PROPERTY giant Megaworld Corp.’s net income increased 12 percent in the first nine months of 2017, boosted by higher revenue from investment properties.
In a disclosure to the Philippine Stock Exchange on Wednesday, Megaworld said net income rose to P10.34 billion in the nine months from P9.27 billion registered in the same period last year.
“There is a brighter side for our residential business as we have started the bulk of our unit turnovers in Makati and Fort Bonifacio this year. Our rental business remains to be a key contributor to our consistent growth, and we see this to become stronger in the coming years as we complete more office and commercial buildings as well as malls in our townships across the country,” Megaworld Senior Vice President and treasurer Francis Canuto said.
“There is also a remarkable growth in our hotel business as we open more hotels in Metro Manila, Boracay, Iloilo, Cebu and Tagaytay,” he added.
Net income attributable to parent company was P9.98 billion, an increase of 11 percent from the P8.98 billion recorded a year ago.
Revenues from investment properties soared 19 percent in the period, pulling up the company’s nine-month earnings.
Residential revenues were steady while hotel revenues were up 8 percent from the comparable period last year.
Rental income helped sustain earnings growth amid the strong office and commercial leasing businesses. The first three quarters saw its rental income surge to P8.82 billion from P7.41 billion in the same period last year.
Consolidated revenues stood at P37.10 billion, 5 percent higher than the prior year’s P35.26 billion.
Megaworld is the property arm of tycoon Andrew Tan under his umbrella conglomerate Alliance Global Group, Inc. (AGI).