Arthaland 1H 2020 Net Income Up 65% to P917M
Arthaland Corp. (PSE: ALCO), the country’s foremost developer of sustainable and green properties, recorded a net income of P917 million in the first half of 2020. In June, the company completed the sale of 40% of its interest in the North Tower of Savya Land Development Corp. to Mitsubishi Estate Corp.
“We are extremely pleased to have finalized our strategic partnership with Mitsubishi Estate as it will allow us to benefit from their vast expertise in real estate development,” said Jaime C. González, Vice Chairman and President, Arthaland.
Revenues fell 18% to P886 million as against the P1.081 million recorded during the same period last year. The drop in revenues is substantially aligned with management’s expectation following the temporary impact of the COVID-19 pandemic on operations.
“We expect recovery in the following periods and we continue to retain project target delivery dates as we have built-in sufficient flexibility in our timelines and because we have chosen to work with the top tier general contractors. In particular, the handover to buyers of Phase 1 of Cebu Exchange is on track by the 4th quarter of this year. Similarly, for the Savya Financial Center and Sevina Park, we have worked closely with our contractors to recover from any delays resulting from the temporary closure of the construction site following the ECQ,” said González.
Arthaland’s financial position remains very strong as major capital raising efforts were completed earlier in the year, allowing for a very favorable liquidity position to more than adequately support all projects. Cash balances increased to P4.7 billion, as against P1.2 billion in year-end 2019, and the company continues to maintain conservative leverage levels following prudent financial management policies and other risk mitigation strategies in place. The Arthaland Century Pacific Tower continued to be the main source of Arthaland’s recurring income and delivered valuation gains in H1 2020.
