Swings to P261-M profit in 2007

Real estate developer Landco Pacific Corp. on Wednesday reported a turnaround in 2007 as the company recognized revenues from several high-end projects that neared completion.

In a briefing, company officials said that the unit of holding firm Metro Pacific Investments Corp. (MPIC) reversed a P12.9-million net loss registered in 2006 and ended up with a net income of P261.2 million last year.

The company said it would also invest as much as P3.6 billion in a set of new projects around the country.

Landco's change in fortunes mirrored a similar picture for its parent firm, which snapped a two-year losing streak via strong revenues in 2007.

"We are very pleased with our performance in 2007," said executive vice president and COO Francis V. Ceballos. "This remarkable outcome was the result of our conscious effort to complete development in our core products--leisure communities."

For 2007, the company--which touts itself as a specialist in "leisure development"--announced revenues of P1.92 billion, or 151 percent higher than the P629 million in revenues in 2006.

According to the company, the sharp spike in revenue growth was driven by the substantial completion in development of leisure and resort properties such as Amara en Terrazas, Terrazas de Punta Fuego, Playa Calatagan and Ponderosa Leisure Farms.

These projects accounted for 84 percent of the total revenues derived from real estate sales. Another 11 percent came from hometown communities such as Waterwood Park and Lakewood City.

This year, company officials said that Landco was preparing to develop a new set of projects along the conceptual lines of existing ones.

In the pipeline are Playa Laiya in San Juan, Batangas; Playa Azalea on Samal Island, Davao; Woodridge Garden Village in Zamboanga City; and WoodGrove Park in San Fernando, Pampanga.

Total investments in these projects for the company's 2008 pipeline are expected to hit P3.6 billion, company officials said.

Landco's present portfolio includes the development of high-end leisure, urban and hometown communities, hotels and resorts, malls and central business district complexes.

With the launch and marketing of new projects last year, Landco's operating expenses rose to P884.2 million from last year's P695.8 million, an increase of 27.1 percent.

Net financing income in 2007 increased to P171.4 million from P135 million in 2006.

Landco's core net income contribution to its parent company in 2007 amounted to P139.4 million, representing 50.2 percent of MPIC's total contribution from operations for the year.

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