Property giant Megaworld Corp. reported on Thursday its net income in the first three months of the year jumped by 12.13 percent to P2.63 billion from P2.35 billion a year earlier on the back strong rental revenue.
Its rental business grew at all-time at P2.29 billion, up 15.18 percent from P1.97 billion in the same comparable period.
Earlier this year, Megaworld noted an P11-billion target in rental revenue.
Chief Finance Officer Francis Canuto attributed the growth to the expansion of the mall and office businesses.
“We have sustained our expansion plans for our office and mall businesses, which bolstered our rental revenues. In the next five years, we see our rental businesses become the key driver of our growth as we expect a continuing momentum in consumer spending and a remarkable growth in BPO revenues,” Canuto said.
Consolidated revenue of the group, which includes subsidiaries Global-Estate Resorts Inc. (GERI), Empire East Land Holdings Inc., and Suntrust Properties Inc. increased by 9.49 percent at P11.46 billion from P10.47 billion.
Residential arm Megaworld noted sales rose by 10 percent to P6.86 billion from P6.24 billion.
“We continue to innovate our residential offerings that adapt to the diverse characteristics of each township that we build. That is why we are able to sustain the growth in our residential business,” Canuto said.
“Megaworld has laid out its groundwork of growth by making sound decisions and thorough planning of the vast land bank that we have. This year, we will continue to strengthen, if not expand, our township footprint, where we can build more residential, office, and mall developments. Our healthy first quarter results are indicative of another positive outlook for 2016,”Canuto said.
The company has earmarked P55 billion for capital expenditure this year, which also covers its subsidiary brands.
Seventy-five percent of the budget will used to develop projects while 25 percent will be allotted to land acquisition and investment properties.