Highlands Prime swings to profit

MANILA, Philippines - Sy-led upscale leisure estate developer Highlands Prime Inc. has swung to profit in the first half of the year, posting net earnings of P16.4 million on the back of higher real estate sales.

In a financial report submitted to the Philippine Stock Exchange, Highlands Prime said revenues grew 61 percent to P254.6 million, largely due to the contribution of the residential lot project which accounted for 58 percent of the total.

The remaining 42 percent came from sales of condominium and log cabins.

Gross profit surged 80 percent to P119.8 million owing to the contribution of the higher margin residential lot projects.

Other income, which primarily came from interest income and forfeited sales from cancelled sales, amounted to P16 million which is almost the same as 2011’s P16.8 million.

Total operating expenses reached P85 million, up six percent due to increased manpower cost and repairs and maintenance.

Interest expenses likewise expanded by 37 percent to P28.6 million mainly due to lower average lending rate and considerable reduction in the outstanding bank loans.

Highlands Prime said construction of Woodridge Place Phase 2, a condominium project at Tagaytay Highlands which boasts of a view of Taal Lake, is now in full swing.

Sierra Lago, a subdivision development launched in November 2010, is expected to be completed towards the third quarter of the year. Located at Tagaytay Midlands, Sierra Lago will offer 185 lots of approximately 200 to 300 square meter cuts.

Highlands Prime has earmarked P800 million for capital expenditures this year, mainly to develop the 27-hectare Aspenhills at the Tagaytay Highlands and phase 2 of Woodridge Place.

The company expects to generate around P1.3 billion from the sale of 182 lots at Aspenhills, which offer a breathtaking view of the mountains of Batangas and Laguna and the Canlubang Valley. The lots, with sizes ranging from 350,000 to 400,000 square meters, are priced at 14,000 to P15,000 per square meter.