Results of Operations
(Based on Financial Statements adopted in accordance with the Philippine Financial Reporting Standards)
Review of December 31, 2012 versus December 31, 2011
The Group posted an increase in its revenues as of December 31, 2012 by 15.51% year on year excluding the 2011 non-recurring gain on sale of investment. The consolidated net income as of December 31, 2012 amounted to Php7.41 billion while for the same period of 2011, consolidated net income amounted to Php5.98 net of the Php2.18 billion non-recurring gain from sale of investment. Consolidated total revenues is composed of real estate sales, rental income, hotel income and other revenues.
Among product portfolios, the bulk of generated consolidated revenues came from the sale of condominium units amounting to Php18.17 billion in 2012 compared to Php15.89 billion in 2011, an increase of 14.39%. The Group’s registered sales mostly came from the following projects: Eight Newtown Residence; One Uptown Residence; 8 Forbes Town Road; One Central; Two Central; One Eastwood Avenue; Eastwood LeGrand in Eastwood City; Morgan Suites; The Venice Luxury Residences in McKinley; Manhattan Heights in Quezon City; 81 Newport Boulevard and Newport City in Pasay.
Rental income contributed 16.35% to the consolidated revenue and amounted to Php4.99 billion compared to Php3.83 billion reflected last year, a 30.54% increase. Contributing to the growth are the escalation and completion of additional leasing properties and increase in demand for office space from BPO Companies.
The Group’s hotel operations posted an amount of Php462.31 million in 2012, an increase of 17.89%, from Php392.17 million in 2011. The increase is primarily due to the increase in hotel occupancy rates.
In general, the increase in cost and expenses by 13.16% from Php20.45 billion in 2011 to Php23.14 billion in 2012 was due mainly to the increase in recognized real estate sales, as well as marketing and selling expenses resulting from aggressive marketing activities and increase in other administrative and corporate overhead expenses. Income tax expense in 2012 amounting to Php2.25 billion resulted to a 12.79% increase from 2011 reported amount of Php2.00 billion due to higher taxable income.
There were no seasonal aspects that had a material effect on the financial condition or financial performance of the Group. Neither were there any trends, events or uncertainties that have had or that are reasonably expected to have a material impact on net sales or revenues or income from continuing operations. The Group is not aware of events that will cause material change in the relationship between costs and revenues.
There are no significant elements of income or loss that did not arise from the Group’s continuing operations.