Property leasing firm PTFC Redevelopment Corp. announced on Monday that its net income for the first three months of its fiscal year beginning September, increased to P9.6 million from the P4.7 million registered in the previous year.
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, leases commercial spaces in Baesa Town Center in Quezon City.
In a financial report to the Philippine Stock Exchange, the firm said the high revenues registered during the period mainly drove the increase in net income.
For the quarter ending November 30, PTFC’s revenues slightly increased by 4.5 percent to P37.5 million, from the P35.9 million posted in the previous year.
“Bulk of the increase pertains to the increase in average lease rate,” PTFC said.
Similarly, the firm’s gross profit also increased to P21.6 million, from the P20 million posted last year.
Meanwhile, operating expenses of the company slightly decreased to P23.7 million from P24.4 million recorded last year, while other expenses significantly slumped to P490 thousand from P4.1 million a year ago.
“Other expenses last year was higher due to the payment of the Parent Company’s deficiency tax, including interest for a case versus the Bureau of Internal Revenue,” the company said.
The BIR assessed the firm with a tax deficiency of P10.84 million for the company’s tax period in 2014. The company said it paid its deficiency taxes amounting to P4.1 million, including related interest expenses, in October 2014.
In June 2015, both PTFC and the BIR filed their respective appeals to the Court of Tax Appeals (CTA), where the case is still pending.