Arthaland: 2024 growth to be driven by residential projects

Arthaland: 2024 growth to be driven by residential projects
SunStar Business

Property developer Arthaland ended the first quarter of this year with consolidated revenues of P984 million which reflects an 18 percent increase over revenues reported in the same period in 2023.

“Revenues are generally aligned with expectations for full-year 2024 during which Arthaland is expected to continue its growth with a marked shift towards residential projects as key contributors to revenues,” said Jaime González, Arthaland’s vice chairman and president, during the company’s annual stockholders’ meeting on June 28, 2024.

González announced that in the near term, the company’s line-up of new projects is largely composed of residential developments in high-growth urban areas while they continue to monitor developments in the office/commercial sector.

“The demand for residential developments remains strong, consistent with the continued economic growth and the fundamental need for housing among Filipinos,” he said.

Arthaland’s first-quarter net income stood at P138 million following gains from the increase in the value of investment properties.

About 71 percent of total revenues was contributed by the residential projects including Lucima, Eluria, Sevina Park Villas and the first tower of Una Apartments. The company’s first residential project in Cebu is a high-rise upscale condo tower named Lucima located inside Cebu Business Park.

According to González, the inclusion of Una Apartments among revenue contributors broadened the sources of demand across more market segments for Arthaland. He said this supports Arthaland’s long-term growth objectives.

“Our strategic decision to enter the broader mid-market segment is aligned with our vision of bringing the concept of ‘wealth of life’ to the greater community. We believe that access to world-class, sustainable products should be for everyone and should not be limited to the luxury and upscale market segments,” he said.

“In executing our plans to enter the mid-market segment, we ensure that we maintain our leading presence in the luxury and upscale segments and that we design our product offerings with the same quality and sustainability standards for which Arthaland is known,” he added.

Una Apartments is the company’s first entry into the broader mid-market segment.

Meanwhile, the contribution of the company’s office projects, Cebu Exchange and Savya, declined to about 17 percent of total revenues, as substantial take-up rates were already achieved for these projects at the start of the year.

Cebu Exchange is the company’s first office tower in Cebu City located along Salinas Drive in Lahug.


Moreover, the company is determined and on track to hit the 100 percent decarbonization goal by 2030.

“2030 is almost tomorrow. Achieving decarbonization is not an easy goal to achieve. However, through hard work, we have already achieved a lot toward this goal, and we are determined to make this happen,” said González.

To date, Arthaland Century Pacific Tower (ACPT), Arya Residences Tower 1 and Cebu Exchange are now sourcing 100 percent offsite renewable energy. ACPT has been certified Net Zero while Arya Tower 1 and Cebu Exchange are undergoing verification for the Net Zero certification. Arya Tower 2 and Savya will likewise shift to renewable energy.

By 2030, González said the company’s operational portfolio will expand to include Lucima, Eluria and Una Apartments Towers 1 and 2. These projects are all designed to achieve at least 40 percent energy savings compared to conventional buildings in their categories.

“To achieve full decarbonization, we will source energy requirements from renewable energy suppliers. Our management is committed to achieving all this by 2030,” he said.

2023 performance

Arthaland closed 2023 describing it as a banner year in terms of revenues, land acquisition and expansion into the broader mid-market segment.

“We successfully executed our high-growth strategy, achieved significant milestones for our projects, strengthened our culture of excellence and cemented our leadership in sustainability,” he said.

The company logged consolidated revenues of P6.6 billion which reflected a 127 percent increase over revenues in 2022. It also ended the year with a net income of P948 million, up 15 percent.

According to González, Arthaland demonstrated “a critical mass in terms of revenues which is over US$100 million, a benchmark for many institutional investors.” / KOC


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