In its financial report filed with the Securities and Exchange Commission, Belle said the higher net income for 2002 is attributable to net capital gains from the spin-off and sale of its majority interest in Highlands Prime Inc., amounting to P1.4 billion.
Belle raised P2.8 billion in gross proceeds from the spin-off and sale of HPI shares in April 2002.
Net revenues from sales of real estate and club shares for the Jan. to Sept. period this year rose 25.4 percent to P210.7 million from P168.1 million the previous year.
Bulk of the sales revenues from real estate activities were generated from the company’s newest residential development project, Plantation Hills at Greenlands. Phase 1 of Plantation Hills accounted for P110.8 million in net revenues and P67 million in gross profit.
Total operating expenses, including depreciation and amortization, decreased by 22.5 percent to P86.1 million from P111.1 million, helped substantially by lower depreciation expenses as a result of the company’s disposal of unnecessary fixed assets during the period.
Thus, from an operating loss of P15.1 million last year, the company realized profit from operations of P29.8 million.
As of end-September this year, Belle’s total assets stood at P10.81 billion or 6.9 percent lower than the 2002 level of P11.61 billion, due mainly to the use of assets to reduce liabilities.
Total liabilities, on the other hand, decreased by 15 percent to P5.82 billion from P6.84 billion as of end-2002.
Of the loans payable, P1.21 billion represents the principal outstanding of floating rate notes (FRN), with interest at two percent per annum. The final maturity of the FRNs is on May 10, 2014.
The balance of loans payable are peso loans from various local financial institutions with interest ranging from 8.5 percent to 13 percent per annum, which are predominantly secured.
Belle is branching out into agricultural land development to improve its cashflow operations. It is now in the initial construction of a farm lot subdivision within a large tract of land near the Tagaytay Midlands complex which is generally known as the Tagaytay Greenlands.
The project is envisioned to tap into the niche market of both the professional grower and the lifestyle farmer. It will give lot buyers the opportunity for cut-flower and vegetable cultivation, and other agricultural pursuits.
Company officials are confident that Plantation Hills will be a major contributor to Belle’s bottomline. Sales of its farm lot project are expected to result in a substantial pickup in revenues during the second half of the year.
Belle is also planning to develop the 18-hole south course of the Tagaytay Midlands Golf Club Inc.
On the gaming side, Belle is holding talks with various parties for the opportunity to use the horse racing franchise of its 70 percent-owned subsidiary Metro Manila Turf Club Inc.