COVER SHEET
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(Company's Full Name)
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(Business Address : No. Street Company / Town / Province)
MS. RACHELLE R. GATPANDAN
636-1170
Contact Person
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Month
Day
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Company Telephone Number
1
7
Q
FORM TYPE
Month
Day
Annual Meeting
N/A
Secondary License Type, If Applicable
Dept. Requiring this Doc.
Amended Articles Number/Section
Total Amount of Borrowings
Total No. of Stockholders
Domestic
To be accomplished by SEC Personnel concerned
1
Foreign
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-Q
QUARTERLY REPORT PURSUANT TO SECTION 17 OF THE SECURITIES
REGULATION CODE AND SRC RULE 17(2)(b) THEREUNDER
1. For the quarterly period ended September 30, 2013
2. Commission identification number 99905 3. BIR Tax Identification No. 000-188-233
4. Exact name of issuer as specified in its charter
PHILIPPINE REALTY AND HOLDINGS CORPORATION
5. Province, country or other jurisdiction of incorporation or organization PHILIPPINES
6. Industry Classification Code:
(SEC Use Only)
..........................................................................................................................................
7. Address of issuer's principal office
Postal Code
Andrea North Complex, Balete Drive cor. N. Domingo, New Manila, Quezon City
Satellite Office: E-512/513 East Tower, PSE Center, Exchange Rd., Ortigas Center, Pasig
8. Issuer's telephone number, including area code
(632) 636-1170/631-3179
9. The Registrant has not changed its corporate name and fiscal year. Prior to its transfer to
the above address the registrant held its office at 3rd Floor Magnitude Bldg., 186 E.
Rodriguez, Jr. Avenue, Quezon City
10.Securities registered pursuant to Sections 8 and 12 of the Code, or Sections 4 and 8 of the
RSA
Title of each Class
Number of shares of common
stock outstanding and amount
of debt outstanding
Common
4,922,324,908 shares
11. Are any or all of the securities listed on a Stock Exchange?
Yes [ X ] No [ ]
If yes, state the name of such Stock Exchange and the class/es of securities listed therein:
Philippine Stock Exchange
2
rz. lndicate by checl< marl< whether the registrant:
(a)
has filed all reports required to be filed
by section r7 of the code and 5RC Rule r7
thereunder or sections rt of the RSA ind
nin nutu r(a)-r thereunder, and
sections z6 and 't4t of the corporation
code of the pnirippin"r, during the
preceding twelve (lz) months (or
for such shorter period the registrant was
required to file such reports)
yes
[X]
No
I
J
(b) has been subject to such firing requirements
for the past ninety (9o) days.
yes
[x]
ruo
[
]
PART I-FINANCTAL INFORMATION
Item r. Financial Statements.
A copy of the comparative statements
as of and for the quarters ended september
30' 2013 and 2ot2, is submitted as part of this report.
The financial statements were
prepared in accordance with accounting
standards generally accepted in the
Philippines' The accounting policies
and riethods of computations followed
in the
interim financial statemenis are the
,m.
.o*pared
with
the
audited
financial
statements for the period ended
December 3r, rorrr.
changes affecting balance sheet
and income statement items are further
disclosed in
the Management Discussion and Analysis.
There are no material events subsequent
to the end of the interim period that have
not teen refrected in the financiar
statements for.tle interim period.
The compary il rectassified accounts
such as
dividends, capitar and foreign exchang"
g"inr, ini"."ra, and equity earnings to
investment income during thJperiod.
fil"i;ffnagementrs
Discussion and Analysis
of
Financiat condition and Results
of
Refer to the Tli:d.quarter Analysis
of unaudited consolidated Financial statement
attached as Exhibit l, comparative
Financialsoundness Indicators as
Exhibit ll, and
Business Segments as Exhibit
ilt.
SIGNATURES
o
code, the issuer has dury
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.
