After seeing a surge in income and revenues in 2019, Lucio Tan-led Eton Properties Philippines remains bullish on sustaining its growth trajectory in 2020.
In the third quarter of 2019 alone, net income soared 99% on the back of a strong performance of its leasing business and real estate sales, reaching Php626 million compared to the Php479 million recorded the previous year. In the same period, total revenues were 32% higher at Php2.46 billion.
Eton Properties is anticipating to sustain its earnings growth by intensifying leasing revenue, enhancing the land values of prime properties, and optimizing land bank assets.
“With its strong results coming off 2019 and its continued momentum, any speculations regarding Eton Properties disposing of assets, or the company itself being offered to interested parties are unfounded and baseless,” says Eton Properties Chief Operating Officer Karlu Tan Say. “Beyond giving us healthy profit margins, our well-balanced portfolio mix allows us to better manage our risks while giving us the opportunity to gain from the appreciation of land values in the future. As the Philippine economy grows, it is imperative that we continue strengthening Eton Properties as an organization.”
Strong recurring income streams
Eton Properties strengthened its presence on the commercial front in 2019, as a growing number of tenants across its commercial projects began operations, specifically in Eton Centris in Quezon City, Eton WestEnd Square in Makati City, Eton Square Ortigas in San Juan City, and Eton City Square in Sta. Rosa, Laguna.
The Company’s office buildings were also delivered, allowing locators to commence operations in Cyberpod Five in Eton Centris, Quezon City, and eWestPod in Eton WestEnd Square, Makati City.
These contributed to the Company’s revenues from leasing operations, which continued to grow last year.
Optimizing land bank assets
The Company has made a recent foray into offering its strategically located and extensive land bank assets for lease starting with Eton City in Sta. Rosa, Laguna. The sprawling 600-hectare property is ideal for office and commercial land lease with its ready market of existing residential villages within the property and techno parks and industrial estates that herald seamless business operations in the South of Manila.
Eton Properties also aims to partner with hotel and leisure locators for its 36-hectare beach front property in Mactan, Cebu. The asset is envisioned to be converted into an integrated mixed-use resort township through the site’s long beach front, crystal clear waters and a wide 9-hectare natural lagoon.
An eye on the future
Clearly, the Company’s strong showing in 2019 indicates that Eton Properties is poised to capitalize on emerging industry trends through balancing growth, profitability, and shareholder value creation. Eton Properties aims to maintain this in the coming years, as the Company sees more of its developments come through.
To date, Eton Properties has 35 projects under its wing and has completed 2 townships, 1 nano township, 8 commercial centers, 6 BPO hubs, 1 events venue, 1 hotel, 1 serviced residences, 8 high-rise condominiums, 1 mid-rise development, and 6 residential subdivisions. Eton Properties currently has a leasing portfolio of around 181,000 square meters of office space and over 39,000 square meters of retail space.
“Eton Properties has its eye on the future as it is poised to deliver more projects that will contribute positively to its growth as a company,” Ms. Say said.
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