Shang Properties profit rises to P1.03 B in 9 mos

MANILA, Philippines - Shang Properties Inc. said its nine-month profit rose 24 percent to P1.03 billion on strong sales of its residential condominium units.

In a financial report submitted to the Philippine Stock Exchange, Shang Properties said revenues expanded 75 percent to P3.7 billion as condominium sales grew more than five-fold to P2.05 billion, mainly driven by higher sales bookings from One Shangri-La Place in Ortigas and increased completion level of the group’s projects.

Rental income slightly went up to P1.35 billion from P1.33 billion due to the increase in rental revenue from Shangri-La Plaza Mall.

Meanwhile, the Enterprise Center along Ayala Ave. reported a 3.3 percent decline in rental revenues mainly due to lower rental yield.

Rental revenue from EDSA Shangri-La Hotel slightly increased by P1.4 million due to improved average occupancy.

On the other hand, total expenses more than doubled to P2.23 billion due to an increase in condominium cost owing to higher marketing and advertising expenses for Shang Salcedo and One Shangri-La Place projects and the increase in compensation due to additional manpower for new projects.

As of end-September this year, Shang Properties had total assets worth P35.1 billion, up from P34.1 billion in end-Dec. 2011.

One Shangri-La Place, the company’s largest development to date, is targeted for completion sometime in 2014.  It comprises twin skyscrapers housing 1,304 units above the six-level Shangri-La mall expansion.

The new mall will be home to over 150 shops and various restaurants when it opens to the public next year.

The 64-story Shang Salcedo Place, on the other hand, is located on a 3,045 square meter lot in Makati’s Salcedo Village. Estimated to cost around P5 billion, the project will offer a total of 778 units, targeted for turnover to residents by 2015.