Real estate firm Eton Properties Philippines Inc. reported a 77 percent increase in net income for the first quarter of the year, with rental earnings accounting for the bulk of growth.
The company said in a statement its first-quarter net income surged to P50.92 million from P28.8 million a year ago as revenues grew 20 percent to P644.46 million from P539.14 million.
Rental income nearly doubled to P257.96 million from P131.23 million a year ago, pushed up by strong recurring sales in commercial centers Centris Station and Centris Walk, as well as its office towers Cyberpod Centris One, Cyberpod Centris Two, Cyberpod Centris Three and Eton Cyberpod Corinthian.
“The first quarter of 2015 went well for Eton Properties. Our first-quarter results provide a good indicator that we are on track toward reaching our targets for 2015,” Josefino C. Lucas, Eton deputy chief operating officer, was quoted as saying.
Eton’s revenues consist of 70 percent residential sales and 30 percent recurring income from commercial office and retail establishments.
In the next five years, the company expects a 50-50 mix in its residential and commercial leasing projects portfolio, in accordance with its five-year P28 billion spending plan, Lucas said earlier.
This year is the first of the five-year expansion blueprint, with P9 billion of the P28 billion earmarked for such work in 2015 – more than double the actual spending of P4.3 billion in 2014.
The P9 billion spending will be divided equally among ongoing residential projects and new mixed-use developments and office tower projects lined up for this year.
Project launches in 2015 include a high-rise residential condominium tower called Eton WestEnd Square; three office towers; and a mixed-use development consisting of a boutique mall and office intended for the business process outsourcing segment.
The company recently increased its authorized capital stock to P8 billion from P5 billion to strengthen its balance sheet in a bid to relist on the Philippine Stock Exchange (PSE) after its voluntary delisting on January 2, 2013.
The firm was delisted due to its inability to meet the 10 percent minimum public float requirement, holding only 5.65 percent public ownership.
Eton, taking up a 3 percent share of the revenues of the Lucio Tan-led conglomerate LT Group Inc., is a private property firm engaged in the development of mixed-use, residential, commercial office and retail property projects.