MANILA, Philippines - The Andrew Tan-led Megaworld Corp. posted a net income of P5.43 billion in the first half of the year, up 12.5 percent from the same period a year ago.
Officials said the company’s strong rental business, which includes offices, malls and commercial centers, boosted first half earnings.
Rental income reached P4.21 billion in the first semester or an increase of 22.25 percent year-on-year.
Given strong demand for its products, the company has revised upward its 2015 rental income target to P9 billion from P8 billion.
Megaworld chief finance officer Francis Canuto expects to sustain its growth in the second half with the launch of five new townships this year.
“The backdrop of the Philippines’ vibrant economy continues to benefit the local property market as evident in our first half results. We look forward to another bright year for Megaworld as we focus our efforts on aggressively expanding our townships across the country, and providing new and innovative offerings in residential, office and commercial businesses. This year, five new townships will be launched which will give us around 400 hectares of land for development,” he said.
Canuto said the company also intends to strengthen its recurring income.
“This year, we are opening new malls and office towers that will allow us more opportunities for leasing growth. Megaworld is on track in achieving its P10-billion target in rental income next year,” Canuto said.
Residential business continued its momentum as real estate sales grew 12 percent to P13.4 billion.
At present, the company has a 4,000 hectare land bank.
Meanwhile, consolidated core revenues of the Megaworld Group, which includes Global Estate Resorts, Inc. (GERI), Empire East Land Holdings, Inc. and Suntrust Properties, Inc., amounted to P20.9-billion in the first half, up 13.5 percent from P18.43 billion.
Over the past 25 years, the Megaworld Group has developed over 342 completed residential and office buildings covering a total area of around 6.4 million square meters.
To date, Megaworld has 18 townships all over the country such as the 18.5-hectare Eastwood City in Quezon City, the 25-hectare Newport City in Pasay City, the 50-hectare McKinley Hill and 34.5-hectare McKinley West, the 15.4-hectare Uptown Bonifacio and five-hectare Forbes Town Center all in Fort Bonifacio.
Other projects include the 28.8-hectare Mactan Newtown in Lapu Lapu City, Cebu, the 72-hectare Iloilo Business Park and 173-hectare Sta. Barbara Heights both in Iloilo, the 150-hectare Boracay Newcoast in Boracay Island and the 1,300 hectare Twin Lakes in Tagaytay of Global Estate Resorts, Inc. (GERI), a subsidiary of Megaworld as well as 12.3-hectare Woodside City in Pasig City as well the 561-hectare Southwoods City in the boundaries of Cavite and Laguna and the 11 hectare Davao Park District in Lanang, Davao City.
The rest of the projects are Alabang West in Las Piñas City (62 hectares); Suntrust Ecotown in Tanza, Cavite (350 hectares); and The Upper East (34 hectares) and Northill Gateway (50 hectares), both in Negros Occidental.