LISTED leasing firm PTFC Redevelopment Corporation posted an 86.3 percent rise in net income in its fiscal year ending in August, boosted by firmer leasing revenues and a compromise settlement reached during the year in connection with a civil case.
In its annual report to the Philippine Stock Exchange on Wednesday, PTFC said its net income for full-year 2016 soared to P55.07 million from P29.6 million in 2015.
It said revenues grew 2.95 percent to P152.4 million from the P148 million recorded in the previous year.
“Bulk of the increase was due primarily to the higher average lease rate and new tenants in the Balintawak warehouses,” PTFC said.
PTFC was formerly Philippine Tobacco and Flue-curing and Redrying Corp., and now engages in leasing properties, including warehouses. Its wholly owned subsidiary, Baesa Redevelopment Corporation (BRC), leases commercial spaces in Baesa Town Center in Quezon City.
PTFC noted that the compromise settlement it reached during the year in connection with the civil case between BRC and Robinsons Supermarket Corporation (RSC) also contributed to the rise in its full-year net income.
BRC had filed a complaint against RSC in August 2012 for breach of contract with damages in connection to the latter’s breach of the pre-termination clause of a lease contract dated 18 March 2009. Last April, BRC entered into a compromise settlement where RSC paid BRC P25 million as full and final settlement of the cases filed in relation to RSC’s breach of the subject lease contract.
“On 24 August 2016, BRC received the Supreme Court’s Resolution dated 27 July 2016, approving the Compromise Settlement and further remanding the case to the court of origin for immediate execution thereof,” PTFC said.
PTFC said further helping its bottom line this year was a 1.9 percent drop in cost of services to P62.6 million from the P63.8 million previously, while operating expenses inched up by a mere 1.07 percent to P36.7 million from the P36.3 million recorded in the previous year.