DM Wenceslao eyes 20% profit, sets P21-B capex

By James A. Loyola

D.M. Wenceslao & Associates, Inc. is aiming to grow its net income by 10 to 20 percent this year after reporting a 23 percent growth in attributable net income growth to P1.91 billion last year.

In a press briefing, DMWAI Chief Executive Officer Delfin Angelo Wenceslao said net income margin jumped to 89 percent from 56 percent in the prior year, reflecting continued momentum in each of the businesses with office and residential segments as highlights in 2018.

Revenues amounted to P2.15 billion, of which P1.90 billion or 88 percent are recurring income from rentals. Leasing of land grew 5 percent to P965.2 million and while rentals of buildings and other revenues related to leasing increased 77 percent and 90 percent to P762.1 million and P173.8 million, respectively.

Residential unit sales increased 153 percent to P119.4 million. Meanwhile, other income in connection with the settlement of the Company’s joint venture agreements was P1.20 billion.

“We have a clear set of strong results and compelling opportunities ahead. Profitability has consistently improved over the years, with net income increasing 26 percent annually since 2016,” said Wenceslao.

He added that, “our holistic approach to Aseana City master plan brings together our construction and real estate development capabilities from project planning to property management. This full scope of services provides us with a diversified earnings base and substantial recurring revenue streams.”

Wenceslao noted that, “more importantly, it positions us well to complete approximately 380,000 square meters (sq.m.) of leasable and saleable properties by 2022 and grow Aseana City into a next generation central business district within Metro Manila.”

The firm is allotting P21-billion capital expenditures (capex) for the next five years with about P4 billion earmarked for 2019, he said.