Shang Properties income tanks as COVID pummels sales

Upscale realty firm Shang Properties Inc. said its net earnings tumbled to P84.09 million in the second quarter from P650.77 million as the coronavirus pandemic hammered sales.

Lower condo sales as well as the closure of its malls and hotel businesses due to the hard lockdown imposed by the government to stop the spread of the virus pushed SPI’s revenues down to P901.22 million from P2.77 billion.

This brings SPI’s six-month earnings to P700.24 million, 40.3% lower than the P1.17 billion recorded a year ago. Revenues declined 48.2% to P2.9 billion as condominium sales plunged to P938.8 million from P2.26 billion

Revenue from hotel operations fell by P895.1 million mainly due to lower occupancy and lower average daily rate caused by the ongoing travel restrictions and community quarantine.

Other income, however, more than doubled to P243.8 million due to higher interest on discounting of receivables of Shang Residences Wack Wack and higher gain on foreign currency revaluation.

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