Edsa Properties net income rises 19% to P138-M in H1

Edsa Properties Holdings Inc. (EPHI) posted a net income of P138 million in the first half of this year, up by 19 percent from the previous year’s level, the company said in a report filed with securities regulators.

EPHI owns 78.72 percent of Shangri-la Plaza Corp., which operates the Shangri-la Plaza Mall in Mandaluyong. It also has interests in EDSA Shangri-la Resort Inc. and Shangri-la International Hotel Management Ltd.

EPHI said the income growth was fuelled by the continuing strong rental income performance of the Shangri-la Plaza Mall, which increased by eight percent to P283.3 million in the first half this year. Its occupancy rate as of end-June this year stood at 97 percent, which is well above the industry average of 82.7 percent.

EPHI registered revenues of P375.59 million, eight percent higher than the P348.83 million level in the same period a year ago. Rental income from the EDSA Shangri-la Hotel went up 11.7 percent to P27 million while income from parking fees rose 7.6 percent to P26.9 million.

Meanwhile, EPHI’s share in the profit of its associate company, KSA Realty Corp., the owner of The Enterprise Center in Makati, declined to P23.7 million from P26.4 million. Although TEC’s average occupancy of approximately 84 percent was higher than last year’s 81 percent, its net income decreased by P7.4 million to P69.8 million due to the interest expenses incurred on KSA’s P1.2 billion long-term loan secured in March 2003.

EPHI is optimistic though of sustaining its gains for the rest of the year as it expects the completion of the Shangri-la Mall’s Cineplex this month to lead to further improvement in mall patronage.

In view of the continuing strength of the property market, EPHI is likewise seriously considering establishing a second residential condominium project located within the company’s Ortigas compound.

Its first residential condominium project, The Shang Grand Tower, is expected to be completed by the end of 2005. Located at the heart of Makati’s central business district, the project will feature 46 storeys of one, two and three bed-room condominium units.