Property developer Megaworld Corp. on Tuesday said its net income in January to September went up by 14 percent to P17.92 billion from the previous year’s P15.68 billion despite posting lower profits in the third quarter.
Revenues for the period rose 9 percent to P60.61 billion from the previous year’s P55.64 billon, driven by the performance of the company’s core businesses, particularly its mall and office leasing, residential and hotels.
For the third quarter alone, the company’s income slid to P5.84 billion from the previous P5.87 billion. Revenues, meanwhile, grew a slim 4 percent to P19.95 billion from the previous P19.12 billion.
‘Our year-to-date performance continues to reflect the strength of our recurring income portfolio and the sustained demand across our residential and hotel offerings,’ Lourdes Gutierrez-Alfonso, the company’s president, said.
‘Even as we navigate mixed market conditions, we remain focused on delivering long-term value through innovation, operational efficiency, and township-led growth.’
During the nine-month period, real estate sales continue to take the lion’s share of its revenues at more than 60 percent of the total. It rose by 6 percent to P40.24 billion from the previous P37.85 billion, supported by stable sales take-up and continued construction progress across multiple residential developments in Metro Manila and the provinces.
Among the strongest contributors during the period were the residential projects in Uptown Bonifacio in Taguig, ArcoVia City in Pasig, Maple Grove in Cavite and Upper East in Bacolod.
Leasing revenues reached P16.24 billion, 15 percent higher than last year’s P14.16 billion, led by its offices that continued to outperform the industry.
Revenues from office segment grew 15 percent to P11.4 billion from the previous year’s P9.63 billion, fueled by sustained rental escalations, renewals, and new take-ups from expanding BPO firms, as well as traditional multinational companies.
During the period, Megaworld closed nearly 140,000 square meters in new office leases and almost 120,000 square meters in renewals.
Its shopping mall leasing revenues grew 13 percent to P5.1 billion from the previous year’s P4.52 billion, as foot traffic and consumer spending continued to grow across key mall developments.
Over the nine-month period, Megaworld opened and expanded new store spaces that
cater to some key international and lifestyle brands, particularly in Uptown Bonifacio, ArcoVia City, Eastwood City and in Lucky Chinatown.
Hotel operations also grew 13 percent to P4.13 billion in revenues from the previous P3.64 billion on higher room rates, increased business and leisure travel and the additional room inventory from newly opened hotels, such as Grand Westside Hotel.
Megaworld has 36 township developments all over the country and a land bank covering around 7,000 hectares.
Before the year ends, Megaworld is expected to launch another new township development outside of Metro Manila.
The company also targets to grow its office gross leasable area (GLA) to 2 million square meters and its retail GLA to 1 million square meters by 2030.These targets will bring Megaworld’s total leasing portfolio GLA to 3 million square meters in the next five years.