Amid strong residential sales, listed real estate developer Megaworld Corp. grew its first-half net income by 15 percent to P4.25 billion from the P3.69 billion it earned in the same period last year.
In a disclosure to the Philippine Stock Exchange, Megaworld explained that the increase in its profit during the first six months of the year was on the back of strong sales from the residential portfolio of its township projects.
Also, Megaworld saw a strong leasing income from its business process outsourcing (BPO) and retail portfolio.
Likewise, total revenues of the company amounted to P17.28 billion in the first half of 2013, up 12 percent year-on-year from P15.43 billion.
Megaworld Group, which includes subsidiaries Empire East Land Holdings and Suntrust Properties, also posted P38 billion in reservation sales in the first half of 2013, up 27 percent compared to the same period in 2012.
“Based on our first-half performance, we are well on track to hit our target of P70 billion in reservation sales for the year 2013. The Megaworld group is looking to launch of at least 25 residential projects for this year,” said Andrew Tan, Megaworld chairman and chief executive officer.
For the first half of 2013, the Megaworld group launched a total of 14 projects.
Empire East, on the other hand, launched five towers for the period, while Suntrust has put on stream two projects.
The group’s rental income from BPO office development and lifestyle malls for the first half of 2013, on the other hand, surged to P2.83 billion, 25 percent higher than the P2.26 billion recorded in the same period last year.
“We will continue to build more office developments and lifestyle malls to support the growing demands of the BPO industry and the retail consumers. This will enable us to achieve another record year for our rental income in 2013,” Tan said.
By the end of 2013, the company expects to have more than 500,000 square meters of office space in its portfolio.