D.M. Wenceslao and Associates, Inc. (DMW) reported a 45 percent drop in net income to P526 million in the first quarter of 2023 from the P960.5 million earned in the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm explained that, in the first quarter of 2022, it recorded a 1,790sqm land sale whereas no land sale was closed yet as of the first quarter of 2023.
“While land sales are not part of the Company’s long-term revenue mix, DMW sells non-core parcels of land strategically,” it added. Currently, DMW only has about 4,200sqms of land available for sale.
When comparing the ex-land sale net income in first quarter of 2022, which was P362 million, DMW said its first quarter 2023 net income of P526 million reflects a 45 percent year-on-year increase.
Profits this year were driven by a significant jump in residential earnings and supported by stable rental earnings growth.
Residential revenues rose 83percent to P427 million on the back of a higher number of units qualified for revenue recognition, continued construction progress, and additional sales take up.
The Company’s rental revenues consisting of rentals from land, building, and other revenues including CUSA and parking fees improved 7 percent to P601 million, accounting for 55 percent of total revenues.
The growth in rental revenues was primarily driven by new locators and buoyed by rental escalation.
“As we navigate through 2023, we recognize the persistent challenges in the macroeconomic environment. Nevertheless, we remain optimistic as we strive to capitalize on silver linings in the Philippine property market,” said DMW Chief Executive Delfin Angelo Wenceslao.
He added that, “The scheduled opening of our flagship mixed-use project Parqal in 2023 is well-positioned to benefit from the surging mobility and macroeconomic recovery in the country.”