LATEST DISCLOSURE

September 30, 2024

Management's Discussion and Analysis of Financial Condition or Results of Operation

The financial results for the first nine (9) months of 2024 of Philippine Realty and Holdings Corporation (interchangeably referred to by its PSE trading symbol "RLT" or "Parent Company" or as the "RLT Group" or "Group”) reflected a consolidated net loss after tax of ₱176 Million. But in spite of this, the Group still maintained acceptable and very conservative liquidity and solvency ratios.

GDP Growth

The country’s gross domestic product (GDP) growth rate for the third quarter of 2024 was 5.2% — down from the 6.3% growth rate recorded in the second quarter. This brings average GDP growth for the first three quarters of 2024 to 5.8%, slightly below the target of 6.0% to 7.0% for the year.

Despite the decline in our GDP growth rate, our economy continues to grow steadily; the latest GDP figures indicate continuous expansion. Of the countries that have reported their third-quarter GDP growth rates, we remain one of the fastest-growing Asian economies. We follow Vietnam, which posted a 7.4% growth rate, and are ahead of Indonesia (4.9%), China (4.6%), and Singapore (4.1%).

Government Borrowings

As of September 2024, the outstanding debt of the National Government (NG) reached ₱15.89 trillion, 11.4% higher compared to ₱14.27 trillion in the same month last year. ₱15.89 trillion represents an increase of 2.2% from the August 2024 debt level due to the net availment of new external and domestic debt. Of the total NG debt stock, 68.81%, was sourced domestically, while 31.19% came from external borrowings.

Debt-to-GDP Ratio

The NG’s debt-to-GDP ratio was recorded at 61.3% as of end-September 2024 following the release of the Q3 2024 Gross Domestic Product (GDP) which grew by 5.2% year-on-year. The debt ratio was higher when compared with 60.2% a year ago and with 60.1% at the end of 2023.

Meanwhile, the fiscal deficit settled at 5.1% for January-September 2024 compared with 5.7% for the same period in 2023. The debt ratio reflects the accomplishment of 89.5% of the full-year borrowing program to fund 2024 expenditures. The NG targets an end-December debt-to-GDP ratio of 60.6% and full-year deficit-to-GDP of 5.6%, as outlined in the revised Medium-Term Fiscal Framework (MTFF).

Inflation

The Philippine Statistics Authority (PSA) reported that the inflation rate for September 2024 eased to 1.9% from 3.3% in August, marking the lowest level since May 2020’s 1.6%. This recent figure brings the year-to-date inflation to 3.4%, within the government’s target range of 2% to 4%, and broadly consistent with inflation trends in other ASEAN economies.

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