The value of land in Batangas has significantly appreciated
In the shifting geography of Philippine commerce, AbaCore Capital Holdings found its footing in Batangas province, swinging from an 84.7 million peso loss in 2020 to a 4.6 billion peso profit in 2021. The gain speaks less to a single decision than to a broader human pattern: when a place becomes desirable, those who already hold its land hold something newly precious. Through deliberate joint ventures and the quiet arithmetic of rising property values, AbaCore positioned itself at the intersection of investor ambition and provincial transformation.
- A company that bled 84.7 million pesos in 2020 emerged a year later with 4.6 billion pesos in profit — a reversal that demands explanation.
- The bulk of the gain was not earned through sales or services but through fair value adjustments, meaning the land itself became the engine of wealth as Batangas attracted a surge of industrial and commercial interest.
- Two landmark deals crystallized the momentum: a $100 million condotel joint venture with a New Zealand firm and a 103-hectare energy hub agreement tied to a liquefied natural gas facility.
- With 330 hectares of Batangas land in its portfolio, AbaCore holds both the inventory and the leverage to keep attracting partners as the province's economic profile rises.
- Despite the headline profit, the market responded with a 2.1 percent share price drop on announcement day, hinting that investors may have already absorbed the optimism — or harbor quiet doubts about what comes next.
AbaCore Capital Holdings recorded a net income of 4.6 billion pesos in 2021, reversing an 84.7 million peso loss from the year prior. The turnaround was anchored in Batangas province, where rising investor interest has steadily pushed land values upward. Of the total profit, roughly 580 million pesos came from operations; the rest flowed from fair value gains on the company's real estate holdings — land that became worth considerably more as businesses rushed into the region.
Chairman Raul De Mesa credited the results to Batangas' emergence as a destination for industrial and commercial growth. As more companies sought space and favorable conditions, demand for land intensified, and AbaCore's holdings appreciated accordingly. The company moved deliberately to convert that appreciation into structured opportunity, signing a $100 million joint venture with New Zealand-based Starfleet Innotech to develop a resort-style condotel, and separately agreeing to provide 103 hectares to an A. Brown & Company subsidiary for the ABA Energy Hub, a liquefied natural gas facility.
Underpinning both deals is AbaCore's land bank of roughly 330 hectares across Batangas — a reserve that gives the company room to negotiate and grow. De Mesa expressed confidence that 2022 would extend the momentum as more investors recognize the province's potential. Yet on the day the results were announced, AbaCore's share price slipped 2.1 percent to 1.39 pesos, a quiet signal that markets, while not dismissive, may already be looking past the headline and toward what the company must prove next.
AbaCore Capital Holdings swung sharply into profitability in 2021, posting a net income of 4.6 billion pesos after losing 84.7 million pesos the year before. The turnaround was driven largely by the company's decision to pursue joint venture partnerships across Batangas province, where a wave of business expansion has lifted property values significantly.
Of the 4.6 billion peso profit, roughly 580 million pesos came from regular operations. The remainder—the bulk of the gain—came from what accountants call fair value adjustments on the company's real estate holdings. In plain terms, the land AbaCore owns became worth more money on paper as investors and businesses rushed into Batangas, and that appreciation flowed directly to the bottom line.
Raul De Mesa, the company's chairman, attributed the strong results to broader economic currents. Batangas has emerged as a magnet for industrial and commercial expansion, he said, drawing businesses seeking room to grow and favorable conditions for investment. As more companies set up operations there, demand for land has intensified, pushing prices upward. "The value of land in Batangas has significantly appreciated in recent years," De Mesa said, "therefore increasing ABA's bottomline and boosting our shareholders' return on their investments."
The company has been deliberate in capitalizing on this trend. In 2021 alone, AbaCore signed a 100-million-dollar joint venture with Starfleet Innotech, a New Zealand-based asset management firm, to develop a resort-style condotel on company land. Separately, AbaCore agreed to provide property to a subsidiary of A. Brown & Company for construction of the ABA Energy Hub, a 103-hectare facility designed to house a liquefied natural gas operation.
These deals are possible because AbaCore controls a substantial land bank—roughly 330 hectares across Batangas—giving the company both the inventory and flexibility to partner with investors seeking development opportunities. De Mesa signaled confidence that the momentum would continue. "Our 2021 financial results demonstrate we have been successful in pursuing partnerships that fully take advantage of Batangas' potential," he said, "and we expect this success to continue in 2022 as more investors and businesses recognize the economic viability of the province."
The company operates across multiple sectors including real estate, tourism, financial services, and energy. On the day the earnings were announced, AbaCore's share price fell 2.1 percent to close at 1.39 pesos, suggesting investors may have already priced in much of the good news or had other concerns about the company's trajectory.
Notable Quotes
The value of land in Batangas has significantly appreciated in recent years, therefore increasing ABA's bottomline and boosting our shareholders' return on their investments.— Raul De Mesa, AbaCore chairman
Our 2021 financial results demonstrate we have been successful in pursuing partnerships that fully take advantage of Batangas' potential, and we expect this success to continue in 2022.— Raul De Mesa, AbaCore chairman
The Hearth Conversation Another angle on the story
So AbaCore went from losing money to making 4.6 billion pesos in a single year. That's a dramatic swing. How much of that was actually earned versus just paper gains?
Only about 580 million came from actual operations—the rest was the land appreciating in value. That's the key distinction. They didn't suddenly become a more efficient business. Batangas became a hotter place to invest.
And that matters because?
Because it means their profit is tied to a specific geographic bet. If Batangas stays hot, they keep winning. If the expansion slows or investors move elsewhere, those paper gains evaporate.
The chairman seems very confident about 2022. Do we know if that confidence was justified?
The statement was made in mid-2022, so he was speaking about what he expected. Whether it actually happened is a different question. But the tone suggests he saw the trend as durable, not a one-year spike.
What's interesting to me is that their stock price actually fell when they announced these huge profits.
That tells you something. Either the market thought the gains were unsustainable, or investors had already expected this news and were looking for something more. A 2.1 percent drop on earnings day is a signal of disappointment, even if the absolute numbers look good.
So the real story isn't the profit. It's whether Batangas stays attractive.
Exactly. The profit is just the symptom. The story is whether the province can sustain being an economic powerhouse, and whether AbaCore's land holdings will keep appreciating or eventually plateau.