Property developers reported lower first-quarter profits

Property developers Filinvest Land Inc., Megaworld Corp. and Century Properties Group Inc. said Monday they posted lower first-quarter profits as the real estate industry continued to feel the impact of the pandemic.

FLI sid in a disclosure to the stock exchange first-quarter net income dropped 45 percent to P736 million from a year ago amid lower revenues from residential and leasing businesses.

FLI’s residential revenues declined by 20 percent to P 2.47 billion as overall leasing revenues weakened by 17 percent from the same period last year.

“We remain optimistic that despite the challenges, 2021 will be a better year. We look forward to further growing our residential and leasing businesses, as well as our new initiatives, such as the industrial and logistics parks,” FLI president and chief executive Josephine Gotianun Yap said.

Megaworld also reported a 33-percent decline in first-quarter net income to P2.4 billion as revenues dropped 33 percent to P10.1 billion.

Real estate sales in the first three months amounted to P5.9-billion, down 39 percent year-on-year as rental revenues decreased by 27 percent to P3.1 billion.

“Gradually, we already see improvements in the numbers, which is a reflection of the recovery in most of our core businesses. With the eased restrictions and the increasing number of Filipinos getting vaccinated, we see better quarters ahead,”  said Megaworld chief strategy officer Kevin Tan.

CPG reported a 29-percent decline in first-quarter net income to P205 million from P290 million it booked in the same period last year.

Consolidated revenues went down by 26 percent to P2 billion reflecting the impact of government restrictions in view of the persisting coronavirus health crisis.

The multiple lockdowns caused a slowdown in sales, collections and construction activities in the company’s in-city vertical projects.  Its affordable housing business contributed P156 million or 76 percent of total profit in the first quarter, up 68 percent from P93-million contribution in the same period last year.

Office leasing business contributed 30 percent of profit in the first quarter compared to 27 percent in the same period last year.

“The management is very satisfied with the performance of its affordable housing business. It is precisely at these challenging times that we expect our diversification efforts in the prior years to help the company remain resilient. Our expansion to affordable housing business is delivering the results now, which was also supported by the good performance of leasing,” CPG chief finance officer Ponciano Carreon Jr. said.

Topics: Filinvest Land , Megaworld , Century Properties , net income , 2021
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