LISTED real estate developer IRC Properties Inc. swung to a profit of P62.1 million in the first nine months of the year from a net loss of P13.6 million a year earlier as revenues surged, boosted by gains from asset sales
The company said revenue for the period increased by 968 percent to P89.6 million from the P8.9 million a year ago, which was “due to fair value gain on investment property for a 10-hectare land and sale of units in the joint venture project with matching increase in the total cost and expenses by 32.7 percent.”
In July of this year, IRC entered into a subscription agreement with the Tokyo-based Rizal Partners Co. Ltd. to sell 127.2 million common shares, with a par value of P1.00 per share, at the subscription price of P1.40 per share for a total subscription price of P178.08 million.
Also during the third quarter, IRC Properties secured approval from the Securities and Exchange Commission to increase its capital stock from P1 billion to P1.5 billion, with a par value of P1.00, as it approved the company’s amended articles of incorporation.
In September, the company said that it had identified an additional 10 hectares of land in its Binangonan property that can be recovered or cleared and re-titled in the name of the company.
IRC also noted that the negotiations with a leading local real estate developer to acquire a portion of the 2,000-hectare Binangonan property have not yet materialized but they expect to complete the deal by the end of the year.
In September, IRC Properties chairman Esteban G. Peña Sy confirmed that they are in negotiations with Ayala Land Inc. subsidiary, Amaia Land Inc. to sell 18.8 hectares of IRC’s Binangonan property for P100 million, but have not formalized the deal due to pending technicalities such as water drainage problems in the area.
Total expenses of the company increased to P27.2 million in the first nine months from the P21.8 million registered in the same period of last year.
“The increase in expenses was due to increase in salaries and wages, office supplies, commission and depreciation,” IRC said.