PRIME property developer Rockwell Land Corp. posted a 5-percent drop in net income for the first three months of the year on weaker revenues from its commercial developments.
In a financial report to the Philippine Stock Exchange on Monday, Rockwell Land said net income in the first quarter fell to P342 million from P360 million in the same period last year.
It said that while consolidated revenues were up 10 percent in the first quarter at P2.01 billion from P1.83 billion previously, revenues from its commercial development segment went down 63 percent to P271 million from last year’s P791.4 million.
Rockwell said the decline was “mainly due to the sale of office units in 8 Rockwell [formerly Lopez Tower]in 2015.”
First-quarter revenues from its retail and cinema operations amounted to P211 million and P47 million, respectively. Both are classified under Rockwell’s commercial development business segment.
For its residential development segment, revenue grew 59.4 percent to P1.65 billion from last year’s P1.04 billion and accounted for 82 percent of Rockwell’s total revenues.
“Bulk of the revenues came from the sale of condominium units, including accretion from interest income,” Rockwell said.
Meanwhile, hotel operations generated revenue of P90 million during the first three months of the year, up 42 percent from last year’s P64 million.
Rockwell said that for the first quarter, it spent P2.3 billion for project and capital expenditures, which was 28 percent higher than the P1.8 billion recorded last year.
“The expenditures consist mostly of development costs for the Proscenium project and land acquisition costs,” Rockwell said.
Total assets of the company as of end-March 2016 stood at P37.26 billion, up 3.41 percent from the P36.03 billion recorded at the end of 2015.
Meanwhile, its total liabilities amounted to P22.74 billion, a 4.07 percent increase from the end-2015 level of P21.85 billion.
“The increase in total assets was mainly from higher advances to contractors, while the increase in total liabilities was mainly from accrued trade and other payables,” Rockwell said.