Amador C. Bacani
President
November oB,2o1j
s
e
o
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-a/4,rt
Robirose tu. n#ot
Vice-pres ident Finance/Adm in
November oB, zor3
PHILIPPINE REALTY AND HOLDINGS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Unaudited
September 30
2013
ASSETS
Cash and cash equivalents
Financial Assets
Trade and other receivables - net
Trading investments
Available-for-sale investments
Held to maturity investments
Prepayments and other current assets - net
Real estate inventories
Real estate held for sale and development - net
Investments in and advances to associates - net
Investments in joint ventures - net
Investment property
Property and equipment - net
Deferred tax assets
Goodwill
LIABILITIES AND EQUITY
Trade and other payables
Unearned income
Funds held in trust
Unearned premiums
Retirement benefit obligation
Deferred tax liabilities
Funds held for reinsurers
Equity
Capital stock
Reserves
Deficit
Treasury stock
Equity Attributable to Equity Holders of the Parent
Minority interest
See Notes to Consolidated Financial Statements.
Audited
December 31
2012
427,947,280
P 569,014,062
573,179,985
25,702,649
158,952,133
65,842,307
241,259,525
985,475,846
899,518,696
222,667
61,078,738
389,428,646
62,004,444
20,301,195
5,374,610
3,916,288,722
739,491,593
20,502,751
324,389,699
50,308,581
195,665,329
857,339,901
899,518,696
222,667
60,142,943
386,654,919
63,367,088
20,301,194
5,374,610
P4,192,294,033
293,739,789
115,589,476
653,087,170
45,949,556
57,661,290
11,042,649
1,917,930
1,178,987,862
P 357,189,181
143,387,726
653,087,170
49,655,207
52,516,210
11,042,650
3,674,080
1,270,552,224
4,493,915,266
226,722,201
(1,848,659,519)
2,871,977,948
(163,383,895)
2,708,594,053
28,706,807
2,737,300,861
P3,916,288,722
4,493,913,645
385,547,010
(1,817,642,318)
3,061,818,337
(163,383,895)
2,898,434,442
23,307,367
2,921,741,809
P4,192,294,033
PHILIPPINE REALTY AND HOLDINGS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Nine Months Ended September 30
2013
2012
Income
Sale of condominium unit
Rent
Net underwriting income
Management fees
Commission
Interest
Miscellaneous income
Costs and Expenses
Cost of condominium units sold
General and administrative
Loss on sales cancellation
Finance Costs
Interest expense
Income (Loss) Before Tax
Income Tax Expense (Benefit)
Net Income (Loss)
Attributable to:
Equity holders of the parent
Minority interest
153,120,385
19,030,208
22,607,388
18,719,437
4,295,960
11,382,438
2,067,600
231,223,415
171,351,067
17,269,554
27,379,364
17,775,979
5,770,924
12,788,946
12,412,033
264,747,867
143,560,439
117,025,312
260,585,751
149,293,336
123,825,045
273,118,381
(29,362,336)
921,225
(30,283,561)
(8,370,514)
727,672
(9,098,186)
(31,017,201)
733,640
(30,283,561)
(11,699,345)
2,601,159
(9,098,186)
(165,276,403)
(195,559,964)
10,149,000
1,050,814
(0.006359)
(0.006359)
(0.002398)
(0.002398)
Other Comprehensive Income
Unrealized holding gain(loss) on AFS investments
Total Comprehensive Income (Loss)
Income per share
Basic
Diluted
Number of shares outstanding
Basic (net of treasury stock 125,644,005)
Diluted (net of treasury stock 125,644,005)
4,877,907,002
4,877,907,002
4,877,907,002
4,877,907,002
PHILIPPINE REALTY AND HOLDINGS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Third Quarter Ended September 30,
2013
2012
Income
Sale of condominium unit
Rent
Net underwriting income
Management fees
Commission
Interest
Miscellaneous Income
Costs and Expenses
Cost of condominium units sold
General and administrative
Loss on sales cancellation
Finance Costs
Interest expense
Income (Loss) Before Tax
Income Tax Expense (Benefit)
Net Income (Loss)
Attributable to:
Equity holders of the parent
Minority interest
32,577,954
6,301,105
5,481,936
6,362,139
1,052,082
3,936,130
(42,939)
55,668,407
63,236,570
5,864,580
9,573,079
5,991,331
2,100,571
3,039,154
2,313,135
92,118,422
37,171,878
38,513,790
75,685,667
63,193,071
47,670,519
110,863,591
(20,017,260)
312,654
(20,329,914)
