The Andrew Tan-led Megaworld Corp. posted an increase of 15 percent in its nine-month net income, which was supported by the strong sales from its residential developments in its township projects as well as strong leasing income from its business process outsourcing and retail portfolio.
In a filing with the Philippine Stock Exchange, Megaworld disclosed on Wednesday that its net income rose 15 percent year-on-year to P6.6 billion from P5.7 billion in the first nine months of 2013.
Also, total revenues of the listed property firm grew to P26.68 billion during the same period, up 12 percent from P23.85 billion, while its reservation sales amounted to P56 billion, an increase of 20 percent from the P46.5 billion it registered in the same period last year.
Seen as the potential area for growth, the rental income of the company coming from business process outsourcing office (BPO) developments and lifestyle malls for the period surged to P4.34 billion, up 20 percent from the P3.61 billion posted last year.
“We will fast-track our BPO office developments and lifestyle malls to support the growing demands of the BPO industry and the retail consumers. This will enable us to make 2014 a record year in terms of rental income,” Andrew Tan, Megaworld chairman and chief executive officer, said. By the end of 2013, Megaworld expects to have more than a half million square meters of net leasable area for office space in its portfolio, with the completion of some of its projects.
For the first nine months of 2013, the Megaworld group launched a total of 18 projects, while its subsidiaries, Empire East and Suntrust launching five and three projects, respectively.