Highlands Prime sees 20% profit hike

Highlands Prime Inc., a publicly-listed property leisure development firm controlled by the family of retail tycoon Henry Sy, is looking at a 20-percent rise in its net profit this year on higher sales from its residential condominium units.

Highlands president Antonio Henson said the company expects to end the year with a net income of P150 million as against the P126 million earned in 2004. Revenues are seen to hit P800 million, 34 percent higher than the previous year’s P595 million on brisk sales of condominium units at The Woodridge at Tagaytay Highlands.

"We expect to exceed what we achieved last year. Our projects have been doing well. With many more projects in the pipeline, we look forward to consistent growth in revenues and profits in the coming years, "Henson said.

For this year, the company expects to generate P1.7 billion in sales from The Woodridge, its first residential project.

Banking on the strong response by the investing public to its projects, Highlands is eyeing revenues of over P1 billion next year or double that of 2004. The Woodridge’s 138 units are fully sold, generating more than P1.4 billion in sales for the company to date.

To address the increasing demand for more residential units and further boost its cashflow, Highlands is set to develop a single-detached, house-and-lot subdivision and a family-oriented condominium development with complete recreation facilities located within the Camp Highlands area. The company also plans to build at least eight more model houses in Alta Mira and Lakeview Heights in the next 12 months.

In January this year, Highlands launched The Horizon, a mid-rise residential condominium development at the Tagaytay Midlands. The project, which stands on a nine-hectare property, will have 12 cluster buildings or 220 four-bedroom units which are targeted for completion by the first half of 2006. An initial P200 million has been earmarked for the development of The Horizon which would be financed through internally-generated cash.

Highlands expects to raise P2 billion in revenues from The Horizon.

The company is likewise open to joint venture arrangements with interested parties to capitalize on its expertise in planning and marketing leisure property projects.

For next year, the company will focus on growth and expansion, increasing its exposure and spurring development in surrounding areas.

Highlands recenty declared a P0.05 cash dividend per share, totalling P100 million. Entitled to receive dividends are shareholders of record as of Aug. 15.

The cash dividend, according to Henson, is in line with the group’s dividend policy and in view of the company’s steady growth in the past three years.

The company was spun off as part of Belle Corp.’s corporate restructuring aimed at wiping out its heavy debt load of about P6.3 billion. It was listed on the Philippine Stock Exchange in April 2002.

It was initially set up by Belle with property assets of P7.71 billion, comprised of undeveloped land, subdivision lots and finished residential units located around the vicinity of Tagaytay Highlands International Golf Club Inc.

Highlands primarily focuses on the high-end of the leisure property market. The company has over 500 hectares of land in Tagaytay City, Laguna and Batangas. This landbank is envisioned to be developed into high-end residential and/or leisure property projects.