(18,745,168)
326,821
(19,071,989)
(20,136,404)
(193,511)
(20,329,914)
(19,696,153)
624,163
(19,071,990)
(152,416,880)
(172,746,794)
(1,618,460)
(20,690,450)
(0.004128)
(0.004128)
(0.004038)
(0.004038)
Other Comprehensive Income
Unrealized holding gain(loss) on AFS investments
Total Comprehensive Income (Loss)
Income per share
Basic
Diluted
Number of shares outstanding
Basic (net of treasury stock 125,644,005)
Diluted (net of treasury stock 125,644,005)
4,877,907,002
4,877,907,002
4,877,907,002
4,877,907,002
PHILIPPINE REALTY AND HOLDINGS CORPORATION AND SUBSIDIARIES
STATEMENTS OF CHANGES IN EQUITY
For the Nine Months Ended September 30
Notes
Capital Stock
2013
2012
3,688,679,636
-
3,688,679,636
-
3,688,679,636
3,688,679,636
1,314,901,371
509,780,492
1,314,901,371
509,782,113
805,120,879
805,119,258
114,751
114,751
4,493,915,266
4,493,913,645
250,000,000
660,988
250,660,988
250,000,000
660,988
250,660,988
119,770,865
(158,826,175)
105,039,395
10,514,690
(39,055,310)
115,554,085
15,116,523
13,451,903
25
Authorized 8,000,000,000 common shares
Issued and outstanding 3,688,679,636 shares in 2013;
3,687,461,960 shares in 2012
Capital stock, December 31
Issuance of capital stock
Subscribed capital stock 1,314,901,371 shares in 2013;
1,316,119,047 shares in 2011
Less: Subscription receivable
Additional paid-in capital
Capital stock, September 30
Reserves
Appropriated retained earnings for
Treasury stock acquisition
Catastrophe loss
Unrealized holding gain (loss) on avilable-for-sale investments
Balance, beginning
Unrealized holding gain (loss)
Balance, end
Revaluation of property and equipment
Balance,beginning
Transfers to retained earnings from depreciation valuation
reserves
Balance,end
-
-
15,116,523
13,451,903
226,722,202
379,666,976
Deficit
Balance, beginning
Net income (loss)
(1,817,642,318)
(31,017,201)
(1,821,942,766)
(11,699,345)
Balance, end
(1,848,659,519)
(1,833,642,111)
Treasury Stock
2,871,977,949
(163,383,895)
3,039,938,510
(163,158,652)
2,708,594,055
2,876,779,858
23,307,367
4,665,800
733,640
19,317,604
2,270,624
2,601,159
Minority Interest
Balance, beginning
Additional investment
Share in net income
Share in fluctuation of market value
of investments in shares of stocks
See Notes to Consolidated Financial Statements.
-
190,118
28,706,807
24,379,505
P2,737,300,861
P2,901,159,363
PHILIPPINE REALTY AND HOLDINGS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Nine Months Ended September 30
2013
2012
Cash flows from Operating Activities
Net Income
Adjustments for:
Prior Period Adjustment
Equity in net losses (earnings) of subsidiaries and affiliates
Depreciation and amortization
Provision for tax
Minority Interest
Gain ( Loss ) from operations before working capital changes
Decrease (Increase) in:
Real estate inventories
Real estate held for sale
Receivables
Prepayments and other current assets
Increase (Decrease) in:
Accounts payable and accrued expenses
Funds Held in Trust/ for Reinsurers
Unearned premiums
Finance Lease Obligation
Deferred Tax Liability
Retirement Benefit Obligation
Unearned Income
Loans Payable
Net cash used in operating activities
Cash Flows from Investing Activities
Decrease (Increase) in:
Other assets
Deferred Tax Assets
Computer Software
Investments in joint venture
Held to maturity investments
Investments and advances
Trading Investments
Available-for-sale investments
Investment Property
Net disposals (additions) to property and equipment
Net cash from investing activities
Cash Flows from Financing Activities
Proceeds (payments) of bank loans - net
Increase in capital stock
Unrealized holding gain (loss) on available-for-sale investments
Transfer to consolidated statements of income on sale
of available-for-sale invetsments
Revaluation of property and equipment
Reserve for fluctuation in MV of investment in stocks
Increase(decrease) in minority interest
Treasury stock transactions
Net cash from (used in) financing activities
Net Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents, Beginning
