Property giant Megaworld Corp. announced on Wednesday that its net income for the first half of the year increased 12.51 percent to P5.43 billion, driven by the strong performances of its rental business unit and real estate sales.
The company reported net income of P4.82 billion in the comparable period last year.
“The company’s aggressive expansion of its pioneering concept of integrated urban townships and mixed-use communities across the country remains to be the key driver of growth for Megaworld,” it said in a statement.
Francis Canuto, Megaworld chief finance officer, said that the country’s vibrant economy is benefiting the property sector which reflects on Megaworld’s first half results.
Megaworld’s rental business unit, which includes offices, malls and commercial centers, posted posted a 22.25 percent growth in rental income to P4.21 billion from P3.44 billion a year ago.
“We remain steadfast in strengthening our recurring income businesses. This year, we are opening new malls and office towers that will allow us more opportunities for leasing growth. Megaworld is on track in achieving its P10 billion target in rental income next year,” added Canuto.
Last month, Megaworld announced that it is spending around P20 billion for 12 state-of-the-art office towers in the next three years. These office towers are expected to provide another 350,000 square meters of office spaces in Fort Bonifacio, adding to the existing 300,000 square meters of office space inventory that Megaworld holds in this booming district.
Similarly, real estate sales also increased to P13.43 billion, a 12 percent increase from the P12.01 recorded in the same period last year.
Megaworld also said it already has a landbank of 4,000 hectares for its all of its developments.
Meanwhile, consolidated core revenues of the Megaworld Group, which includes Global Estate Resorts, Inc. (GERI), Empire East Land Holdings, Inc. and Suntrust Properties, Inc., amounted to P20.93 billion for the first half, up 13.56 percent from the P18.43 billion posted in the same period in 2014.
“We look forward to another bright year for Megaworld as we focus our efforts on aggressively expanding our townships across the country, and providing new and innovative offerings in residential, office and commercial businesses,” he said.
He added that Megaworld will launch five more townships this year.
“This year, five new townships will be launched which will give us around 400 hectares of land for development,” he said.
Megaworld is pioneer in integrated urban township developments and currently has 18 townships all over the country.
For more than 25 years, the Megaworld Group has developed over 342 completed residential and office buildings covering a total area of around 6.4 million square meters.