Upscale property developer Shang Properties Inc. last year posted a 22.8-percent growth in net profit attributable to shareholders to P2 billion on higher revenues from the sale of residential condominium units and leasing operations.
Gross revenues reached P6.9 billion in 2013, about 28 percent higher than the level in the previous year due to higher income from residential development and rental from mall and office properties.
Revenues from residential condominium projects rose by 44 percent to P3.9 billion due to higher revenues recognized from One Shangri-La Place and Shang Salcedo Place projects.
Sales from residential condominium units accounted for 57 percent of the total revenues.
Shopping mall Shangri-La Plaza grew revenues by P343 million, mainly due to the additional income booked from newly opened East Wing Mall as well as rental escalation of the existing mall.
Office leasing operations at The Enterprise Center, on the other hand, grew by P141.2 million to reach P803.8 million in 2013, mainly due to improved average occupancy rate to 97 percent from 86 percent in 2012.
Total expenses of the group amounted to P3.8 billion last year, P845.1 million higher compared with the previous year.
During the period, cost of condominium sales increased due to more units sold in 2013. General and administrative expenses declined by P24.7 million, mainly due to lower marketing and advertising and condominium dues expenses this year compared with last year.
The company’s unreimbursed share in common expenses increased by P85 million, mainly due to unrecovered cost of utilities, janitorial and security expenses of the newly opened East Wing Mall that were borne by the group.
Total assets of the company at the end of last year amounted to P39 billion, a growth of 8.3 percent from the previous year’s level. Cash holdings increased by P290.5 million to P1.9 billion due to collections from sales of condominium projects and proceeds from bank loans.
Shang Properties’ principal stockholder, the Kuok Group of Malaysia, is a diversified regional conglomerate with interests in real estate, trading, transportation, food, manufacturing, finance, leisure and recreation and media. It is well-known for its Shangri-La Hotels and Resorts and luxury real estate unit, Kerry Properties Ltd., which has extensive operations in Hong Kong and China.