Empire East aims for double-digit profit growth

Credit to Author: KRISTA ANGELA M. MONTEALEGRE| Date: Wed, 25 Mar 2020 17:46:58 +0000

EMPIRE East Land Holdings Inc. is aiming for a double-digit growth in earnings because of robust demand.

On the sidelines of its annual stockholders’ meeting, Anthony Charlemagne Yu, Empire East president, told reporters that the company is expecting a banner year with profit projected to grow by 35 percent to 40 percent this year.

This translates to a profit of between P325 million and P350 million, exceeding last year’s P250 million. In the first quarter, the property developer’s net income inched up 8 percent to P25.17 million.

“We are optimistic about the earnings forecast considering we have launched new projects this year. With greater demand from the market, we expect continuous growth in earnings,” said Yu.

Reservation sales are expected to top last year’s record P10 billion with the company hitting a monthly sales average of P1 billion in the first half.

“We think that, conservatively, we can project a 25-percent increase in terms of our reservation sales,” said Yu. In the first three months, Empire East rolled out 4,700 residential units worth P12 billion.

Amid the buoyant economy, the company decided to withhold the issuance of dividends so it could use its retained earnings to fund construction of projects and undertake land-banking activities. The last time Empire East issued dividends was in March 2006 when it declared a 15-percent stock dividend.

Yu said Empire East was “open” to lease Food Terminal Inc., considered as one of the few large undeveloped areas in the metropolis, should the government abandon its plan to sell it.

“The original proposal is to purchase the property. If it were to be a lease, we will consider it,” Yu said.

Empire East earlier submitted a P14-billion bid to acquire the 103-hectare property.

The developer plans to acquire enough land for development over the next five to seven years to position the company for further growth. The company is open to tap new markets by venturing into other areas outside Metro Manila, Laguna and Cavite, where it has existing projects.

It will launch in the next few months three new residential phases in its transit-oriented developments such as Maple Heights in Pioneer Woodlands, Green Club Towers in Little Baguio Terraces and Madison Plaza Towers in San Lorenzo Place.

Another project in Pasig is in the pipeline, but Yu refused to elaborate on the development since Empire East is in the final stages of negotiation with the landowner.

Its shares rose to P0.74 on Tuesday from P0.72 each on Monday.