Property giant Megaworld Corporation reported 11 percent increase in net income in the first half of the year on the back of higher rental income from its office, mall and commercial developments.
In a financial report to the Philippine Stock Exchange on Wednesday, Megaworld said its net income for the first six months of 2016 rose to P6.03 billion from P5.43 billion last year.
Consolidated revenues of the firm, which includes subsidiary brands Global-Estate Resorts, Inc. (GERI), Empire East Land Holdings, Inc. and Suntrust Properties, Inc., amounted to P23.03-billion for the first half of 2016, a five percent rise from P22.01-billion during the same period in 2015.
Megaworld noted that the sale of condominium units and residential lots accounted for 58.34 percent of the consolidated revenues. Real estate sales posted a minimal increase of 0.05 percent in the first six months of the year to P13.43 billion.
“The Group’s sales came mostly from the following projects: One Eastwood Avenue Towers 1 & 2, Two Central, St. Moritz Private Estate, Savoy Hotel – Newport City, The Palladium, Three Central, One Manchester Place, The Venice Luxury Residences, Uptown Parksuites Tower 1 & 2, Greenbelt Hamilton Towers 1 & 2, Uptown Ritz Residences, and Viceroy East Tower,” Megaworld said.
The company’s rental income jumped 15 percent in the first six months of the year to 4.84 billion from the P4.21 billion posted last year, which accounts for 21.03 percent of the group’s consolidated revenues.
“Aggressive expansion of the Group’s leasing portfolio, escalation of rental rates and high demand for office space from BPO Companies contributed to the consistent growth of rental revenues,” the company said.
Revenues from the firm’s hotel operations jumped 64.70 percent to P590.32 million from P358.42 million last year.
Meanwhile, Megaworld treasurer Francis Canuto also attributed that company’s financial growth to its aggressive focus on township developments not only in Metro Manila but also in the provinces.