PSE Circular for Brokers No. 953-99

May 3, 1999 PSE CIRCULAR FOR BROKERS NO. 953-99 Empire East Nets P462 M in 1998 Housing developer Empire East Land Holding Inc. reported P462.3 million in net earnings for 1998. This figure is lower than the net income recorded for the previous year although sales showed strong signs of rallying towards the last quarter of the year, indicative of a potential improvement in the company's market performance for 1999. Sales in its flagship Laguna BelAir township project started to pick up in the last quarter of 1998, boosted by Empire East's partnership with a growing number of financial institutions starting in October 1998. From an initial nine, there are now 18 banking and insurance firms which are funding interested homebuyers in the township. Empire East's rosier income and sales outlook for 1999 is also supported by substantial increases in the company's resource base. Total assets rose by 22 percent to P18.9 billion from P15.5 billion in 1997. Stockholders' equity likewise expanded by 25 percent to P11.2 billion in 1998 from P8.9 billion the previous year. It carried over a healthy balance sheet from 1997, recording an unchanged net debt-to-equity ratio of 0.2:1 at the end of 1998. The company's continued low debt gearing reflects its policy of fiscal prudence, opting to finance its operations from internally generated funds and other non-debt, cash generating measures. In line with its main objectives last year of completing (ongoing projects and focusing on core commitments to customers. Empire East was able to turn over to buyers a number of projects in Metro Manila and the Calabarzon. Early last year, the company started the turnover of its mid-rise. Governor's Place residential enclave in Mandaluyong City. The 31-story Kingswood Makati twin towers project, which the company developed as part of a consortium with Union Properties, Inc. and Aboitiz and Company, Inc., was turned over starting the last quarter of 1998. Empire East Properties, Inc., a newly-formed mass housing subsidiary, turned over the first batch of house and lot units at the multi-phase Governor's Hills residential community in Gen. Trias, Cavite starting in October last year. Land development, including amenities, was also completed in the last quarter of 1998 for the Pasadena Heights residential subdivision project being marketed by Empire East Land in Gen. Trias, Cavite. prLL Other ongoing projects likewise made rapid strides towards completion. In Metro Manila, the company topped off the first phases of San Francisco Gardens in Mandaluyong City and Gilmore Heights in Quezon City during the last half of 1998. For Laguna BelAir, the company completed the construction of leisure amenities, including a convenience store, and graduated the first batch of students at the Laguna BelAir School within the first half of 1998. Commercial locators have also started positioning in the Laguna BelAir Commercial Center situated along the strategic Sta. Rosa Tagaytay National Highway.