Property developer Sta Lucia Land Inc. (SLI) nearly doubled its net profit in the second quarter from the level a year-ago at the height of lockdown restrictions triggered by the coronavirus pandemic.
SLI’s April to June net profit hit P514.98 million, up by 98.7 percent from P259.18 million last year, as earnings from residential development and leasing portfolio picked up pace.
Compared to the first quarter net profit of P923.87 million, however, SLI’s net income declined by 44.2 percent in the second quarter, as tighter quarantine restrictions were reimposed by the government in Metro Manila and surrounding regions through most of April to curb rising COVID-19 cases.
The second quarter results brought SLI’s six-month net profit to about P1.44 billion, improving by 90 percent year-on-year. The increase was due to the 63 percent year-on-year improvement in revenue to P3.9 billion while lower tax expense under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law partially offset the increase in cost and operating expenses.
“Improvement in our financial results was driven basically by sales of residential lots which have shown resilience during the pandemic,”
SLI executive vice president and chief financial officer David Dela Cruz said in a disclosure to the Philippine Stock Exchange on Tuesday.
Gross rental income from the mall business rose by 21 percent year-on-year to P273 million in the first six month while revenues from real estate sales were also up to P3.26 billion from P1.99 billion in the previous year.
Meanwhile, total assets rose 26 percent year-on-year due to the temporary increase in cash as the company raised new long-term debt to refinance its more expensive liabilities. Total equity improvedby 13 percent as the company continued to plow back earnings to finance its growth plans.
SLI has 115 ongoing projects, 60 of which are in the high-growth area of Cavite-Laguna-Batangas-Rizal and Quezon It also has 25 projects in Davao while the rest are spread out in seven other regions.