Highlands Prime net income drops 74% in Q1 on lower sales

MANILA, Philippines - Highlands Prime Inc., the leisure estate development arm of the SM Group, said its net income fell 73.6 percent in the first quarter this year due to lower real estate sales and rental income.

Financial statements filed with the Philippine Stock Exchange showed its net earnings fell to P7.08 million from P26.84 million as real estate revenues declined 34.6 percent to P151.44 million.

Interest income, however, jumped to P5.1 million from only P500,000, largely brought about by the P562 million escrow fund for the acquisition of the Canlubang property in Laguna.

Selling and marketing expenses decreased 36 percent to P9 million, primarily due to lower commission expense.

The company expects to complete the construction of 23 individual log cabins at Woodlands Point by the third quarter of the year. Additional log cabins will be constructed as they are sold.

Woodridge Place Phase 1 is also slated for completion this quarter. Phase 2 of this condominium project at Tagaytay Highlands will be formally introduced to the market before the end of May 2010. This project consists of two mid-rise buildings with more than 80 condominium residential units available for sale.

Highlands is also set to launch within the quarter Pueblo Real Phase 2, a condominium and farm lot project at Tagaytay Midlands. 

Pueblo Real Phase 2 will offer more than 400 condominium residential units and about 35 farm lots.