ETON Properties Philippines Inc., the real-estate arm of tycoon Lucio Tan, said its first-quarter income rose 77 percent to P50.92 million from last year’s P28.8 million for the same period last year.
Total revenues amounted to P644.46 million, an increase of 20 percent over the P539.14 million generated during the first quarter of 2014.
“The first quarter of 2015 went well for Eton. Our first-quarter results provide a good indicator that we are on track toward reaching our targets for 2015,” said Josefino Lucas, the company’s deputy chief operating officer.
The company said that there was increased rental income from commercial centers in its properties in Quezon City, as well as its business-process outsourcing (BPO) office buildings.
Rental income for the quarter rose to P257.96 million, or almost double than last year’s P131.23 million, it said.
“Based on the financial results for the first quarter, Eton’s net income for 2015 is expected to be higher than the 2014 net income of P119.86 million,” the company said.
The company is strengthening its property portfolio with more office and retail projects to serve the growing BPO market, it added.
The company, which is part of the LT Group Inc. but was delisted from the Philippine Stock Exchange, earlier announced the launch of five new projects for 2015, including a high-rise residential condominium project, three office towers and a boutique mall.
The residential condominium is part of the company’s 1-hectare mixed-use development in Makati City called Eton WestEnd Square. In the said mixed-use development is a boutique mall and a BPO office building.
The company is looking at putting up its fifth BPO office building in Eton Centris in Quezon City, and its sixth BPO office building in Ortigas Center. The company will, likewise, start the expansion of its Quezon City property.
Eton earlier said it will spend some P9 billion this year, or double of last year’s expenditures of just P4.3 billion, as the company pursues increasing its recurring income portfolio.
“We believe that the real-estate market will remain strong in the segments where Eton operates, and that there is room for us to pursue its expansion plans beginning 2015,” Lucas said.
This year’s spending budget will form part of the company’s plan to spend at least P28 billion until 2019. “We are confident that our rental operations will remain strong in 2015. We are experiencing high occupancy rates in our office buildings given the strong demand from the outsourcing industry and we see this trend continuing,” Lucas said.