ANDREW TAN-LED property giant Megaworld Corp. said net income in the first quarter grew 12.48 percent driven by strong sales across its residential, office leasing and retail sales segments.
In a statement, the company said net income in the first three months increased to P2.35 billion from P2.09 billion in the same period last year.
Consolidated revenues, including revenue from its three main subsidiaries — Global-Estate Resorts Inc. (GERI), Empire East Land Holdings Inc. and Suntrust Properties Inc. (SPI) — rose 12.08 percent to P10.47 billion from the P9.34 billion recorded in the first three months of 2014.
“We are on track in achieving consistent quarterly double-digit growth and we remain optimistic to hit and even surpass our growth target for the year,” Megaworld chief finance officer Francis Canuto said.
Megaworld said rental income from its office and malls leasing segment improved by 16 percent to P1.99 billion from P1.71 billion.
The company earlier said it expects rental income to reach P10 billion by 2016 due to the expansion of its office and mall portfolio in its existing and upcoming townships.
To date, Megaworld has launched 17 integrated urban township developments across the country and is set to launch three more townships in the remainder of the year in a bid to raise its township inventory to 20 from 15 last year.
Jericho P. Go, Megaworld senior vice president, earlier said the company was looking to raise up to P15 billion in fresh funds from the debt market to finance its expansion plans, including raising their township count to 20 by yearend.
From 2015 to 2019, Megaworld has programmed a P285.8-billion expansion plan to increase its portfolio across its residential, office, retail and hotels business segments, of which the initial P65 billion will be used as capital expenditure (capex) this year for the launch of five new townships, development of projects and land banking.
The company’s notable townships include the 18.5-hectare Eastwood City in Quezon City; 50-hectare McKinley Hill, 34.5-hectare McKinley West and 15.4-hectare Uptown Bonifacio.
The Tan-led developer holds a 100-percent stake in SPI, 74.96 percent in GERI, 82 percent in Empire East and interest in 30 other subsidiaries.
Megaworld is a property vehicle of Tan’s holding firm Alliance Global Group Inc., which also owns and operates Emperador Inc., McDonalds local franchisee Golden Arches Development Corp. and Resorts World Manila operator Travellers International Hotel Group Inc.