Megaworld nets P2.9 billion
MEGAWORLD CORP. booked an 11% increase in earnings in the first quarter, lifted by robust growth in rental income and hotel revenues.
The listed real estate developer on Thursday said its net income hit P2.9 billion in the January to March period, higher than the P2.6 billion recorded in the same period last year.
Consolidated revenues jumped 5% to P12 billion in the first quarter, from P11.5 billion a year ago. Among its units include leisure estate arm Global-Estate Resorts, Inc., affordable property developer Suntrust Properties, Inc., and Empire East Land Holdings, Inc., which caters to the mid-income segment.
“Our long- term goal is to strengthen our recurring income base while we maintain our leadership in residential developments. We already have a solid landbanking in place. All we have to do is to maximize the use of these lands to further expand our presence especially in key growth areas in the provinces,” Megaworld Chief Financial Officer Francis C. Canuto said in a statement.
Megaworld said residential sales “remained steady,” contributing around 70% of its total revenues. The exact figure was not disclosed.
Rental income, on the other hand, increased 26% to P2.9 billion in the January to March period. Recurring income from the office and commercial rentals contributed 24% to the overall quarterly revenues.
Hotel revenues also delivered a 23% increase to P335 million, following the expansion of hotel brands Richmonde in Iloilo City and Belmont in Pasay City.
This year, Megaworld will be launching 20 residential projects with a total sales value of P31.2 billion. The developments will be spread out across Taguig, Iloilo, Pampanga, Cavite, Antipolo, Boracay and Tagaytay.
“We are also very keen about prospects for tourism. This is a big opportunity for us. We hope to support the government’s tourism programs by building more tourism-related developments such as hotels,” Mr. Canuto said.
Earlier this week, Megaworld’s GERI announced the expansion of its residential cluster in Boracay Newcoast through the construction of a P1.8-billion project called Ocean Garden Villas. The project, which will feature a three-tower residential condominium cluster, is due for completion by 2021.
In March, the company opened its first Savoy Hotel in the same area, which brings its hotel portfolio to a total of 1,500 rooms.
In terms of urban townships, Megaworld currently has a total of 22 developments nationwide.
Shares in Megaworld dipped 0.71% or three centavos to close at P4.18 apiece on Thursday.