Listed property developer Anchor Land Holdings Inc., along with its subsidiaries posted a 34-percent decrease in its net income for 2015 to P431.2 million from P652.8 million.
In a disclosure to the Philippine Stock Exchange, Anchor Land said the decline was mainly caused by the “lower construction accomplishment of saleable condominium projects.”
The firm noted that the bulk of its projects were completed in 2014. Of these are the Anchor Skysuites and Solemare Parksuites, while projects such as Admiral Baysuites and Clairemont Hills Parksuites were “substantially” completed by the end of that year.
“The completion and/or substantial completion of the projects [in 2014]resulted in lower construction accomplishments in 2015,” Anchor Land said.
However, the group noted that the decrease in construction accomplishment of residential condominiums is in line with its strategy of focusing on recurring income projects.
“This is in line with the Group’s strategy in re-balancing the mix of its revenue sources,” Anchor Land said.
Similarly, a downward movement was observed in the group’s real estate sales, which decreased by 9 percent to P2.95 billion from P3.24 billion in the previous year.
Meanwhile, the firm’s 2015 rental income slightly increased by 7 percent to P242 million from the P225.7 million posted a year earlier.
The company said this was due to increased occupancy in the company’s investment properties, which include the newly completed One Logistics Center.
Anchor Land noted that it observed a 45 percent increase in investment properties, mainly driven by its acquisitions of parcels of land for the group’s ALHI Coporate Office, an additional lot to expand its Admiral Hotel project and its new real estate development in Binondo.
Despite the slower financial growth of the company in 2015, Anchor Land Chairman Stephen Lee Keng noted that the firm along with its subsidiaries still witnessed “stable” demand for its projects during the year.
The chairman still expressed his optimism for the future of the company.
“Moving forward, you can be assured that Anchor Land will proactively seek ways to enhance shareholders value, by continuously reviewing our products mix and aligning these with developments and opportunities in the market,” Keng said “Hand in hand with this, we will aggressively pursue emerging opportunities and find pockets of growth in the market, keeping in mind our goals of providing innovative products and services that evolve with the lifestyle of our clients.”