Megaworld’s net income jumps 13 per cent
Integrated urban township developer Megaworld last year grew its net income by 13.4 per cent to PHP13.3 billion (US$255.7 million), including non-recurring gains of PHP113 million.
The net income attributable to the parent company was PHP12.8 billion at the end of December, a 12.7 per cent jump. The company says the healthy growth was underpinned by strong performances of key businesses in residential and hotel developments, office as well as commercial space leasing in malls and shopping centres.
Consolidated revenues, including non-recurring gains, grew 7.7 per cent to PHP50.4 billion.
Megaworld’s rental business, which covers both office and commercial space leasing, had the fastest growth among the segments. Rental income soared 18.2 per cent to PHP11.8 billion.
“We are still way beyond our targets and will see this momentum continue until we reach our PHP20 billion target in annual rental income by 2020, or even beyond that,” says Megaworld senior VP/treasurer Francis Canuto.
Megaworld is allocating PHP billion in capital spending this year, with 80 per cent covering development projects. The rest will be set aside for land acquisition and other investment properties.
“The Megaworld Group is now present in more than 30 cities,” says Canuto. “We will continue to be aggressive in developing more townships and integrated lifestyle communities across the country, most especially in the provinces.”
Megaworld is developing a Makati-inspired business district in General Trias Cavite, the 35ha Maple Grove Commercial District. In little more than a month, it has sold around 80 per cent of the 360 prime commercial lots worth PHP9 billion, the fastest take-up of titled commercial lots in the company’s history.
During the past 28 years, Megaworld has built more than 660 residential developments, 54 office towers and 15 lifestyle malls in 23 masterplanned townships and integrated lifestyle communities across the Philippines.