Sta Lucia Land posts lower income in 2013

MANILA, Philippines - Real estate developer Sta. Lucia Land Inc. (SLI) said it recorded slightly lower earnings as in 2013 turnover of lots declined despite the ongoing property boom.

In a regulatory filing, SLI said its core earnings fell 3.6 percent to P300 million last year, “partially attributed to the decline in commercial lot sales as the company moves towards increasing its lease income from these properties.”

SLI said the deferred revenue recognition on sales on some of its projects as a result of longer down payment schemes also contributed to the decline. Customers’ deposits more than doubled to P673 million from P282 million.

“The full effect of the deferred  revenues will be reflected starting 2014,” said SLI executive vice-president and chief operating officer David dela Cruz.

Reservation sales rose 14 percent to P2.7 billion last year from P2.36 billion in 2012 as the  number of units sold jumped 23 percent to 1,698 from 1,382.

Mall rental income dropped eight percent amid ongoing renovations and improvements in Sta. Lucia East Grand Mall. SLI is integrating the existing mall with the new shopping center.

The new mall will have a gross floor area (GFA) of over 50,000 square meters (sqm.) which will complement the existing 180,000 sqm GFA mall.

SLI launched a total of 14 projects last year including Splendido Taal Tower 2 (Batangas), Arterra (Mactan, Cebu), Cainta Greenland (Rizal), Southfields Phase 1A (Cavite) and Orchard Towers (Pasig).

Total capital spending hit P1.35 billion last year while landbanking activities amounted to just under P90 million with acquisitions of properties in Laguna, Batangas, Cavite, Rizal and Davao.

“The opening of the new mall, the thrust to increase lease income by offering the company’s commercial spaces in selected subdivisions nationwide  to major retailers, along with the budgeted P2 billion capital expenditures earmarked for 20 new projects will be the focus for year 2014,” Dela Cruz said.

The Sta. Lucia Group has had a strong history of building quality projects, having developed over 9,000 hectares of prime properties with over 200 projects nationwide.

It by far has served the middle income segment by providing residential units while tailor-fitting amortization schemes to make the units affordable without comprising quality.

SLI was incorporated in December 1996 as Zipporah Mining and Industrial Corp. It then went into a restructuring program that transformed it into a real estate firm.