DMW income up 3% in 2022

MANILA, Philippines — D.M. Wenceslao and Associates Inc. (DMW) reported a net income of P2.1 billion for 2022, up three percent on fresh earnings from the expansion of projects.

DMW chief executive officer Delfin Wenceslao said the company remains mindful of risks as it continues to expand.

The company’s expansion plans include a 1.4-hectare land lease contract with St. Luke’s Medical Center; a fourth and final tower of residential development MidPark in Aseana City; and the construction of its flagship commercial project, Parqal, also in Aseana, which reached 89 percent completion rate as of December 2022, Wenceslao said.

DMW has kept leverage ratios low with peso-denominated and fixed-rate debt which kept the company insulated from forex fluctuations and the rise of interest rates.

“We also proactively locked-in favorable pricing for the majority of construction materials at the outset of our projects, safeguarding our costs from the run-up in prices,” Wenceslao said.

Core net income, which excludes CREATE-related tax gains and other one-off gains resulting from the termination of a joint venture agreement, grew at a faster pace of 13 percent year-on-year.

The company’s core net income is 27 percent higher than its pre-pandemic 2019 core net income of P1.7 billion.

Rental revenues improved by nine percent to P2.2 billion, accounting for 52 percent of the total revenues.

DMW attributed the growth in rental revenues to increased take-up in the newly opened commercial buildings.

Residential revenues rose over two-fold to P1.3 billion on the back of a higher number of units qualified for revenue recognition and faster construction progress.

DMW is the developer of Aseana City, a sprawling mixed-use development with a total land area of 107.5 hectares 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 300,000 square meters of land and buildings, and completed over 140 construction and infrastructure projects including large, complex government developments throughout the Philippines.