Megaworld profits rise to 115.8 B

Megaworld profits rise to billion

Megaworld Corp., the country’s largest developer of integrated urban townships, reported a 17 percent hike in recurring net income to 115.8 billion last year from 113.6 billion in 2017.

In a statement, the firm said this excludes a 1113 million non-recurring gain registered in 2017.

Consolidated revenues grew by 15 percent to 157.4 billion in 2018 from the previous year’s 150 billion (excluding the 1113-million non-recurring gain).

Megaworld’s rental businesses, comprising of office and commercial leasing, strongly contributed to the topline, rising 21 percent to 114.3 billion in 2018 from the previous year’s 111.8 billion.

This contributed 25 percent of the total consolidated revenues during the year. In 2018 alone, Megaworld has already achieved over 70 percent of its rental income target of 120 billion by end of 2020.

Last year, Megaworld opened a mall in Iloilo and two community malls in Makati and Las Piñas cities. It also bagged the long-term lease contract to build the 25storey Philippine Global Service Center of JPMorgan Chase Bank, N.A.

“We have already secured multiple pre-lease deals for our office buildings as well that are in the pipeline until next year. Same goes to our mall and commercial spaces that are set to open in our various townships,” said Megaworld Chief Strategy Officer Kevin L. Tan.

He added that, “for our residential properties, we continue to see strong take-up especially in our mature townships, and there is already a consistently growing interest in our newly-launched townships.”

Megaworld’s residential business saw a double-digit growth of 11.5 percent in 2018 to 138 billion from 134.1 billion during the same period the previous year. This contributed 66 percent of the total consolidated revenues during the year.

The Megaworld Group launched 25 residential projects in 2018, with a total sales value of around 1106 billion. The company also achieved 1135 billion worth of sales reservation during the year.

Megaworld’s hotel business grew its revenues by 14 percent to 11.5 billion compared to 11.3 billion in 2017. The company launched two new hotels last year: the Savoy Hotel Manila and the Twin Lakes Hotel Laurel, Batangas.

“We have gained the fruits of our expansion in the regions as we saw continuing growth in the demand for residential units as well as office and commercial spaces in our various townships across the country,” said Tan.