Listed developer IRC Properties Inc. said its net income for the first nine months of 2016 grew by 10.6 percent year-on-year, which it attributed to an increase in sales of its Casas Aurora townhome project, a land sale to Amaia Land Corp., and a fair value gain in recoverable land area in its large Binagonan, Rizal property.
In a financial report to the Philippine Stock Exchange on Friday, IRC Properties reported that its net income in the nine-month period rose to P68.8 million from the P62.2 million in the previous year.
“The increase in net income was due to fair value gain from increase in recoverable land area, sale of land to Amaia Land Corp. and an increase in sales from our Casas Aurora project,” the company said.
Total revenues of the firm in the first nine months of 2016 jumped 71.2 percent to P153.4 million from the P89.6 million last year.
IRC likewise attributed this to the sale of 69 house and lot units in its four-hectare Casas Aurora project during the period.
Earlier this year, IRC announced that Amaia Land Corp., a unit of Ayala Land Corp. had agreed to purchase a six-hectare portion of IRC’s 2,200-hectare Binangonan property for approximately P30 million.
Amaia reportedly plans to acquire a total of 18.8 hectares of the tract, according to the company’s earlier statements.
IRC Properties Chairman Esteban Pena Sy earlier said that the firm is still in the process of clearing portions of its Binangonan property due to the number of land claimants that are coming out.
“Right now, we already cleared 165 hectares. Aside from that, we have another 50 hectares that are in the process of clearing and there are more to come because there are some claimants who already approached us. Hopefully, we can claim more than a thousand [hectares],” Pena Sy said in an earlier interview.
Total cost and expenses increased to P82.9 million from P27 million from the same period of last year due to the corresponding increase in cost of sales, which rose to P53.9 million from last year’s P10.6 million in the nine-month period.
“Cost of sales significantly increased due inclusion of cost of land sold to Amaia Land Corp,” IRC Properties said. “The increase in expenses was also attributable to increase of salaries and wages due to increase in personnel, likewise the increase in office supplies, and depreciation.”
Apart from the Casas Aurora project, IRC Properties has two other subdivision projects in the Binangonan property, the seven-hectare Sunshine Fiesta Subdivision and the eight-hectare Fiesta Casitas.
It is will soon launch its fourth subdivision project in the area called Casas Bauhinta, which will occupy approximately five hectares of land. The project is currently in the planning stage.