Rising mid-market property developer Empire East Land Holdings Inc. reported that its consolidated net income for the first half of the year more than doubled to P270 million from P100.1 million a year ago thanks to brisk real estate sales from ongoing projects.
In a financial report released on Wednesday, the company said consolidated revenues—composed of real estate sales, realized gross profit, finance income, earnings of associates, commissions and other revenues —expanded by 86 percent to P2.5 billion from the P1.4 billion registered in the same period of 2014.
“The Group’s marketing concepts and sales strategies, project location, flexible payment scheme and aggressive selling have contributed to the increase in sales. The Group’s new projects are connected to mass transit system and are conveniently located in the business districts of Metro Manila,” Empire East said.
Real estate sales surged to P2.05 billion in the first six months, more than double the P909.4 million recorded last year.
This was derived from sales of ongoing projects such as Southpoint Science Park, San Lorenzo Place, Pioneer Woodlands, The Sonoma, The Rochester, The Cambridge Village, California Garden Square, Kasara Urban Resort Residences, Little Baguio Terraces and Laguna Bel Air.
Gross profit for the first half amounted to P626.2 million, almost double the P315.6 million registered in the same period of last year. Similarly, realized gross profit also nearly doubled to P609.7 million from P315.2 million previously.
Finance income slightly declined to P141.2 million from P148.8 million in the first half last year and was derived mostly from in-house financing, accounting for 6 percent of the total revenue.
Other sources of income such as commissions from a subsidiary, rentals of investment properties and those obtained from other sources amounted to P293.9 million, representign 12 percent of the total revenue.
Operating expenses jumped to P575.8 million from P520.4 million last year, while finance cost and other expenses/charges also increased to P77.5 million from the P57.9 million previously.
Empire East said that landbanking remains a top indicator of the company’s performance for the first half of the year.
“The Group has been continuously acquiring interests in properties through either outright acquisitions or joint venture arrangements with landowners. It intends to have sufficient properties for development within the next five to seven years,” it said.
Empire East is a real estate developer that targets the lower and middle-income markets. Its core products are mid- to high-rise condominium towers within Metro Manila as house-and-lot packages in progressive suburban areas.