PTFC earnings plunge in March-May

EARNINGS of PTFC Redevelopment Corp. was sliced by more than half in the March to May period, despite a 12.3% increase in revenues due to higher lease and occupancy rates.

In a regulatory filing posted on Friday, the leasing firm reported a net income of P11.24 million in the third quarter ending May 31. This is 60% lower than the P28 million it generated in the same period a year ago. The company’s fiscal year ends in August.

The increase in revenues to P41.81 million was not enough to offset the sharp decline in other income for the period, which stood at P6.28 million compared to the P31.2 million in the same period in 2016. The gap was primarily due to the P25-million compromise settlement it reached with Robinsons Supermarket Corp. (RSC).

The company’s wholly owned subsidiary Baesa Redevelopment Corp. filed a complaint against RSC in August 2012 for breach of contract with damages regarding the tenant’s breach of the pre-termination clause in a leasing contract dated March 18, 2009.

With this, the company’s net income for the nine months ending May is now at P43.72 million, 11.21% lower year on year. Revenues, meanwhile, showed a 12.34% gain to P126.95 million.

Formerly known as the Philippine Tobacco Flue-Curing and Redrying Corporation, the company changed its primary purpose to that of a real estate firm in 2014 while terminating its tobacco businesses.