High-end property developer Anchor Land Holdings Inc. is confident its strategy to “rebalance” its project portfolio to include more residential rental property, hotels, and commercial property will continue to drive the company’s financial growth.
In a statement on Tuesday, Anchor Land Chief Executive Officer Steve Li expressed optimism the company would exceed its objectives financial growth for 2016 after Anchor Land posted strong third-quarter financial results.
“We are confident we can sustain our momentum throughout the year as economic fundamentals remain strong, and as we continually focus on strengthening our portfolio of projects to ensure that we can deliver high-quality projects that meet the different needs of our target market,” Li said.
Anchor Land’s residential developments, all high-end condominium projects, provided most of the company’s revenues through the first three quarters of the year, but Li said the company’s recurring income projects are contributing more as the company branches out.
“ALHI’s real estate sales accounted for bulk of revenues resulting from the improved sales of its high-end residential projects such as Monarch Parksuites in the booming Bay City area; the Admiral Hotel and residential development along Roxas Boulevard; and Oxford Parksuites, Princeview Parksuites and Anchor Grandsuites in Binondo,” the company said.
In the third quarter of the 2016, Anchor Land reported a 45 percent rise in revenues to P1.07 billion, a jump from the previous year’s third quarter revenue of P735.76 million.
“As a result, its consolidated net income rose 10.19 percent to P409.08 million in the first nine months of 2016, a double-digit growth from its P371.25 million net income in the first nine months of 2015,” Anchor Land said.
In addition, the company’s total revenues in the first nine months of 2016 rose 2.53 percent to P2.84 billion from the P2.77 billion revenues reported during the same period in 2015.
Apart from the strong take up of its residential projects, the company noted that its move towards a more recurring income-based portfolio has also contributed to the company’s financial growth.
In an earlier interview, Li noted that with the firm’s push towards growing towards the recurring income market, as seen with the urban dwelling projects, hotels, and commercial project in the pipeline, the firm aims to its recurring income to account for 20 percent of its total revenues in the next five years.
Among Anchor Land’s non-residential projects are the One Logistics building along Taft Avenue in Pasay City, and the One Soler project in Tondo, Manila, envisioned as a mixed warehousing and retail center.
“Based on our target, we think in five years time, our recurring income should be around 20 percent of our overall contribution. So urban dwelling is also part of our recurring income with commercial and hotels,” Li said.
At present, rental income only accounts for approximately 7.2 percent of the company’s total revenues, with real estate sales accounting for the bulk or 85 percent of the revenues.