Empire East Land Holdings, Inc. posted a 41.1% drop in third-quarter attributable net income, which fell to P115.96 million from P196.75 million in the year-earlier period, as property sales weakened and revenues declined over the first nine months of 2026.

Consolidated net income after tax for the July-to-September quarter slid to P114.34 million from P194.90 million a year earlier, the property developer said in its quarterly financial disclosure to the Philippine Stock Exchange on Wednesday.

Nine-Month Results

For the January-to-September period, attributable net income declined 26.5% to P457.95 million from P623.40 million a year earlier. Consolidated net income after tax likewise fell 26.7% to P452.89 million from P618.05 million, while revenues shrank 18.1% to P3.23 billion from P3.94 billion.

Real estate sales, the developer's core line of business, dropped 27% to P2.06 billion from P2.82 billion a year earlier. The sales came from residential developments including The Paddington Place, Mango Tree Residences, Covent Garden, Pioneer Woodlands, The Cambridge Village, The Sonoma, California Garden Square, The Rochester Garden, San Francisco Gardens, and Greenhills Garden Square.

Cost of real estate sales declined to P1.04 billion from P1.67 billion, with its share of sales easing to 50.5% from 59.3% due to changes in the mix of properties sold, the company said. Gross profit from real estate sales consequently fell to P1.02 billion from P1.15 billion. The easing cost ratio cushioned the impact of the smaller sales base, but could not fully offset it at the gross-profit line.

Finance income decreased 42% to P286.35 million from P494.10 million, reflecting earnings from buyer financing arrangements, in-house financing, short-term placements, and advances to related parties.

Commissions and other income, by contrast, increased 40.2% to P875.39 million from P624.27 million a year earlier, accounting for 27.1% of consolidated revenues, up from 15.8% in the comparable period last year. The company said the segment included commissions from a subsidiary, rental income from investment properties, and other income sources. That made ancillary earnings a proportionally larger piece of the revenue mix even as the core residential sales business contracted.

Recent Completions

Empire East recently completed and turned over The North Residences at Covent Garden in Manila and the East Tower of Mango Tree Residences in San Juan, adding more than 800 residential units to its portfolio. The company also reported the completion of major road infrastructure works at Empire East Highland City, its township development along the Pasig-Cainta corridor.

Balance Sheet

As of Sept. 30, the company's total assets stood at P50.95 billion, up from P49.93 billion at the end of 2025. Cash and cash equivalents, however, declined to P1.28 billion from P2.28 billion over the same period. For a developer still funding construction and township works, the cash level is a gauge of remaining spending capacity.

“Consistently, the Group still sources its major working capital requirements from internally generated funds and partly from borrowings,” Empire East said. “The Group utilized its funds for the construction and development of projects, loan repayments, settlement of various payables, and other operating expenses,” it added.

The company's year-end disclosure will be the next checkpoint for whether the enlarged share of ancillary income holds, and for any contribution to sales from the more than 800 units turned over at Covent Garden and Mango Tree Residences.

At the local bourse on Wednesday, shares in Empire East closed unchanged at P0.10 apiece. — Alexandria Grace C. Magno