EDSA Properties reports slightly lower profit in ’02

EDSA Properties Holdings Inc. (EPHI), the local property holdings arm of the Kuok Group, reported slightly lower net income for 2002 despite the improved rental earnings from its main Shangri-La Plaza Mall along EDSA, as higher depreciation and interest expenses related to its expansion pulled down profits.

EPHI officials said from a consolidated net income of P223.54 million in 2001, the group’s profit decreased by 0.6 percent to P210.09 million last year.

Aside from its mall operations, EPHI derives rental income and other sources of revenue from tenants and occupants in the EDSA Shangri-La Hotel in Mandaluyong, the Enterprise Center building in Makati, and carpark fees from its newly created subsidiary EDSA Parking Services Inc.

"Despite the uncertainties in the economic environment, which was principally brought aobut by the worldwide threat of terrorism, the group’s rental income continued to increase by 12 percent to P571 million for the year," EPHI officials said.

The increase in rental income was principally due to the 12-percent jump in tenant rentals at the Shangri-La Plaza following the mall’s expansion and redevelopment, also attracting about 10 percent more customer traffic over the previous year.

"The group continues to be cautiously optimistic on the overall prospects of the country’s economy and is actively pursuing new opportunities," EPHI said.

The company has already laid out the upgrading of the mall’s cinema complex and restaurant offerings to take advantage of the increasing demand for more mall entertainment centers. In addition, it has invested in a luxury residential condominium development known as the Shang Grand Tower project at the heart of the Makati central business district, expected for completion by end-2005.

Last year, EPHI planned to venture into freight, warehousing and logistics business to expand its Philippine operations. The company will invest in a new holding firm to be jointly owned and controlled with its affilaite, the Hong Kong-based Kerry Logistics Network.