Megaworld earns R13.3 B, sets R80-B capital expenditure

Megaworld Corporation, the country’s largest developer of integrated urban townships, grew its net income by 13.4 percent to R13.3 billion in 2017 from R11.7 billion in the previous year.

In a disclosure to the Philippine Stock Exchange, the firm said 2017 earnings included non-recurring gains of R113 million while 2016 figures included a non-recurring gain of R82 million.

Attributable net income ended at R12.8 billion in 2017, a 12.7 percent jump from the R11.3 billion posted in 2016.

Megaworld said the healthy growth was underpinned by the strong performances of its key businesses in residential and hotel developments, office as well as commercial space leasing in malls and shopping centers.

Consolidated revenues including non-recurring gains grew 7.7 percent to R50.4 billion in 2017 from the previous year’s R46.8 billion.

Megaworld’s rental business, which covers both office and commercial space leasing grew the fastest among the segments. Rental income rose 18.2 percent to R11.8 billion in 2017 from last year’s R10 billion.

Comprising around 70 percent of its consolidated revenues, the company’s residential business was up 4.5 percent to R34.6 billion in 2017 from R33.1 billion the previous year.

“We are still way beyond our targets and we see this momentum to continue until we reach our R20 billion target in annual rental income by 2020, or even beyond that. There is still so much opportunities to tap in the property market and we are ready for that,” said Megaworld Senior Vice President and Treasurer Francis Canuto.