Eton Properties nets P294 million in 2009

MANILA, Philippines - Eton Properties Philippines Inc., the local real estate arm of the Lucio Tan Group of Companies, reported 2009 earnings of P294 million, its first full-year profit since 2007, and said it expects to become solidly profitable with the launch of 10 new projects this year.

Based on the financial statements recently approved by its audit committee, Eton said the 2009 net income was a reversal of the P130.7 million loss incurred the previous year.

From a meager P89 million in 2008, the company’s total revenues jumped to P2.1 billion, mainly due to the substantial construction of its initial residential projects - The Eton Residences Greenbelt, Eton Baypark Manila, One Archers Place, South Lake Village at Eton City and the Manors at North Belton Communities.

Eton also attributed the significant turnaround in its financial performance to leasing income from its commercial centers and business process outsourcing offices.

Danilo Ignacio, president and chief operating officer of Eton, said 2009 proved to be a banner year for the company in spite of a challenging economic environment. For this year, the company is confident it can maintain its upward trajectory with revenues seen to improve by at least 20 percent. 

Increased sales will come from Eton Parkview Greenbelt, Belton Place and Eton Emerald Lofts which are in the advanced stages as construction goes full blast.

Ignacio said 2010 is shaping up to be a good year for the real estate industry with the holding of national elections that is, hopefully, peaceful and orderly, and continued strong remittance inflows from overseas Filipino workers.

“We have reasons to be very optimistic about 2010. First, it is an election year and we are hopeful that the country will have a peaceful and orderly national election in May. Analysts predict low interest rates and remittances from OFWs continue to grow significantly. These factors all point to a very promising year for the real estate industry. Our first quarter sales have been very strong.” Ignacio said.

As of end-December 2009, Eton, which has launched 29 projects in its first three years of operations, had an asset base of P10.7 billion or more than three times the previous level of P2.7 billion.

Eton has so far launched two projects this year – the West Wing Villas in North Belton Communities and Eton Tower Makati, a 41-storey mixed-use building featuring residential, Soho and serviced apartments.

Other projects to be launched are the company’s first condominium offering in its 12-hectare Eton Centris development at the corner of Edsa and Quezon Ave. which will be introduced by the third quarter of the year, the third phase of North Belton Communities called West Wing Villas, and a mini-enclave in South Lake Village in Eton City called River Grove. River Grove will rise on a 5.7 hectare lot geared for the upper middle market and features lot cuts averaging 500 square meters.

Since its inception in 2007, Eton has evolved into a full-range property developer with a wide portfolio of projects in mid-range to high-end residential developments,office and commercial projects and township developments.

Its foreign counterparts, Eton Properties Group of China and Eton Properties Limited of Hong Kong, are highly-recognized real estate brands.