said in a regulatory filing.
First half net income hit P510.87 million, 11 percent higher than the P460.52 million in the same period last year as consolidated revenues expanded 31 percent to P2.93 billion from P1.35 billion.
“The improvement in consolidated revenues was a result of then continued sales and construction of residential condominiums namely Wharton Parksuites, Anchor Skysuites, Solemare Parksuites Phase 2, Admiral Baysuites, Clairemont Hills Parksuites and Oxford Parksuites,” Anchor Land said.
“Moreover, the group’s rental income increased 39 percent to P113.86 million as a result of full operations of One Shopping Center, Two Shopping Center and Mandarin Square commercial units,” it added.
However, costs and expenses surged to P2.19 billion from P1.02 billion given the continued construction of its residential condominium projects.
Selling and administrative expenses jumped 41 percent to P582 million due to the increase in items like salaries and wages, rental expenses, taxes and licenses, and marketing expenses, the company said.
For this year, the property developer is focused on increasing its footprint adjacent to its current developments.
Anchor Land allotted P5 billion in capital expenditures for this year, up from P4.5 billion last year to pursue follow-up projects in its existing developments.
Anchor Land chairman Stephen Lee said the company will further strengthen its presence in Chinatown where the company started and where it has established a solid niche and loyal customer base among affluent Filipino-Chinese businessmen.
Projects for this year include the P11-billion, four-tower Monarch Parksuites, which will rise on a nearly two-hectare property between the SM Mall of Asia and the Pagcor Entertainment City.
In Chinatown, Anchor Land’s residential developments include the Oxford Parksuites, a learning-centered project and the Princeview Parksuites that will offer practical units sizes and cater to young families.
To increase its recurring income, the company will enter a commercial venture in Binondo called One Soler, which will offer warehousing facilities to Chinatown traders.
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