Property

Philrealty feels lockdown pain, suffers loss in first half

Property developer Philippine Realty and Holdings Corp. slipped into a P22.6 million loss in the first six months of the year, hammered by the devastating effects of the coronavirus outbreak.

This is a reversal of the P38.9 million profit earned in the same period a year ago.

Revenues plummeted by 56% to P271.36 million as finance costs more than quadrupled to P16.82 million due to the additional loans incurred to finance the acquisition of investment properties.

For second quarter, Philrealty posted a P33.8 million loss compared to a net income of P20.4 million a year earlier due to the decrease in the number of units sold.

Real estate sales plunged by 63.6% in the first half, most of which came from units at Skyline and SkyVillas Towers located in Quezon City and the Icon Plaza in Bonifacio Global City.

“The very strict lockdown imposed in the second quarter of 2020 that started from the latter part of the first quarter had a huge negative and adverse impact on the company’s ability to sell its real estate inventories,” Philrealty said.

Rental income, on the other hand, increased by 5.3% due to additional tenants booked during the period resulting from the company’s decision to acquire more units for lease in 2019.

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