LISTED Araneta Properties Inc. saw a 9.22-percent decline in net income during the first three months of the year as the company held on to some of its inventory while waiting for land prices to go up.
In a disclosure to the Philippine Stock Exchange, Araneta Properties said net income in the first quarter fell to P6.4 million from P7.05 million a year earlier.
Gross revenue amounted to P32.48 million, a 12.95 percent drop from P37.74 million in the same comparable period last year.
“This performance is directly attributed to marketing strategies being implemented, specifically the holding on of some inventory for much better price,” Araneta Properties said.
At the firm’s stockholders’ meeting late last year, chairman and chief executive officer Gregorio Ma. Araneta 3rd said the company is holding back in selling the housing units of Colinas Verde in San Jose del Monte, Bulacan.
“We’ve started to go slow in selling our property because we want to avail of the appreciation,” Araneta said.
Ongoing projects by other developers in the area would add value to Colinas Verde, Araneta noted.
The company’s real estate sales in the first three months decreased by 12.18 percent to P28.6 million from P32.56 million a year ago also as a result of the marketing strategy, the company said.
Total assets as of end-March amounted to P1.8 billion, while total liabilities were at P67.1 million.