LISTED real-estate company IRC Properties Inc. saw a significant increase in total income, which ballooned from merely P0.6 million in the second quarter of 2014 to a whopping P12.1 million in the same period this year.
For the year ending June 30, 2015, total revenue is higher by 145 percent, or P11.3 million to P19 million, from P7.7 million in the previous year to date.
The improved operational results could be mainly attributed to the sale of units in its joint-venture (JV) projects.
The company is currently focused on the development of its approximately 2,200-hectare property in Binangonan, Rizal, following its successful stock-rights offering in 2010 that generated a total amount of P400 million, followed by its alliance with Dreamhauz Management and Development Corp. (DMDC).
Both parties are developing a 150,000-square-meter land of the estate into a residential subdivision called Sunshine Fiesta Subdivision.
Out of the overall 869 units in this project, 103 units are assigned to IRC, which correspond to the 12-percent share of the company.
From this allocation, 84 have been sold, including one-cash sale by end of June 2015.
Total contract price of P55.2 million taken out from Home Development Mutual Fund (Pag-IBIG) and P664,200 from cash sale brings its total revenue to P55.9 million as of the given period. Meanwhile, 123 units out of 1,015-unit inventory in Fiesta Casitas Subdivision are given to IRC, equivalent also to its 12-percent share.
Revenues for these units will aggregate to P97.6 million, with an average sale of P800,000 each.
Five of the assigned number of units of this JV project with Dell Equipment and Construction Corp. have been already sold as of June 30 this year.
The contract amounting to P3.8 million from Pag-IBIG brings to total revenue of P3.8 million by the end of the sixth month of the year.
Last year the group entered into a JV deal with a foreign investor for the construction of a 4-hectare housing project—the third residential development within the same property.
As of June 30, 175 units have been reserved for P153.5 million.
Meanwhile, design planning for Eastridge residences is now on hold as potential investors are being eyed for the project. IRC is now in negotiation with a Japanese group, a possible partner to develop the condominium project.