LISTED firm LFM Properties Corp. on Thursday reported a net loss of P6.94 million in the second quarter, reversing its P4.66-million gains in the same period last year.
In its financial statement, the company registered a top line of P45.98 million, down 19.9% from the P57.41 million reported the previous year.
During the three-month period, the company recorded a 13.1% increase in operating expenses to P6.37 million from P5.63 million the prior year.
The company’s direct cost also rose by 16.7% to P22.07 million from P18.91 million in the same period last year.
In the first semester, the company reported a wider net loss of P24.05 million from the P14.48 million reported the prior year.
Its top line during the first semester fell by 22.7% to P87.48 million from P113.15 million the previous year due to the pretermination of the rental lease contract of one of the major tenants of the company.
The company’s cost of rental services went up by 12.6% to P42.79 million from the P38 million the prior year driven by the increase in electricity charges and outside services.
Operating expenses, likewise, increased to P11.93 million, up 9% from P10.95 million, due to the professional fee for the fairness opinion issued for the acquisition of Liberty Building.
Its parent company Liberty Flour Mills, Inc. announced earlier that it had sold the eight-story building to its property subsidiary for 27% of the asset value of Liberty Flour Mills.
The company said it expects to spend about P200 million in the next six months for land and building as an investment property.
“There are no known trends, events or uncertainties that have had or that are reasonably expected to have a material favorable or unfavorable impact on net sales or revenues or income from continuing operations,” the company said.
LFM Properties is primarily engaged in the real estate business in all its aspects, including development, acquisition, construction, consultation, and management. — Adrian H. Halili