By James A. Loyola
Megaworld Corp., the country’s largest developer of integrated urban townships, reported a 17 percent hike in recurring net income to P15.8 billion last year from P13.6 billion in 2017.
In a statement, the firm said this excludes a P113 million non-recurring gain registered in 2017.
Consolidated revenues grew by 15 percent to P57.4 billion in 2018 from the previous year’s P50 billion (excluding the P113-million non-recurring gain).
Megaworld’s rental businesses, comprising of office and commercial leasing, strongly contributed to the topline, rising 21 percent to P14.3 billion in 2018 from the previous year’s P11.8 billion.
This contributed 25 percent of the total consolidated revenues during the year. In 2018 alone, Megaworld has already achieved over 70 percent of its rental income target of P20 billion by end of 2020.
Last year, Megaworld opened a mall in Iloilo and two community malls in Makati and Las Piñas cities. It also bagged the long-term lease contract to build the 25-storey Philippine Global Service Center of JPMorgan Chase Bank, N.A.
“We have already secured multiple pre-lease deals for our office buildings as well that are in the pipeline until next year. Same goes to our mall and commercial spaces that are set to open in our various townships,” said Megaworld Chief Strategy Officer Kevin L. Tan.
He added that, “for our residential properties, we continue to see strong take-up especially in our mature townships, and there is already a consistently growing interest in our newly-launched townships.”
Megaworld’s residential business saw a double-digit growth of 11.5 percent in 2018 to P38 billion from P34.1 billion during the same period the previous year. This contributed 66 percent of the total consolidated revenues during the year.
The Megaworld Group launched 25 residential projects in 2018, with a total sales value of around P106 billion. The company also achieved P135 billion worth of sales reservation during the year.
Megaworld’s hotel business grew its revenues by 14 percent to P1.5 billion compared to P1.3 billion in 2017. The company launched two new hotels last year: the Savoy Hotel Manila and the Twin Lakes Hotel Laurel, Batangas.
“We have gained the fruits of our expansion in the regions as we saw continuing growth in the demand for residential units as well as office and commercial spaces in our various townships across the country,” said Tan.