Eton Properties remains resilient amidst the global recession

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.