Strong residential sales and higher leasing income fueled Megaworld Corp.’s 2013 profit to hit a record P9.0 billion, surpassing the P7.4 billion profit it achieved in 2012.
In a filing with the Philippine Stock Exchange, Megaworld Corp. said net income in 2013 was 22 percent higher than that of the previous year due to strong residential sales from its various townships and higher leasing income from its office and retail portfolio.
“The country’s strong and stable economy as well as the continuous growth of the BPO [business process outsourcing]sector propelled our growth in 2013. Last year was another banner year for Megaworld,” Megaworld chairman and chief executive officer Andrew Tan said.
“Year after year, we will be completing more office towers, malls, and commercial spaces.
By 2017, we expect our rental income to reach P10 billion, double that of 2012,” he added.
Total revenues of Megaworld, together with its subsidiaries Empire East Land Holdings and Suntrust Properties, amounted to P36.24 billion in 2013, up 18 percent from P30.6 billion in 2012.
Overall, the Megaworld Group posted a record P68.2 billion in reservation sales in 2013 from 18 projects launched during the year. Ten of these projects belong to Megaworld, five belong to Empire East’s, and the remaining three are projects of Suntrust Properties.
In total, Megaworld’s rental income from office developments and lifestyle malls surged to a record P6.04 billion in 2013, 21 percent higher than the P4.99 billion recorded in 2012.
It was reported earlier that Megaworld intends to further solidify its position as the leader in office developments in terms of total office space inventory by completing another 112,000 square meters of office spaces this year.
By the end of 2014, the company will have around 712,000 square meters of office spaces in its portfolio with the completion of office towers across its different townships. “Along with our sustained growth in the residential segment, we are committed to further expand our recurring income portfolio especially in our office and retail businesses,” Tan said.
To date, the company has 10 townships throughout the country covering around 300 hectares of land.