LISTED property developer IRC Properties Inc. said net income in 2015 dropped by around 38 percent from the previous year as higher development costs for one of its projects weighed on earnings.
In a financial report to the Philippine Stock Exchange (PSE), IRC said its net income last year fell to P28.79 million from P46.78 million in 2014.
The company said its cash assets shrank by 80.4 percent to P9.05 million from the P46.17 million recorded in the previous year, due to costs associated with land development and the construction of houses at its Casas Aurora project.
It said gross revenues were also lower at P89.60 million last year from P109 million in 2014.
However, it reported strong growth in real estate sales to P24.47 million, double the P11.63 million registered in the previous year.
The company said 14 assigned units from joint ventures with Dreamhauz Management and Development Corp. were sold, resulting in revenue of P21.4 million, and four assigned units from joint ventures with Dell Equipment & Construction Corp. were also sold, with total revenue of P3.05 million.
The company’s total assets last year stood at P3.2 billion, higher than the P2.95 billion posted at the end of 2014.
It said its noncurrent assets stood at P2.08 billion in 2015, consisting of investment properties, property and equipment net of accumulated depreciation and other assets. On the other hand, its current assets stood at P1.14 billion, slightly higher than the P1.08 billion recorded at the end of 2014.