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THE developer of Tagaytay Highlands told the Philippine Stock
Exchange on Tuesday that its profit last year more than doubled as
gross sales value surged due to brisk sales of its latest real
estate project.
In its disclosure, Belle Corp. said its net
income jumped by 118 percent to P332 million year on year, as gross
sales value more than doubled to P1.5 billion from P684 million in
2006. Net revenues from operating sources at end-December grew by 7
percent to P622 million.
The company attributed the growth to the
“favorable market reception” of Belle’s newest upscale
residential project, Lakeside Fairways, as well as the continued lot
sales in Plantation Hills at Greenlands and The Verandas at Saratoga
Hills.
“The robust economic outlook for the
Philippines and the relatively stable political environment were
major contributors to the strong performance of Belle during 2007,
as well as for the whole economy. We continue to be bullish on the
high-end property market in the Philippines for 2008 despite the
recent slowdown in the US economy,” Willy Ocier, Belle
vice-chairman, said.
The company’s farm lots subdivision,
Plantation Hills, was completed in 2005 with the fourth phase done
during the first quarter of last year. The latest phase of the
project called The Ranch, will be launched this year.
Development for The Verandas started two years
ago and was completed in December, while Lakeside Fairways, a
lots-only subdivision at the south of the existing Tagaytay Midlands
golf course, was introduced April last year. At end-December, the
first four phases of Lakeside Fairways were 86-percent sold.
Revenues from Lakeside Fairways lots pre-sold last year will appear
in Belle’s books this year.
The firm’s operating expenses, including
depreciation and amortization, grew by 10 percent to P143 million
year on year due to higher project activity. This led to an income
of P257.6 million from real estate operations or 25 percent higher
than previous year.
Equitized net earnings from associated companies
rose by 37 percent to P72.2 million and these came from its
36-percent owned associate, Highlands Prime Inc., as well as from
its 34-percent owned associate, Pacific Online Systems Corp.
Interest expense dropped by 9 percent to P223.1
million on the back of lower interest rates. Due to the appreciation
of the peso against the dollar, Belle earned P166.1 million in
foreign exchange translation gain last year or almost 88 percent
higher from its dollar-denominated debt of about $22 million.
Total assets grew by 2.5 percent to P9.51
billion while cash and cash equivalents increased by 10 percent to
P63.3 million year on year. Receivables rose by 27 percent to P431.6
million due to its new projects.
-- Likha C. Cuevas-Miel
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