Megaworld books P8.8B in H1, up 31%

Andrew Tan-led property giant Megaworld Corp. saw its net income grow by double-digits in the first semester of 2023.

In a disclosure to the Philippine Stock Exchange on Thursday, Megaworld reported a net income of P8.8 billion during the January to June period, up 31% year-on-year.

This is on the back of 17% growth in consolidated revenues to P32 billion as “core businesses registered robust performance during the period.”

“Our steadfast focus on our township model allowed us to sustain our strong performance into the second quarter of the year. With increasing demand for residential and commercial properties outside Metro Manila, we have properly positioned ourselves to achieve growth through strategic land banking,” said Megaworld chief strategy officer Kevin Tan.

“We also worked doubly hard in coming up with new, innovative, and sustainable product offerings in order to further strengthen our leadership as a pioneering real estate company,” Tan added.

Real estate sales for the period rose by 12% year-on-year to P19.1-billion, driven by the higher completion rate of various projects.

Reservation sales also increased by 49% to P76.1-billion, accounting for 59% of the company’s year-end reservation sales target of P130 billion.

During the first half of the year, the company said it saw a strong uptick in the demand for residential projects in two Taguig townships, particularly in McKinley West and Uptown Bonifacio.

From January to June this year, Megaworld already launched P28.2-billion worth of projects.

In the second quarter alone, Megaworld said it has already launched four big projects in Pampanga, Iloilo, Rizal, and Palawan.

These include Savoy Hotel Capital Town in the City of San Fernando, Pampanga worth P4.2 billion; Firenze Residences in Iloilo Business Park worth P4.2 billion; Bellara Tower 2 in Highland City, Cainta, Rizal worth P3.7-billion; and Oceanfront Premier Residences in Paragua Coastown, San Vicente, Palawan worth P2.3 billion.

Leasing revenues, meanwhile, grew by 17% to P8.8-billion on the back of the company’s stable office segment and the continued recovery of mall rental income.

Megaworld Premier Offices, likewise, grew to P6.3 billion, up 4% from P6 billion in the same period last year as rental rates continue to escalate coupled with new signing transactions.

The company said BPOs or business process outsourcing firms remained as the top rental contributors to Megaworld Premier Offices.

Megaworld Lifestyle Malls also booked P2.5 billion sales, up 71% year-on-year.

The strong growth was mainly driven by increased spending and higher rents as the company started to collect full rents beginning this year.

Megaworld Hotels and Resorts reported P1.7 billion in hotel revenues, up 58% year-on-year.—AOL, GMA Integrated News