Publicly listed property developer Rockwell Land Inc. posted a 10 percent increase in net income for the first nine months of the year despite a 10 percent drop in consolidated revenue for the period.
Net income for the nine months rose to P1.088 billion from P986.1 million a year earlier.
The company’s financial reports to the Philippine Stock Exchange on Monday showed that lower interest expense made up for the impact on net income of the fall in revenue.
“Interest expense amounted to P344.8 million, lower by 23 percent than last year’s P450.4 million,” the company said in the disclosure. “The decrease was mainly due to the lower debt lever of P13.3 billion vs. P15 billion in September 2014, as the company started principal amortization in the fourth quarter of 2014. The average interest rate of the company’s consolidated debt is 4.9 percent.”
Rockwell posted a 10-percent decline in consolidated revenues in the first nine months of the year to P5.4 billion from P6.04 billion a year ago, due to lower condominium sales.
The company disclosed that sales went down 19 percent during the period, mainly as the company last year benefited from the substantial completion of its project, The Grove Towers C-F in Ortigas business district.
Even then, condominium unit sales still contributed 78 percent of Rockwell’s consolidated revenues.
Rockwell’s residential development unit generated P3.52 billion in revenues, most of which came from the sale of condominium units.
Commercial development revenues registered a hefty 155-percent growth to P1.89 billion from P741.5 million posted last year.
This was mainly due to the sale of office units in the 8 Rockwell project.
For the first nine months of 2015, the company said it spent a total of P5.4 billion for capital expenditure, which is 19 percent lower than the P6.6 billion it spent the same time last year.
The development costs were mainly for Rockwell’s Proscenium project in Mandaluyong City.