Lucio Tan-led Eton income down 98% to P11.7-M
MANILA, Philippines - Lucio Tan-led real estate firm Eton Properties Philippines Inc. posted a 98% decline in its net income in the first 9 months of the year to only P11.7 million largely due to delayed recognition of income from ongoing projects.
In a disclosure to the Philippine Stock Exchange (PSE) on Tuesday, November 20, Eton Properties said this was due to the 45% decline in its revenues which reached only P2 billion in the January to September period.
The company, led by the country's second richest man, also said year-to-date Realized Gross Profit (RGP) also decreased by 62% or P679 million as compared to same period last year.
"The decrease in net income was partly due to non-recognition of RGP of projects that have yet to commence construction. While construction of Eton's ongoing residential and commercial projects continued full-blast during the period, construction activities in Aurora Heights Residences, First Homes Makati and West Wing Villas were moved back to give way to design improvements and enhancements. Income for these projects will be recognized once construction begins," Eton explained.
Some changes in the design and other enhancements Aurora Heights Residences will be made on the building facade, improving the floor plan of all units, and building additional parking facilities as well as adult and kiddie pools.
First Homes Makati, Eton said, will also have a change in building the facade design for the project, a bigger swimming pool and amenity area, and additional parking facilities.
Eton also said the changes in West Wing Villas include wider inner roads that will make for a better planned residential community.
The company said construction of West Wing Villas started in September this year while the construction for high-rises First Homes Makati and Aurora Heights Residences are slated for the first quarter of 2013. - Rappler.com