Taiwan Asset Management Co (TAMC, 台灣金聯資產管理), the nation’s largest bad loan operator, has achieved more than 50 percent of its profit target for this year, as its strategy to increase rental income paid off, top officials said yesterday.
As of the end of last month, net income has surpassed NT$500 million (US$15.45 million), more than 50 percent of the annual target of NT$1.06 billion, or earnings of NT$0.8 per share, said Hwang Ding-fang (黃定方), chairman at TAMC, which is funded by the government to help digest the nation’s non-performing loans.
“The growth momentum may extend into the current quarter at a slower pace” when the company is due to sell a batch of residential, commercial properties and land plots with prices lower than market rates, Hwang said.
The sales will start today and last for two weeks with buyers enjoying a grace period of three years, free home appliances valued at NT$90,000 and the chance to win a free trip to Taitung in eastern Taiwan, Hwang said.
It is the sixth consecutive year TAMC launches the sales campaign to cut inventories and boost revenues. The company took the trouble this time to avoid selling properties located in sites susceptible to soil liquefaction based on the data released by the government in mid-March, Hwang said.
Building safety sits atop the list of concerns while TAMC seeks to grow profit, he said.
Rental incomes from 560 properties nationwide amount to NT$400 million a year as the firm has assigned an increasing attention to property management in recent years in response to dwindling bad loans.
“We try to keep to ourselves properties that can generate regular rentals such as a resort hotel in Taitung, a factory park in Taoyuan and several other commercial buildings nationwide,” Hwang said.
The company has inked deals to turn a 10-story building in Taichung into a hotel and another one in Taipei into a heath care facility for senior citizens, Hwang said.
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