Prime Orion Philippines, Inc. (POPI) posted consolidated revenues of P691.4 million for the year ended June 2015 with our property management and insurance business contributing 94% of the total. FLT Prime Insurance Corporation’s business grew by 6% vs. same period last year while Tutuban Properties, Inc.’s (TPI) overall occupancy slightly improved. Rental revenue was lower with the easing up of average rental rates. Lepanto Ceramics, Inc. continued to generate cash flows from remaining operations and was able to increase cash position to P94.9 million.
POPI ended the year with a consolidated net loss of P262.2 million including an impairment loss of P236 million to account for the decline in value of 1.388 billion shares of Cyber Bay Corporation. Reported net income in fiscal year 2014 of P205.9 million was due to the recognition of recovery from insurance and gain on sale of Available-for-Sale financial assets.
Group’s Plan Onwards
In March and June, the Philippine National Railways (PNR) turned over to TPI a total of 8.8 hectares of combined land and air rights of the leased property (Phase II-A). With these turnover, TPI now has control of more than 17 hectares of the 20-hectare PNR property which is vital to the redevelopment of Tutuban Center and its integration with the North South Railway Project (NSRP) of the Department of Transportation and Communications and the PNR.
In August 2015, POPI and Ayala Land, Inc. (ALI) entered into an Agreement to Subscribe whereby ALI will subscribe to 2.5 billion common shares of stock POPI (equivalent to 51.36% equity interest in POPI), subject to certain terms and conditions. The entry of ALI will provide the expertise and resources that will optimize the development of POPI’s property assets, particularly Tutuban Center. The immediate focus of the planned redevelopment of the entire 20-hectare property will now include the Tutuban Transfer Station which will serve as the interconnection for the government’s NSRP and the LRT 2 West Station extension.