DM Wenceslao earnings down 10% to P2.13 billion

MANILA, Philippines — D.M. Wenceslao and Associates Inc. (DMWAI) reported a net income of P2.13 billion last year, down 10 percent from P2.37 billion a year ago.

This as revenues declined 22 percent to P2.73 billion.

DMWAI CEO Delfin Angelo “Buds” Wenceslao said the impact of COVID-19 on business operations has been minimal.

“While 2020 proved to be a uniquely challenging year that caused unparalleled economic disruption globally, the risks that the pandemic posed in our business operations have been minimal,” he said.

Despite the decline in its numbers, DMWAI’s residential business finished strong in 2020, registering a substantial 37 percent increase to P749.3 million.

As of December 2020, DMWAI turned over 91 percent of its inventory and recognized revenues amounting to P1.25 billion for its first residential project, Pixel Residences.

For its rental business, DMWAI said recurring income consisting of rentals from land, building, and other revenues, such as common use service area fees, continued to provide a robust source of revenue, accounting for 72 percent or P1.96 billion of the total revenues for 2020.

DMWAI’s building leasing portfolio maintained a healthy occupancy rate of 93 percent.

Wenceslao said despite the uncertainty brought about by the pandemic, the company’s leasing business proved to be a solid source of recurring income.

“Our residential segment continued to deliver favorable results for the year. Our performance in 2020 is reflective of not only the resiliency and scalability of our diversified business streams, but also the execution capabilities of the DMWAI team,” Wenceslao said.

In 2020, DMWAI deployed P5.04 billion or 66 percent of its net proceeds from its initial public offering for the development of its pipeline projects.

The company is on track to complete two projects in its pipeline – the 8912 Aseana Ave. (its biggest project to date) and Parqal, an integrated mixed-use development slated for completion in the fourth quarter.

Upon completion, the projects will boost DMWAI’s available gross leasable area by 140,000 square meter and further strengthen its recurring income stream.

DMWAI is master developer and primary owner of Aseana City, a 107.5-hectare project located along the coastal waters of Manila Bay.

Since 1965, DMW has reclaimed more than 2.4 million square meters of land, leased or developed 250,000 square meters of land and buildings, and completed over 140 construction and infrastructure projects, including large, complex government developments throughout the Philippines.