GREEN builder ArthaLand Corporation said its net income in the first nine months of the year grew more than fivefold due mainly to unrealized gains recognized in its financial statement.
In a financial report to the Philippine Stock Exchange on Wednesday, ArthaLand said its net income in the nine-month period soared by 469 percent to P767.4 million from P134.8 million in the same period last year.
The company attributed the growth to the rise in other income, which grew by 3,028 percent to P931.8 million from P29.2 million a year ago.
“The significant increase was largely due to unrealized gain recognized in the P&L [profit and loss statement]due to change of valuation from cost to fair value of investment properties,” the company said.
Although it reported a sharp increase in net income, ArthaLand posted a 77 percent decline in realized revenues from real estate sales during the period to P325.4 million from P1.41 billion last year.
“The decrease was attributable to lower number of units sold in the first three quarters of the year as compared to the same period of last year, and the decreasing inventory of Arya Residences units since Tower 1 is fully sold while Tower 2 is almost substantially sold,” ArthaLand said.
Total assets of the firm amounted to P6.9 billion at the end of the third quarter from P6.5 billion at the end of 2015.
ArthaLand Corporation is led by the Po family, who runs CPG Holdings Inc. (CPGHI), the parent firm of Century Pacific Food Inc., the largest canned food company in the country.
CPGHI has a 40.3 percent stake in ArthaLand, making it the largest shareholder. AO Capital Holdings 1, Inc. is another major shareholder of ArthaLand with a 26 percent stake in the property firm.