Highlands Prime Inc., a leisure property development firm controlled by the SM Group of retail tycoon Henry Sy, posted a net income of P35 million in the first nine months of the year, down 41 percent from P59 million the same period a year ago. Highlands Prime attributed the drop in earnings to lower rental income and higher expenses.
In a financial report filed with the Philippine Stock Exchange, the company said its revenues grew 34 percent to P290 million, mainly coming from the sale of Lakeview Heights lots, Horizon and Woodridge Park.
Highlands Prime reported a two-percent increase in interest income to P5.3 million. It gained P15.6 million from the sale of some Belleview units and another property.
Operating expenses increased by 16 percent due to increased taxes and licenses, depreciation, salaries and wages, marketing and advertising and commission expenses.
As of end-September this year, Highlands Prime’s total assets stood at P3.051 billion, nine percent down from the end-2006 level.
This is mainly due to a 75-percent decrease in cash from P340 million to P84 million.
Total receivables declined to P181 million due to a lower level of receivables from buyers who have fully paid for their units.
On July 31, 2007, Highlands Prime took a P100-million long-term loan from the Metropolitan Bank & Trust Co. which was used to fund land acquisition in the Calamba area. The company still has unused P100 million with MBTC, P500 million from China Bank and a P200- million CTS line from BDO.
The company expects to generate P1.9 billion in revenues from the Woodridge project which is slated for completion next year. The first seven buildings or 71 units out of the total 125 units or 10 buildings will be completed in 2008.
The leisure homes developer has set aside P900 million this year for the construction of new luxurious log cabins and residential subdivision lots which include the The Hillside, Woodlands Point, and Woodridge Park.
Woodridge Park is Highland’s most luxurious project to date which will comprise 10 buildings, estimated to cost around P1.5 billion to P2 bilion.
The Woodlands Point, on the other hand, will involve the construction of 70 cedar log cabins priced at between P20 million and P30 million which will occupy 250 to 300 square meters of space. Each cabin will have four bedrooms.
The Horizon, a mid-rise residential condominium development envisioned to be a golfer’s haven, is seen to raise approximately P2 billion in gross revenues for Highlands. The Horizon’s four-bed room units with an average floor area of 150 square meters boast of views of the Midlands golf course, Taal Lake and volcano.
Highlands is also building single-detached homes in the Lakeview and Alta Mira subdivisions in Tagaytay Midlands by building Balinese, Filipino and Californian Meditteranean designed houses.
Funding will come from proceeds of the company’s preselling activities and bank loans.