Sometimes the most interesting number in a company’s financial statements is not found in the income statement or even on the balance sheet. It is buried in the notes.
For Boulevard Holdings Inc. (BHI), that number is P4.77 billion.
That is the estimated fair value of the company’s investment properties as disclosed in its latest audited financial statements. Yet those properties are carried on BHI’s balance sheet at only P666.25 million.
The difference raises an interesting question for investors. If BHI owns property potentially worth billions of pesos, why does the stock market appear to assign so little value to it?
The answer illustrates why finding hidden assets is only the first step in valuing an asset-rich company.
The P4.7-billion property
Most of the hidden value comes from parcels of land in Barangay Sapang, Ternate, Cavite.
BHI owns 784,080 square meters, or about 78 hectares, which it holds for capital appreciation. According to the financial statements, an independent licensed real estate appraiser valued the land at P4.70 billion as of July 17, 2026.
Management identified its highest and best use as mixed residential and recreational development. BHI also owns condominium units with an estimated fair value of about P69.29 million. Together, its investment properties have an aggregate disclosed fair value of approximately P4.77 billion.
Why, then, does the balance sheet show only P666.25 million?
BHI accounts for investment property using the cost model. As a result, increases in the estimated market value of the land do not automatically appear as increases in the carrying value of the asset.
This creates a large gap between accounting value and estimated market value.
What happens if we adjust BHI’s NAV?
At May 31, 2026, BHI reported total assets of about P2.20 billion against liabilities of P261 million. This leaves consolidated equity of approximately P1.94 billion.
But suppose the P666.25-million carrying amount of investment property is replaced with its disclosed P4.77-billion fair value.
That would create a gross valuation uplift of approximately:
P4.77 billion − P666.25 million = P4.10 billion
Add that difference to reported consolidated equity and an indicative adjusted net asset value reaches roughly:
P1.94 billion + P4.10 billion = P6.04 billion
With 14.4 billion issued and subscribed shares, that translates to an indicative adjusted NAV of approximately:
P6.04 billion ÷ 14.4 billion shares = P0.42 per share
That number can look compelling when compared with a market price of only a few centavos.
But investors should resist the temptation to conclude that BHI is therefore “worth” P0.42 per share.
NAV is not the same as stock value
An appraisal estimates what a property could be worth under certain market assumptions. It does not put P4.70 billion of cash into BHI’s bank account.
In fact, BHI had only P2.5 million in cash as of May 31, although it also held P299.4 million in financial assets at fair value through profit or loss.
More importantly, the Ternate property is currently held for capital appreciation. Its value will ultimately depend on what BHI can do with it.
The company could sell the property, develop it, enter into a joint venture or continue holding it as land values appreciate. Each choice could produce a very different value for investors.
A sale could involve taxes and transaction costs. Development would require additional capital and time. A joint venture would mean sharing future economics with another party. Holding the land could preserve its potential value but may generate little immediate cash flow.
This is why investors often apply a discount to the NAV of asset-rich companies.
The operating business still has to perform
BHI’s latest results help explain why investors may not give full credit to its appraised assets.
Revenue increased to P36.93 million in fiscal 2026 from P27.14 million the previous year, but costs and expenses reached P87.43 million. The company consequently reported a net loss of P35.40 million, although that was considerably narrower than its P117.02-million loss in 2025.
BHI has also reported negative operating cash flow for three consecutive years. Net cash used in operating activities amounted to P25.61 million in 2026, following P68.05 million in 2025 and P43.33 million in 2024.
Its hospitality operations remain challenged as well. Friday’s Puerto Galera generated P36.93 million in revenue during 2026 but still recorded a P15.53-million net loss. Several hospitality subsidiaries also reported capital deficiencies.
In other words, BHI has substantial assets, but those assets have yet to translate into consistently profitable operations and positive cash generation.
How much of the appraisal should investors count?
This is where NAV analysis becomes more useful.
Instead of assuming that investors should value the property immediately at 100 percent of appraised value, consider what happens if only part of the P4.10-billion valuation uplift is recognized.
Using the reported consolidated equity as the starting point, the indicative figures would look approximately like this:
Recognition of property uplift Indicative NAV NAV/share
| 0% | P1.94B | P0.135 |
| 25% | P2.97B | P0.206 |
| 50% | P3.99B | P0.277 |
| 75% | P5.02B | P0.348 |
| 100% | P6.04B | P0.420 |
This exercise does not establish a target price. Rather, it shows how sensitive BHI’s asset value is to one major assumption: how much of the appraised property value can ultimately be realized for investors.
Even at 50 percent recognition of the property uplift, the indicative NAV would be about P0.28 per share.
The large gap therefore deserves attention. But the existence of a gap alone does not guarantee that it will close.
The market may be discounting time
One clue can be found elsewhere in BHI’s financial statements.
The company demolished Friday’s Boracay in 2023 as part of a planned redevelopment. Yet as of May 31, 2026, construction had not commenced. The project remained in the design and permitting stage, with approximately P48.46 million already recorded as construction in progress.
This illustrates one of the problems with asset-based valuation. Real estate can have considerable appraised value while taking years to produce cash. For investors, time has a cost.
P1 billion that can be distributed today is worth more than P1 billion that might be realized many years from now. The greater the uncertainty over when and how an asset will be monetized, the larger the discount investors may demand.
Hidden assets need a catalyst
BHI therefore presents an interesting lesson about stocks that appear cheap based on their assets.
The company’s financial statements disclose investment properties with an estimated fair value far above their accounting carrying value. An adjustment for that difference produces an indicative NAV that is substantially higher than book value, but NAV alone cannot answer whether a stock is cheap.
Investors also have to ask whether management can convert those assets into cash, earnings or sustainable returns on capital. They need to consider how long that process could take, what additional capital may be required and how much of the appraised value could ultimately reach them.
The market may sometimes overlook hidden assets. But it can also deliberately discount assets that have remained unproductive for long periods.
For BHI, the P4.77-billion property appraisal tells investors that there may be considerably more economic value on the balance sheet than historical cost suggests.
