LISTED property developer Shang Properties Inc. posted a 31.1-percent decline in consolidated net income for the first three months of the year to P528.9 million from P762.2 million a year ago due to weaker condominium sales.
In a financial report to the Philippine Stock Exchange, Shang Properties said condominium sales in the first quarter fell to P1.16 billion from P1.5 billion posted in the previous year.
It said the drop in sales was due to the smaller percentage of completion recognized during the period.
“The condominium sales posted a net decrease of P339.9 million mainly due to fewer available units for sale of One Shangri-La Place this year. Most units already sold in 2015 and other condominium projects are still ongoing,” Shang Properties said.
It said consolidated revenues in the first three months fell 11.8 percent to P2 billion from the P2.26 billion posted in the same period last year.
On the other hand, rental revenues in the first quarter rose to P676.8 million from P670.2 million in the same period last year due to the “rental escalation and higher rental yields of The Enterprise Center.”
Meanwhile, Shang Properties noted that its newly opened hotel Shangri-La at the Fort contributed P68.8 million to revenues in the first three months. Shangri-La at the Fort commenced its hotel operations just last March.
Shang Properties is a high-end real estate developer engaged in the development of residential projects, hotels and malls.
Its significant and active subsidiaries are composed of Shangri-La Plaza Corp., SPI Parking Services Inc., Shang Properties Realty Corp., EPHI Logistics Holdings Inc., Shang Global City Holdings Inc., Shang Fort Bonifacio Holdings Inc., Shang Property Management Services Corp., Shang Property Developers Inc., KSA Realty Corp. and Shang Wack Wack Properties Inc.