D.M. Wenceslao and Associates, Inc. (DMW) reported a 44 percent hike in core net income to P1.88 billion last year from P1.31 billion in 2020 on the back of its resilient leasing businesses, improved residential gross margin, and a land sale.

In a disclosure to the Philippine Stock Exchange, the firm said its 2021 core net income is also 12 percent higher compared to its pre-pandemic 2019 core net income of P1.68 billion.

DMW booked earnings-bulky land sales amounting to P787.6 million and P935.9 million in 2021 and 2019, respectively. As such, core earnings in those fiscal years are closely comparable.

Core net income excludes the after-tax impact of one-off gains amounting to P850 million in 2019 and P1.0 billion in 2020 related to termination of a joint venture agreement as well the adjustment of tax expense in 2021 due to the effectivity of CREATE Law.

The Company’s recurring income consisting of rentals from land, building, and other revenues such as common use service area fees improved 2 percent to P1.99 billion, accounting for 58 percent of total revenues.

In the fourth quarter of 2021, DMW registered a 79 percent year-on-year increase in commercial building gross leasable area and the addition of a highly-prized land lease tenant in Aseana City.

DMW’s commercial building GLA expanded a massive 71,639 square meters to 162,351 sqm. as of end of 2021 from 90,712 sqm. in 2020 with the completion of an office development and a mixed-use building.

Meanwhile, Landers signed a 25-year Contract of Lease for a 15,064 sqm. parcel of land in Aseana City. These developments are expected to contribute markedly to DMW’s recurring earnings moving forward.

Meanwhile, residential revenues declined 18 percent to P615 million but gross profit improved 14 percent to P388 million due to a significantly higher gross profit margin of 63 percent in 2021 compared to 45 percent in 2020.

Towards the end of the year, DMW completed a P787.6 million land sale transaction.

“We remain in an evolving landscape which while crowded with opportunities is also filled with potential re-emerging risks as well as new risks, including geopolitical conflicts,” said DMW Chief Executive Delfin Angelo Wenceslao.

He noted that, “Amidst precarious circumstances, we remain steadfast in our two-pronged approach anchored on nimbleness. We remain mindful of risks through maintaining a more-than-capable balance sheet, implementing a business continuity plan, and prioritizing the welfare of stakeholders while hand-in-hand remaining on track with our expansion goals to capture opportunities beyond current risks.”