LT Group bets big on Eton
LT Group has infused P2.52 billion into Eton Properties and another P1 billion into subsidiary Eton City. Photo from Eton Properties website
MANILA, Philippines — LT Group Inc. (LTG) has injected P3.52 billion of capital into its property units to support growth and expansion as part of plans to “explore new opportunities” in a competitive landscape.
In a regulatory filing on Friday, the conglomerate said it had infused P2.52 billion into Eton Properties Philippines Inc. and another P1 billion into Eton City Inc. (ECI).
The latter is a subsidiary of Eton, whose projects include office spaces, commercial centers, mixed-use townships, residential developments and land lease.
“The capital infusion will help [Eton] and ECI’s business growth and to strengthen its capital position,” LTG said in its disclosure.
The developer’s leasing portfolio consists of 288,000 square meters, with around 192,000 sq m dedicated to office space.
This comes after LT Group chair Lucio Tan promised to pursue new opportunities for the group’s expansion, “ensuring long-term relevance and contributing meaningfully to national development.”
“Beyond delivering quality products and services, we continue to drive growth through resilience, strategic execution and responsible development,” Tan said during LTG’s recent annual stockholders’ meeting.
Ramping up investments at a challenging time
LT Group is also increasing its investment in real estate at a challenging time for the market, as developers grapple with weak demand and dampened consumer confidence.
Still, analysts have said that the industry may have room for growth, especially with interest rate cuts.
READ: Banking lifts LTG earnings, tobacco unit falters
Meanwhile, parent company LT Group booked a record-high bottom line of P28.92 billion, up by 14 percent on the strength of its tobacco, banking and liquor arms, offsetting the weakness in Eton.
Revenues likewise rose by 11.8 percent to P128.96 billion.
Fortune Tobacco Corp. contributed P12.77 billion to the group’s total earnings, up by 12 percent, due to higher dividends received from cigarette manufacturer PMFTC Inc.
