Eton likely to miss 2011 income target of P1 billion

MANILA, Philippines - Eton Properties Philippines Inc. said it would not meet its 2011 income target of P1 billion this year due to tough business conditions caused by the global financial crisis.

Eton president Danilo Ignacio, said the company is likely to post a net profit of around P800 million this year, 9.3 percent higher than the P732 million reported in 2010.

In a worst case scenario, Eton could post flat earnings, he said, noting that uncertainties continue to linger, affecting investor sentiment.

Despite a difficult business environment, Ignacio said the company remains on an expansion mode with nine projects lined up for 2012. “We remain cautiously bullish on the property sector. Banks continue to offer low interest rates,” he said.

“Eton develops an average of nine projects based on current conditions. We think we can sustain that number,” he added.

Of the nine projects to be launched next year, four will be BPO (business process outsourcing) projects, a commercial center in Eton City, Tower 2 of its first small office.home office (SOHO) project, and a large township.

The Eton Group, which has launched a total of 43 projects in its four years of operations, operates three major brands — Eton for the high-end segment, Belton for the middle-income segment and First Homes for the broad affordable market.

Eton is focusing on the development of its two major township projects: Eton City in Sta. Rosa, Laguna and Eton Centris at the corner of EDSA and Quezon Ave.

The company is accelerating the construction of BPO buildings to boost its portfolio to a total of nine office buildings by the first quarter of 2013 as it aims to take advantage of the huge demand for office space particularly in the northern part of Metro Manila.

Eton currently has five BPO buildings with a gross leasable area of 70,000 square meters. By June 2013, Eton’s office GLA will increase by an additional 100,000 sqm.

The firm’s mixed-use Eton Centris complex will have a total of seven BPO buildings. Following the success of the first building, 1the 3-story One Cyberpod Centris, the company will start construction of two more BPO buildings in the last quarter of 2012.