AYALA-LED Prime Orion Philippines Inc. (POPI) posted net income of P27.8 million in the six months to December 2016, down sharply from the previous year’s profit of P432 million, in the absence of a one-time gain from the sale of property assets the year before.
“Income last year was mainly attributable to the gain on the sale of investment properties in Mandaue, Cebu City, and Sto. Tomas, Batangas,” POPI said in its quarterly report released on Friday.
The company said consolidated revenue for the six months to December–which corresponds to the first half of its fiscal year ending June 2017—fell 34 percent year-on-year to P360.4 million due to lower real estate sales.
For the October to December 2016 period, or its fiscal second quarter, POPI swung to a net income of P16 million from a net loss of P62.1 million the year before.
Consolidated revenues in the second quarter dropped by 7.5 percent to P186.6 million from P201.9 million in the previous year due to lower specialty leasing revenues. “However, such decrease was offset by the increase in insurance premiums and commissions,” it said.
The company is currently working on the redevelopment of the 20-hectare Tutuban Center in Divisoria, Manila into a mixed-use development which will offer expanded mall spaces, dormitories, school, hospital, logistics, parking and office spaces.
POPI earlier announced it planned to spend P15 billion to redevelop the complex to increase its gross leasable space to 200,000 square meters from 50,000 square meters at present.
The master plan for the development will be coordinated with the plans for the North South Railway Project (NSRP) of the government, which will have one of its stations at the Tutuban Center.
POPI is primarily a real estate developer but also has interests in manufacturing and retailing/distribution, and non-life insurance through subsidiaries Tutuban Properties Inc., Lepanto Ceramics Inc., and FLT Prime Insurance Corp. It is 51.36-percent held by property giant Ayala Land Inc.