Philrealty in the black for second straight year

MANILA, Philippines - Listed real estate firm Philippine Realty Corp., fresh from exiting a court-assisted corporate rehabilitation, has recorded its second consecutive year in the black.

In a regulatory filing, Philrealty said its net income hit P39.35 million last year, up from P4.22 million in 2012 and a reversal of the  P212.6-million net loss in 2011.

Income from rent, real estate sales, management fees, interest income and commission sank 23 percent to P364.27 million from P475.22 million in 2012.

“Sales of Skyline Tower slowed down as fewer units became available to buyers while new sales were booked on sale of Icon Plaza units which is 74.28 percent completed as of yearend,” Philrealty said.

Rental income of subsidiary PRHC Property Managers Inc. improved due to escalation in rental rate, the firm said.

However, Philrealty said its costs and expenses eased at a faster pace to P325.59 million, down 32 percent from P482.74 million a year ago.

Reeling under debt for 12 years, the property firm exited a corporate rehabilitation program early this month and committed to capitalize on a resurgent real estate market.

To regain its prominence as a leading high-end property developer, Philrealty is fasttracking the completion of the second of five towers to rise at the P250-billion Andrea North in New Manila, Quezon City.

The company needs to raise P700 million to complete construction of Sky Villas, which will offer about 108 units in 31 floors and targeted for turnover to buyers in the first half of 2016. Total sales in Sky Villas is expected to reach roughly P3 billion.

Last year, Philrealty allotted P5 billion for a mixed-used project in Bonifacio Global City (BGC).

Philrealty and Greenhills Properties Inc. earlier signed a joint venture deal to develop a 6,400-square-meter prime property in BGC. It will feature three towers: one office, one hotel or serviced apartment and one residential.