Eton profit more than doubles to P732 million in 2010

MANILA, Philippines - Eton Properties Philippines Inc., the real estate development arm of tycoon Lucio Tan, more than doubled its net earnings last year on higher sales from residential projects and increased leasing income from its retail and office properties.

In a statement issued over the weekend, Eton said net profit amounted to P732 million, compared with P288 million in 2009, as revenues surged 126 percent to P4.5 billion.

The substantial growth in income was also attributed to the completion of a number of projects, namely One Archers Place and Eton Baypark Manila residential condominiums. Substantial construction of residential projects such as The Eton Residences Greenbelt, Eton Parkview Greenbelt, Belton Place, Eton Emerald Lofts, South Lake Village at Eton City and The Manors at North Belton Communities also contributed to the company’s increased earnings. 

Eton president and chief operating officer Danilo Ignacio said the company is confident it would sustain its growth this year with more project launches and the expected turnover of 3,600 residential units by yearend.

“Eton will show strong numbers in 2011 since we see very good opportunities for market expansion this year coupled with the scheduled turnover of our early residential projects,” Ignacio said.

For this year, the company plans to focus on the development of its two township projects - Eton City in Sta Rosa, Laguna and Eton Centris in Quezon City. It is also considering venturing into tourism development given the government’s thrust on tourism-related projects.

“We are likewise excited with the upcoming launch of our first residential project in Eton Centris, our 12-hectare mixed-use township development at the corner of EDSA and Quezon Avenue. Eton Centris is the gateway to Quezon City’s new Triangle Central Business District and our initial residential project there would be the first luxury residential project to rise in this new exciting CBD,” Ignacio added.

The first commercial project in Eton City, dubbed Village Walk, has already been launched to very good reception from investors. Construction of the second BPO office building in Eton Centris is also underway.

Eton’s confident stance in the market is based on a number of solid factors such as the continued growth in remittances from Filipinos working abroad, the low interest rate environment, and healthy lending conditions in the banking sector.

“These are very exciting times for the property industry. Factors that make for a stable economy are present. There is genuine interest in investment products. Increasing OFW remittances and low interest rates continue to fuel GDP growth and inflation is at a record low. The Philippines is now the top business process outsourcing (BPO) destination in the world, providing thousands of new jobs to Filipinos. All these things benefit the property sector,” Ignacio said.

Eton is currently operating three brands — Eton for the high end segment, Belton for the middle income segment and First Homes for the broad affordable market. The group launched a total of 38 projects in its first four years of operations. Its property portfolio of launched and completed projects encompasses residential, commercial, office projects and township developments.