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By Likha C. Cuevas-Miel, Reporter
MEGAWORLD Corp. announced on Tuesday that its
first-quarter profit grew by double digits on the back of higher
real estate sales from new projects this year.
In a statement, the property developer said its
net income in the first three months grew by 29 percent to P1.01
billion year on year, as revenues jumped by 63 percent to P4.67
billion. According to Megaworld, real estate sales were the key
growth drivers, surging by 79 percent to P3.31 billion as the
company focused on the mid-income residential and business process
outsourcing (BPO) office developments.
“Our market-oriented strategy and
single-minded approach to excel in all our business segments have
provided the company with a strong platform to sustain our growth.
We have reached another milestone as this is the first time in our
history that we have breached P1 billion in net profit for a single
quarter,” Andrew Tan, Megaworld chairman and chief executive,
said.
Despite the current global uncertainty and
higher inflation, Tan said company will hit P3.8 billion in profits
this year.
In February, the company pre-launched three new
residential condominium projects with an aggregate sales value of
over P9 billion. These projects are One Central within the Makati
central business district, Parkside Villas at Newport City in Pasay
City, and Morgan Executive Suites at McKinley Hill in Taguig City.
The company’s rental income rose by 59 percent
to P333.53 million year on year due to a combination of high
occupancy rates in both its BPO office spaces and retail
developments, as well as “aggressive buildup” of its portfolio
of investment properties. By year-end, Megaworld will complete about
104,000 square meters of BPO space and about 40,000 square meters of
retail space with pre-leasing reaching 60 percent and 80 percent,
respectively.
Among the new BPO office buildings slated for
completion this year include E-Commerce Plaza in Eastwood City, Two
and Three World Square at McKinley Hill, One Campus Place at
McKinley Hill, and Newport Corporate Plaza at Newport City. On the
retail side, Megaworld will open Eastwood City Mall by year-end.
Megaworld fully consolidated Empire East Land
Holdings Inc.’s accounts starting this year as a subsidiary since
the parent increased its stake from 45.2 percent to 59.8 percent.
For the first three months, Empire East’s net income inched up by
5 percent to P58.5 million year on year. Megaworld expects stronger
earnings growth for the subsidiary this year on account of its new
projects.
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