Income from real estate operations surged 62 percent to P40.9 million from P25.2 million in 2002.
In a financial report filed with the Securities and Exchange Commission, Belle Corp. said the increase was also due to the reduction in exposure to non-core investees and its successful debt restructuring efforts in 2002.
Net revenues from sales of real estate and club shares went up six percent to P254 million from P240 million in 2002, due mainly to the launch of the company’s newest residential development project, Plantation Hills at the Greenlands during the second half of 2003.
As of end-December last year, development of phase 1 of Plantation Hills was 38 percent complete with 139 out of 218 lots sold.
However, total net revenues went down from P321 million to P274.9 million due to a P59.2-million sale of undeveloped land in 2002.
Total operating expenses dropped by 27 percent to P145.2 million from P198.9 million in 2002, helped by lower depreciation expenses resulting from the company’s disposal of unnecessary fixed assets during the period.
Losses from investees decreased 94 percent to P18.4 million from P329 million.
The company’s lower debt levels, especially in its US dollar-denominated debt, greatly reduced its interest rate and foreign exchange risk. Interest expense dropped 34 percent to P234.5 million from P357.7 million.
Total assets of the company declined 15 percent to P9.72 billion as of end-December last year from the previous level of P11.46 billion, due mainly to the use of assets to reduce liabilities.
As a result, total liabilities decreased 14 percent to P5.86 billion from P6.84 billion.
Belle has lined up several projects to further augment its revenues. The company is in the planning stage for the construction and development of the second 18-hole golf course of the Tagaytay Midlands Golf Club. It is also now in the construction stage of phase 1 of Plantation Hills at the Greenlands.
Apart from this, Belle is preparing for a new residential subdivision to be known as The Parks at Saratoga Hills. All houses will follow a contemporary American country theme. The initial phase of Saratoga Hills is being planned on approximately 11 hectares.