IDC yearly income surges 87% to P59.9 M

Published April 27, 2018, 12:00 AM

by manilabulletin_admin

By James A. Loyola

Green developer Italpinas Development Corporation (IDC) reported an 87 percent jump in net income to P59.9 million last year from the P32 million it earned in 2016.

In a statement, IDC chairman and Chief Executive Romolo Nati said “the remarkable increase, while modest compared to the earnings of larger real estate companies, signifies dynamic growth for IDC.”

“It was mainly due to the ability of the company to meet its sales targets while keeping its direct cost at manageable level,” Nati added.

The gain on appreciation in fair market value of IDC’s investment properties amounting to P81.84 million also helped boost its net income.

IDC’s gross income over sales for the 12 months’ operation improved to 64.4 percent, better than the gross profit rate of 58.57 percent in 2016.

Nati said revenues for 2017 came from realized income of its Primavera City Phase 1  mixed-use condominium buildings which is comprised of twin towers with eleven storys and situated adjacent to the SM City mall at Pueblo de Oro Business Park, Uptown Cagayan de Oro City.

To date, 85 percent of Primavera City (Tower A) was equivalent to 119 residential units out of the 140 saleable units.

Owing to this favorable sales performance, IDC recently opened up Primavera City Tower B for sale, As a result of pre-sales, 40 percent of saleable units in Tower B have been sold, equivalent to 57 residential units out of 141 available units.

Total resources of IDC grew by 24.70 percent to R984 million as of December 31, 2017 from P789 million as of December 31, 2016.

IDC President, Atty. Jose D. Leviste III said “the company’s cumulative shareholders equity reached more than P404 million, up from as against the full year of R344 million in 2016.”

He added that, “IDC’s current ratio registered at 1.15. Its debt to equity ratio remains robust at 1.43x while assets to equity ratio posted at 2.43x.”

Phase 1 of Primavera City  (which consists of seven buildings that will be constructed over four phases of development in Uptown Cagayan de Oro City) is partially funded by the Development Bank of the Philippines.

The project, which started construction in September 2016 is slated to be completed before the end of 2018.