Upscale property developer Arthaland Corporation of the Po family reported that its attributable net income fell 61 percent to P273.05 million in the first semester of the year from the P698.17 million earned in the same period of 2023.

Based on the firm’s latest financial report filed with the Philippine Stock Exchange, earnings fell by 76 percent to 135.52 million in the second quarter of 2024 from P562.1 million in the same period last year.

The drop in earnings was due to lower revenues, a slower decline in gross expenses, and higher finance costs.

Revenues for the first half dropped 23.7 percent to P2.57 billion from P3.37 billion in the same period last year, while gross expenses dipped by only 4.2 percent to P2.4 billion in 2024 from P2.5 billion in 2023.

Meanwhile, non-operating income rose 37.5 percent to P1.18 billion from P855 million last year as non-operating expense increased 35.8 percent to P713.13 million from P525.26 million.

For the second quarter of 2024, the firm’s revenue declined by 37 percent from P2.54 billion in 2023 to P1.59 billion in 2024 due to a change in the revenue mix between these periods, particularly the bulk sale of office units and parking slots at its Savya Financial Center recognized in the second quarter of 2023.

Arthaland reported a 34 percent jump in finance costs to P351 million in the second quarter of 2024 from P261.64 million in the same period last year due to the adoption of new accounting standard relative to non-capitalization of borrowing cost.

During the second quarter, the firm’s earnings were boosted by an eight percent increase in gain on change in fair value of investment properties to P518 million due to appraisal gain recognized for the office, and retail units and land properties of the Group.

It also saw a 23 percent increase in other income largely attributable to realized gain on disposals of financial assets, interest income and forfeited collections.