Cash and Cash Equivalents, End
(31,017,201)
7,790,135
733,640
(22,493,426)
(11,699,345)
20,585,713
2,601,159
11,487,526
(128,135,945)
(0)
166,311,608
(45,594,196)
(424,386,581)
503,244,245
(5,042,791)
(1,134,077)
(63,449,392)
(1,756,150)
(3,705,651)
28,401,156
4,146,227
(6,121,914)
(1)
5,145,080
(27,798,250)
1
218,271
(121,476,322)
110,812,063
(1)
(935,795)
(15,533,726)
0
(5,199,898)
165,437,566
(2,773,727)
(6,427,491)
134,566,927
(9,790,004)
10,535
(1,967,500)
(51,128,754)
13,058,012
(15,684,338)
(65,502,049)
1,621
(158,824,809)
4,665,801
(0)
(154,157,387)
(141,066,782)
569,014,062
427,947,280
24,945,983
2,460,744
225,243
27,631,970
72,941,982
443,320,122
516,262,104
PHILIPPINE REALTY AND HOLDINGS CORPORATION
AGING OF ACCOUNTS RECEIVABLE-TRADE
AS OF SEPTEMBER 30, 2013
PARTICULARS
PRHC
PPMI
CURRENT
OVER DUE
31-60 DAYS
UTC
GRAND TOTAL
OVER 91 DAYS
TOTAL
133,303,352
41,329,952
350,000
322,215,347
497,198,651
503,776
503,776
60,648
899,353
1,967,554
TIBI
MAC
61-90 DAYS
10,840,049
3,299,767
1,971,264
5,044,259
10,840,049
38,130,970
409,212
137,516,107
48,446,260
409,212
43,804,993
16,294,956
361,245,670
558,861,726
(0)
Accounts Receivable - Trade
Accounts Receivable - Others
Total
558,861,726
14,318,259
573,179,985
-
Exhibit I
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE FIRST NINE (9) MONTHS OF 2013
The Company posted a net loss of P30.28 million and P9.10 million for the first nine months of 2013 and 2012,
respectively; of which loss of P31.02 million and P 11.70 million, are attributable to equity holders of the Parent
Company. Sale of condominium units dropped by 10.64% from P171.35 million in 2012 to P153.12 million in 2013 due
to lower recognized sales for Skyline and Icon Plaza towers during the period. Rent income increased by 10.20% from
P17.27 million in 2012 to P19.03 million in 2013 due to escalation of contract price. Net underwriting income went
down from P27.38 million to P22.61 million due to lesser bookings by Meridian Assurance Corporation (MAC).
Management fees by subsidiary PRHC Property Managers, Inc. (PPMI) rose by 5.31% due to escalation in fees and new
clients. Commission income dropped from P5.77 million in 2012 to P4.30 million in 2013 due to lower premiums
written during the year. Interest income dropped to P11.38 million in 2013 from P12.79 million in 2012 due to usage
of some invested funds for Skybreeze Tower. Miscellaneous income, on the other hand, decreased to P2.07 million in
2013 from P12.41 million in 2012.
General and administrative expense decreased from P123.83 million in 2012 to P117.03 million in 2013 as the net
effect of the decrease in payment of condominium dues and realty taxes on account of turned-over Skyline units as
well as lower marketing and selling expenses due to lesser units available for sale, and the additional provision for
retirement both for the Parent and subsidiary, Tektite Insurance Brokers, Inc. (TIBI).
The table below shows the material change from period to period in the Statement of Comprehensive Income.
Material shall refer to changes or items amounting to five percent (5%) of the relevant accounts.
Sale of condominium units
Rent
Net underwriting income
Management fees
Commission income
Interest income
Miscellaneous income
Cost of condominium unit sold
General and administrative expense
Vertical
Analysis
2013
2012
66.22%
64.72%
8.23%
6.52%
9.78%
10.34%
8.10%
6.71%
1.86%
2.18%
4.92%
4.83%
0.89%
4.69%
62.09%
56.39%
50.61%
46.77%
Inc./ (Dec.)
2013 vs. 2012
(18,230,682)
1,760,654
(4,771,976)
943,458
(1,474,964)
(1,406,508)
(10,344,433)
(5,732,897)
(6,799,733)
Horizontal
Analysis
2013
(10.64%)
10.20%
(17.43%)
5.31%
(25.56%)
(11.00%)
(83.34%)
(3.84%)
(5.49%)
Trade and other receivables comprise 14.64% of the total assets as of September 2013. It dropped by 22.49% from
2012 level, brought about by recoupment of advances from contractors and collection of receivables both by the
Parent Company and subsidiary, MAC.
