PROPERTY developer Prime Orion Philippines Inc. said net income in its fiscal first quarter to September soared to P494.9 million from P3.8 million a year ago, boosted by gains from the divestment of some of its properties.
“Income was attributable to the gain on the sale of investment properties in Mandaue, Cebu and Sto. Tomas, Batangas,” Prime Orion said in its quarterly report.
Prime Orion is now 51.36 percent owned by Ayala Land Inc. (ALI). The company’s shareholders approved last October ALI’s entry into the company through a share subscription deal valued at P5.62 billion.
Last August 18, Prime Orion subsidiary Orion Property Development Inc. sold a 124,780-square meter parcel of land in Sto. Tomas, Batangas for P203.83 million.
In September, Prime Orion also sold its investment property in Mandaue City, Cebu for 432.6 million. The sale was approved by its board of directors on September 4, 2015.
Revenues in the July to September period more than doubled to P346.7 billion from P167.8 billion a year ago, getting a boost mainly from the operations of the Tutuban Center mall which posted a 4 percent increase in sales.
In terms of its subsidiaries, Tutuban Properties Inc. swung to a net loss of P3.4 million from a net income of P3.8 million last year on higher costs.
Its unit Lepanto Ceramics Inc. also widened its net loss in the quarter to P9.5 million from a net loss of P1.2 million in July to September 2014.
Non-life insurance subsidiary FLT Prime Insurance Corp. recorded a net loss of P2.5 million from a net income of P4.2 billion a year ago due to higher claims and losses, which increased by 11 percent year-on-year, coupled with a 2 percent decrease in revenues.
Prime Orion holds 17 hectares of the 20 hectares of the Tutuban complex in northernmost Metro Manila. The P5.6 billion proceeds from the sale of shares to Ayala Land will be used to finance a two- to three-year redevelopment of the Tutuban complex.
Apart from the 20-hectare Tutuban block, Prime Orion also has a 10 percent stake in Cyber Bay as well as other assets that include a six-hectare lot in San Vicente, Palawan, and a 14-hectare Lepanto ceramics plant which is now being converted into a warehouse hub.