Eton Properties income dips in H1
The real estate arm of the Lucio Tan Group of Companies—Eton Properties Philippines Inc.—posted a net income of P31 million net income in the first half of 2012 on the back of P995 million in revenues, the company said Friday.
In a report to the Securities and Exchange Commission, Eton said that revenues in the first six months of the year slid by 60 percent from P2.56 billion in the same period last year, partly due to non-recognition of sales of projects that have yet to commence construction.
The company uses the percentage-of-completion method in recognizing residential project revenues.
While construction of Eton’s ongoing residential and commercial projects continued full-blast in the first half, construction activities in Aurora Heights Residences, First Homes Makati and West Wing Villas were moved back to give way to design improvements and enhancements.
Despite construction delays, however, the company said it still expects to post net income of about P300 million for 2012.
“We moved back construction timetables of some projects for much-needed design improvements,” Eton’s officer in charge Michael Tan said. “These range from road widths to building facade.”
He added that these enhancements “would definitely add value to these projects in terms of quality and functionality.”
“This is no different from what we did in 2007 for The Eton Residences Greenbelt, when we commissioned a Hong Kong-based architectural firm, Palmer and Turner, to redesign the building facade,” Tan explained. “This was done even when we have already fully sold the project.”
Tan said he expects the recognition of income for these projects once construction begins. For the fully sold West Wing Villas, construction is expected to start in September this year, while the high-rise First Homes Makati and Aurora Heights Residences will commence in the first quarter of 2013.
First Homes Makati is a 34-story condominium project along Pasong Tamo, Makati, just steps away from Ayala Avenue.
Recently, the company launched Hanna Manor, the 11th cluster of The Manors at North Belton Communities in Quezon City, an enclave featuring 14 clusters of five-story mid-rise buildings.
Eton also plans to launch within the year a Quezon City project featuring mid-rise and high-rise condominiums, a residential condominium for the high-end market in Makati and the second tower of First Homes Makati.
In the five years since it was founded, Eton Properties launched a total of 45 projects. Eton’s portfolio of launched and completed projects encompasses residential, commercial, office projects and township developments.
