Highlands Prime reverts to profitability
Leisure estate developer Highlands Prime Inc. reverted to profitability in the first semester as the company booked better revenues from the sale of residential lots, condominium and log cabins.
HPI, led by the family of tycoon Henry Sy, posted a six-month net income of P16.4 million, a reversal of the net loss of P27.8 million incurred during the same period last year, according to a disclosure to the Philippine Stock Exchange.
Most of the semester’s profit was generated in the second quarter when HPI booked P16.29 million in three-month net profit against a P5.93-million loss in the same period last year.
The company booked revenues of P254.6 million in the first semester, up 61 percent from the same period last year.
“The realized revenues for the current period were better due to the contribution of the residential lot projects, which accounted for 58 percent of the total realized revenues. Condominium and log cabin projects contributed 42 percent of the total,” the disclosure said.
HPI posted a gross profit of P119.8 million for the six-month period, 80-percent higher than the level in the same period last year, likewise due to the contribution of the higher-margin residential lot projects.
Other income, which primarily came from interest income and forfeited sales from cancelled sales, amounted to P16 million, or almost the same as P16.8 million in the same period last year.
On the expenditure side, total operating expenses of P85 million rose 6 percent year on year primarily due to the increase in manpower cost and repairs and maintenance.
Interest expenses of P28.6 million were down 37 percent year on year mainly due to the lower average lending rate and a considerable reduction in outstanding bank loans.
The company has two projects under construction—Woodridge Place Phase 2 and Sierra Lago.
Woodridge Place Phase 2 is a condominium project in Tagaytay Highlands overlooking Taal Lake, which was formally introduced to the property market in May 2010. This consists of two mid-rise buildings with 128 condominium residential units available for sale. Construction of the first tower is in full swing.
Launched in November 2010, Sierra Lago is a subdivision development located at Tagaytay Midlands. Its architectural theme is modern Mediterranean and will have Mt. Makiling and the Highlands mountain range as backdrops and the fairways of the Midlands golf course and Taal Lake as view corridors. This has 185 lots with cuts of about 200-300 square meters. The project is expected to be completed by September.
