Prime Orion Philippines, Inc. (POPI) posted consolidated revenues of P1,037.1 million for the year ended June 2016 mainly attributable to the sale of land in Sto. Tomas, Batangas, J.P. Rizal St., Makati City and Mandaue City. Rental revenue improved by 13% compared to last year owing to the 4% improvement in overall occupancy for Tutuban Center and increase in rental rates.
POPI ended the year with a consolidated net income of P12.96 million which includes an impairment loss of P236 million to account for the decline in value of 1.388 billion shares of Cyber Bay Corporation.
Total cost and expenses increased by 81% attributable to the increase in cost of real estate sales coupled by higher operating expense and cost of goods and services. Likewise, general provisions for clean-up activities were also recognized during the year.
Group’s Plan Onwards
In February 2016, POPI and Ayala Land, Inc. (ALI) entered into a Deed of Subscription whereby ALI subscribed to 2.5 billion common shares of stock POPI (equivalent to 51.06% equity interest in POPI), subject to certain terms and conditions at the price of P5.26 billion, from the increase in POPI’s authorized capital stock from P2.4 billion to P7.5 billion. On 4 July 2016, the Securities and Exchange Commission approved POPI’s increase in its authorized capital stock from P2.4 billion to P7.5 billion divided into 7.5 billion common shares, with par value of P1.00 per share.
The entry of ALI will provide the expertise and resources that will optimize the re-development of POPI’s property asset, Tutuban Center. Great changes and developments are expected for Tutuban Center which will be the site of the Tutuban Transfer Station, which will serve as interconnection for the government’s North South Railway Project and the LRT 2 West Station extension.
In order to ensure the viability of its business, the POPI Group will undergo a reorganization and will focus on its primary business which is real estate development.