Trading investments increased by 25.36% due to additional investments made by subsidiary, MAC.
Available-for-sale investments dropped by 51% due to adjustment in market prices of investments and termination of
debt securities of subsidiary, Universal Travel Corp. (UTC), as at end September 2013.
Increase of Held to maturity investments by 30.88% was due to additional investment in Treasury bills by MAC.
Prepayments and other current assets increased by 23.30% due mainly to the creditable tax remittance for Skyline
units and input taxes from purchase of goods and services from various contractors for the Skybreeze Tower of the
Parent Company.
Real estate inventories increased by 14.95% as the net effect of ongoing construction cost for Skybreeze Tower and
the recognition of cost of sold units at Skyline Tower and Icon Plaza.
Trade and other payables decreased by 17.76% on account of lower customer deposits from decreasing Skyline sales
and release of retention to Skyline contractors by the Parent Company, as well as decrease in premiums ceded to
reinsurers and claims outstanding due to fire loss by our subsidiary, MAC.
Unearned income dropped by 19.39% since additional sold units for Icon Plaza Towers were recognized as revenues
based on the percentage of completion as of September 2013.
Unearned premiums decreased by 7.46% from 2012 level due to lesser booked premiums of MAC.
Retirement benefit obligation rose by 9.80% due to additional provision for retirement both for the Parent Company
and subsidiary, TIBI.
Funds held for reinsurers decreased from P3.7 million to P1.9 million due to prompt release of premiums collected
on behalf of reinsurers in the latter part of 2013.
The table below shows the material change from period to period in the Statement of Financial Position. Material
shall refer to changes or items amounting to five percent (5%) of the relevant accounts.
Cash and cash equivalents
Trade and other receivables
Trading investments
Available for sale investments
Held to maturity investments
Prepayments and other current
assets
Real estate inventories
Trade and other payables
Unearned Income
Unearned premiums
Retirement Benefit Obligation
Funds held for reinsurers
Vertical
Analysis
2013
2012
10.93%
13.57%
14.64%
17.64%
0.66%
0.49%
4.06%
7.74%
1.68%
1.20%
6.16%
4.67%
25.16%
7.50%
2.95%
1.17%
1.47%
0.05%
20.45%
8.52%
3.42%
1.18%
1.25%
0.09%
Inc./ (Dec.)
2013 vs. 2012
Horizontal Analysis
(141,066,782)
(166,311,608)
5,199,898
(165,437,566)
15,533,726
45,594,196
2013
(24.79%)
(22.49%)
25.36%
(51.00%)
30.88%
23.30%
(128,135,945)
(63,449,392)
(27,798,250)
(3,705,651)
5,145,080
(1,756,150)
14.95%
(17.76%)
(19.39%)
(7.46%)
9.80%
(47.80%)
The consolidated stockholders’ equity as of end September 2013 stood at P2.74 billion.
Top Five Performance Indicators
Gross Revenue
Current Assets
Current Ratio = Current Liabilities
Liabilities
Debt-to-Equity Ratio= Equity
Book value per share=SHE + Subs. Rec.
#
of
shares
outstanding
Earnings
Before
Interest,
Tax,
Depreciation and Amortization
2012
2013
P 217,773,377.93
2,478,359,727
1,108,365,992 = 2.24
0.00
3,218,374,545
4,877,907,002
(P 32,954,639)
P 239,546,888.00
2,302,641,606.00
841,188,950.00 = 2.74
0.00
= .66
3,386,561,971
4,877,907,002 = .69
( P573,747)
Gross revenue includes sale of real estate, rent, commission, management fees and underwriting income. The
increase in leased areas, rental rates and number of customers contribute significantly to the cash inflows of the
Company. The Company’s current ratio is at 2.24 and 2.74 for 2013 and 2012, respectively. As of September, the
Company’s debt-to-equity ratio remains at zero. Book value per share is at 0.66 and 0.69 in 2013 and 2012,
respectively.
