Megaworld recurring profit up 12% in 2016

MEGAWORLD CORP. on Wednesday reported its recurring net income increased by 12% in 2016, driven by robust rental revenues from office spaces and cost management efforts.

In a statement, the listed urban township developer said its core profit last year rose 12% to P11.63 billion, excluding a one- time gain of P82 million, from 2015’s P10.39 billion, excluding a P181 million non- recurring gain. In 2015, core profit grew by 11%.

Consolidated revenues, net of P82 million in non-recurring gains, grew by 4% to P46.74 billion in 2016. This was slightly slower than the 9.37% growth recorded in 2015, when recurring consolidated revenues reached P44.81 billion from P40.97 billion recorded in 2014.

Rental revenues jumped 15% to an all- time high of P10.01 billion in 2016, from P8.73 billion a year prior.

“Megaworld reached another milestone last year as we breached the P10-billion mark for our rental revenues. We have achieved our targets across the board as we have steadily grown and expanded our businesses,” Megaworld Treasurer Francis C. Canuto was quoted as saying in a statement.

Megaworld said its cost management programs led costs and expenses growing by only 2% to P35.1 billion in 2016, from P34.4 billion in 2015.

“Prudent spending for operation expenses led to only 5% growth, a remarkable improvement from 7% yearon-year growth in 2015,” the company said.

The company did not give other details.

Mr. Canuto said Megaworld is continuing to focus on township development, described as a “key strength,” aside from its residential businesses.

“Last year, we became successful in introducing another concept in real estate development which we call the ‘ integrated lifestyle community.’ This year, we hope to add more developments under this category as we activate some of our remaining raw lands across the country that have good potential for leisure and tourism,” he said.

In 2016, Megaworld added 780 hectares to its portfolio through the first integrated lifestyle community Eastland Heights in Antipolo, Rizal and the Maple Grove township in General Trias, Cavite.

Shares in Megaworld added 15 centavos or 4.23% to close at P3.70 apiece on Wednesday. —