Eton posts P21-M profit

MANILA, Philippines - Eton Properties Philippines Inc., the real estate arm of the Lucio Tan Group of Companies, posted first semester earnings of P31 million on revenues of P995 million.

In a financial report filed with the Securities and Exchange Commission (SEC), Eton said its first half revenues fell 60 percent from P2.56 billion in the same period last year partly due to non-recognition of sales of projects that have yet to commence construction. The company uses the percentage-of-completion method in recognizing residential project revenues.

While construction of Eton’s ongoing residential and commercial projects continued full-blast in the first half, construction activities in Aurora Heights Residences, First Homes Makati and West Wing Villas were moved back to give way to design improvements and enhancements.

Despite construction delays, however, the company said it still expects to post a net income of about P300 million this year.

“We moved back construction timetables of some projects for much-needed design improvements. These range from road widths to building façade. The enhancements would definitely add value to these projects in terms of quality and functionality. This is no different from what we did in 2007 for The Eton Residences Greenbelt, when we commissioned a Hong Kong-based architectural firm, Palmer and Turner, to redesign the building facade. This was done even when we have already fully-sold the project,” said Michael Tan, officer-in-charge of Eton.

Tan said he expects the recognition of income for these projects once construction begins. For the fully-sold West Wing Villas, construction is expected to start in September this year and the first quarter of 2013 for high-rises First Homes Makati and Aurora Heights Residences. First Homes Makati is a 34-story condominium project along Pasong Tamo, Makati, just steps away from Ayala Ave.