There were no issuances, repurchases and repayments of neither debt and equity securities nor dividends paid
during the interim period. MAC distributed P32.97 and P40.00 million stock dividends last June 2012 and May 2013,
respectively. The dividends form part of the increase in capitalization by MAC from P125 million end of 2011 to P175
million end of 2012, and to P250 million end of 2013.
Segment revenue and segment result for business segments or geographical segments is presented as Annex IV of this
report.
The Company filed with the court a petition for corporate rehabilitation with prayer for suspension of payments in
2002. Settlement has been reached with all the five creditor banks through dacion en pago, cash payments from
the sale of assets and loan restructuring. The Company completed another major component of the rehabilitation
plan which is the completion of the construction of the Andrea North Skyline Tower. This led to the Company’s filing
of the Motion to terminate rehabilitation proceeding on account of successful implementation of the Rehabilitation
Plan last February 2011. The Rehabilitation Court denied our petition on the account that the Company has still
substantial obligation to settle per Rehabilitation Plan.
On July 16, 2012, the Company received a Writ of Execution from the RTC of Makati on the case of Ley Construction
and Development Corporation (LCDC) vs. PRHC wherein the company was ordered to pay LCDC the sum of P57
million plus legal interest from the time of filing of the case. As the Company is still under Rehabilitation, the case
is now under the jurisdiction of the Rehabilitation Court.
Planning and redesigning of the next tower at Andrea North Towers to be called “Skybreeze”, is in its final stages.
Construction of the joint venture project, Icon Plaza in the Bonifacio Global City with Xcell Property Ventures, which
commenced mid 2010 is ongoing.
As of this report, there are no other known events that will trigger direct or contingent financial obligation that is
material to the Company. Moreover, there are no material off-balance sheet transactions, arrangements, obligations
and other relationships of the company with unconsolidated entities or other persons created during this period.
The Group’s activities expose it to a variety of financial risks. The Group’s overall risk management program seeks
to minimize potential adverse effects on the financial performance of the Group. The policies for managing specific
risks are summarized below:
FINANCIAL RISK MANAGEMENT
Foreign Exchange Risk
The Company has foreign curency denominated receivable from its associate, Alexandra, USA amounting to $3.01
million which has already been fully provided for impairment due to uncertainty of collection. The sensitivity rate
used in reporting foreign currency risk internally to key management personnel is 10% and it represents
management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis
includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period
end for a 10% change in foreign exchange rates.
Credit Risk
The Group’s credit risk is primarily attributable to its trade and other receivable and advances to associates. The
Group has adopted stringent procedure in extending credit terms to customers and in monitoring its credit risk.
The Group has no significant concentration of credit risk. It has policies in place to ensure that services are
rendered to customers with an appropriate credit history. The Group’s exposure to credit risk arises from default
customer, with a maximum exposure equal to carrying amount of the related receivables particularly those relating
to its leasing operations.
Interest Rate Risk
Interest on loans payable were arranged at fixed interest rates as stated in the amended rehabilitation plan,
eliminating the possible exposure of the Group to fair value interest rate risk fluctuation. The Group has no
outstanding loans
Liquidity Risk
The Group maintains adequate highly liquid assets in the form of cash and cash equivalents to assure necessary
liquidity. Free cash flows have been restricted primarily for the settlement of the Parent’s Company’s debt
obligation, in conformance with the rehabilitation plan.
In compliance with SEC Memorandum Circular No. 3, Series of 2011 in which the adoption has been deferred by the
Financial Reporting Standard Council (FRSC) to January 1, 2015, the Company decided not to early adopt PFRS 9 for
their 2013 financial reporting and hereby provides the following information in our interim FS as of September 30,
2013:
i)
After consideration of the result of its impact evaluation, the Company has decided not to early adopt
PFRS 9 for its annual reporting;
ii) It shall conduct in early 2014 another impact evaluation using the outstanding balance of FS as of
December 31, 2013;
iii) A statement that the Company’s decision whether to early adopt either PFRS for its 2014 financial
reporting shall be disclosed in its interim FS as of December 31, 2013. The Company shall, likewise,
state that if the decision of the company will be to early adopt the subject standard for its 2014
financial reporting, its interim reports as of March 31, 2014, will already reflect the application of the
requirement under the said standard and will contain a qualitative and quantitative discussion of the
results of the company’s impact evaluof December 2013n.
