MANILA, Philippines, April 29, 2022 - Major real estate player Eton Properties Philippines, Inc. (EPPI) reported an uptick in total assets and gross profit margin despite a setback in net profit due to the expected market slowdown brought about by the global economic recession last year.
In the company’s recently concluded Annual Stockholders’ Meeting held last April 29, Eton Properties has maintained its healthy balance sheet due to its effective cost-saving measures that helped cushion the impact of the Covid-19 pandemic in 2021.
Eton Properties has posted modest growth of 2% in total assets or about Php 32.4 billion compared to 2020, while the company’s equity grew by Php 19.2 billion, resulting in an improved debt-to-equity ratio of 3% from 0.71 to 0.69 due to the reported earnings and ongoing property investments.
Prudent spending for operational expenses also led to a slight improvement of gross profit margin to 70% while maintaining its liabilities flat at Php 13.2 billion year on year.
Eton Properties’ market asset value also went on an upward trajectory by 12%, from Php 54.5 billion to Php 60.8 billion. With this, the company forecasted an increase in EBITDA by 17% to reach Php1.5 billion in 2022.
“Our company’s financial results for 2021 showed that we have kept on track with our efforts to cushion the impact of economic slowdown. This year, we are on momentum to continue our goal to increase our leasing portfolio, which has contributed by 82% of our total revenue,” said Eton Properties Executive Director Kyle Tan, who has been appointed to lead the company’s local operations.
Amid a slower demand in the office and residential markets, the company disclosed Php 2 billion in total revenues and a corresponding net income of Php 550 million in 2021. The office leasing portfolio delivered the most share with 77% contribution, while commercial and retail added 11%. Residential leasing and the rest of the leasing portfolio accounted for a 12% share.
Since Eton Properties’ leasing business has been an essential segment in 2021, Centris Cyberpod One and Centris Cyberpod Three remained 100% fully leased out for the year, while Centris Cyberpod Five reported a 118% growth in its occupancy by the year-end, and occupancy levels are expected to improve further as the economy is opening up.
“This year, we are adding more gross leasable area under the leasing portfolio, while we will aim to activate some of our remaining raw lands across the country that have good potential for development,” Tan adds.
Blakes Tower, standing at 36 floors, along Malugay Street in Makati City, offers a hybrid workplace model with 11,500 sqm available leasable office area.
With the initial offerings for the hybrid workplace model, the 36-storey Blakes Tower located at the one-hectare mixed-use development Eton WestEnd Square in Makati Central Business District has 11,500 sqm of available leasable office area, which can be retrofitted to hybrid cuts at varying office size requirements ranging from 40sqm to 1,000 sqm for more functionality.
Blakes Tower has allocated 11 floors exclusive for the office area (8th-19th), while 15 floors (20th-34th) are devoted to residential units. Employers and employees will have the option to rent the residential floors to minimize the health risk and have seamless work-life integration.
By the second quarter of this year, the company will launch the Eton City Square inside the vast master-planned township Eton City in Sta. Rosa, Laguna. This commercial district will bring additional 5,824 sqm of leasable area.
Eton Properties is the real estate brand of the Lucio Tan Group, one of the biggest business conglomerates in the Philippines. Its foreign counterpart, Eton Properties Ltd, is an established real estate brand in Hong Kong and mainland China. With an extensive land bank in strategic locations all over the country, Eton Properties specializes in office projects, commercial centers, and mixed-use township developments, as well as, high-end and mid-income high-rise and horizontal residential developments.
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