LISTED property developer Megaworld Corp. reported net income of P2.9 billion for the first quarter of the year, up 11 percent from the same period last year, on the back of strong rental income and consistent residential revenues.
Consolidated revenues, including its subsidiary brands Global-Estate Resorts, Inc. (GERI), Empire East Land Holdings, Inc. and Suntrust Properties, Inc., amounted to P12 billion, up 5 percent from the previous year.
In a disclosure to the Philippine Stock Exchange (PSE) on Thursday, Megaworld said residential revenues from its inventory of condominiums and villages across the country remained steady and continued to contribute around 70 percent of total revenues.
Rental income expanded to a record P2.9 billion, up 26 percent from last year’s P2.3 billion. Recurring income, which comes from office and commercial/mall rentals, contributed around 24 percent of the total quarterly revenues.
Hotel revenues rose 23 percent during the first quarter to P335 million as the company expanded its homegrown hotel brands Richmonde and Belmont, located in Iloilo City and Pasay City, respectively.
Last February, Megaworld announced it is set to launch 20 residential projects nationwide this year with a total sales value of about P31.2 billion.
These projects will rise in Uptown Bonifacio, McKinley West and McKinley Hill, all in Fort Bonifacio; Iloilo Business Park in Mandurriao, Iloilo City; The Capital Town in San Fernando, Pampanga; Maple Grove in General Trias, Cavite; Eastland Heights in Antipolo, Rizal; Boracay Newcoast in Boracay Island; Sta. Barbara Heights in Iloilo; and Twin Lakes near Tagaytay.
Megaworld has said it is allocating P60-billion in capital expenditures for this year, 80 percent of which will be used for the construction of new residential condominiums, office towers, commercial centers and hotels and 20 percent for land acquisition and investment properties.
“We are also very keen about prospects for tourism. This is a big opportunity for us. We hope to support the government’s tourism programs by building more tourism-related developments such as hotels,” Megaworld Treasurer Francis Canuto said.
Just last month, the company opened its first Savoy Hotel in Boracay Newcoast. It currently has an inventory of 1,500 rooms across its hotel brands such as Richmonde, Eastwood Richmonde Hotel, Richmonde Hotel Iloilo, Belmont, and Savoy.
Late last year, the company launched the 640-hectare Eastland Heights in Antipolo, Rizal, its first integrated lifestyle community.
Megaworld is the property vehicle of businessman Andrew Tan under his umbrella conglomerate Alliance Global Group Inc.