Likewise, in compliance with SEC Memorandum Circular No. 6, Series of2013 the company has recognized
the impact of the pertinent new standards enumerated below.
Per our final analysis, the following standards will be applicable to the company:
Standard
Applicable
i. Separate Financial Statements PAS 27 (Amended)
Yes
ii. Investments in Associate and Joint Ventures PAS 28
Yes
iii. Government Loans (Amendments to PFRS 1)
N/A
iv. Disclosure-Offsetting Financial Assets and Financial Liabilities
(Amendments to PFRS 7)
N/A
v. Consolidated Financial Statements (PFRS 10)
Yes
vi. Joint Arrangements (PFRS 11)
Yes
vii. Disclosure of Interests in Other Entities (PFRS 12)
Yes
viii. Fair Value Measurement (PFRS 13)
Yes
These relevant standards will only require additional disclosures and will have no material impact on the December
2013 audited financial statements of the Company. For the impact of PAS 19 amendment, our actuary is currently
updating the actuarial report and we will disclose the impact in the year-end reporting.
Total Revenues/
Ave. Total Assets
Asset Turnover:
Shows efficiency of asset used in
operations
Interest Rate Coverage Ratio:
Determine how easily a company
can pay interest on outstanding debt
EBIT/
Interest Expense
Liabilites (Loans Payable)
Total Equity
Net Income(Loss)/
Total Revenues
Net Profit Margin:
Shows how much profit is made for
every peso of revenue
Leverage Ratio (D/E Ratio):
Measure of how much of a company's
assets are funded through borrowing
and how much through equity
Current Assets/
Current Liabilities
Current Ratio:
Indicates ability to cover short term
obligations
PHILIPPINE REALTY AND HOLDINGS CORPORATION
FINANCIAL SOUNDNESS INDICATORS
(32,954,639)
-
0
2,737,300,861
231,223,415
4,054,291,377
(30,283,561)
231,223,415
2,478,359,727
1,108,365,992
0
0
0.06
-13.10%
2.24
2013
(8,370,514)
-
0
2,901,159,363
264,747,867
4,000,879,998
(9,098,186)
264,747,867
2,302,641,606
841,188,950
0
0
0.07
-3.44%
2.74
2012
Exhibit II
(45,001,039)
8,465,446
36,632
Segment Result
Interest expense/Bank charges
Interest income
Dividend income
Equity in net income of
subsidiaries
Income taxes
Income before minority interest
Minority interest
Net Income
Other Information
Segment assets
Investment at equity method
Unallocated corporate assets
Consolidated Total Assets
Segment liabilities
Unallocated corporate liabilities
Consolidated Total Liabilities
Capital expenditure
Depreciation
Non-cash expenses other than
depreciation
1,982
3,449,829,426
172,803,471
9,442,813
3,632,075,710
999,116,334
572,133
999,688,467
1,613,820
3,441,901
-
172,150,592
Revenue
Sale of Real
Estate and Leasing
26,613,188
26,613,188
12,456,040
1,325,839
13,781,879
7,724
698,529
30,143,720
3,496,118
33,639,838
19,129,137
19,129,137
108,149
167,556
-
11,553
1,134
-
(401,560)
3,791,390
Insurance
Brokerage
1,672,793
18,719,437
Property
Management
PHILIPPINE REALTY AND HOLDINGS CORPORATION AND SUBSIDIARIES
BUSINESS SEGMENTS
AS OF SEPTEMBER 30, 2013
7,362,264
407,562,073
125,345,835
9,144,677
134,490,512
4,722,399
3,382,104
400,199,809
-
1,958,232
2,755,678
1,312,134
22,607,388
Underwriting
28,178,069
53,386,898
53,386,898
(24,599)
100,045
28,178,069
148,626
(1,040,799)
504,570
Travel
Services
-
718,833
718,833
Other
Income
-
-
(41,489,032)
(211,780,158)
(41,489,032)
(38,196,937)
(173,583,221)
Elimination
1,982
3,896,767,276
(779,750)
20,301,195
3,916,288,722
1,167,945,212
11,042,649
1,178,987,861
6,427,491
7,790,135
(42,093,540)
11,382,438
1,348,766
(921,225)
(30,283,561)
733,640
(31,017,201)
218,492,211
Consolidated
Exhibit III