Property leasing business stabilizes DM Wenceslao profits

Listed property and construction firm DM Wenceslao and Associates Inc. saw its net income in the first semester slightly up to P918 million from a year ago’s P912 million, boosted by its leasing operations.

In a recent disclosure, the company said recurring revenues consisting of rentals from land, buildings and others climbed by 34 percent to P1.6 billion.

Revenues from commercial buildings jumped by 59 percent to P669 million, as it witnessed stronger leasing activities, with marquee logistics and traditional tenants making up most of the occupancy.

The gross leasable area also increased to 235,846 square meters (sqm) from the 162,351 sqms in the same period last year.

Land rentals expanded by 14 percent to P680 million, while residential revenues stood at P235 million.

“Our performance in the first half of 2024 highlights the stability and robust foundation of our business model,” said company CEO Delfin Angelo Wenceslao.

“Our best-in-class anchor locators— including top logistics multinationals, one of the country’s largest malls, major grocery warehouse chains and the Philippines’ leading health-care institution ensure stable, long-term income streams. These partnerships, which extend up to 50 years, offer not only high margins but also significant growth opportunities through percentage-based sales collections,” he added.

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The executive said D.M. Wenceslao, developer of the 107-hectare Aseana City, would continue maximizing their properties by integrating public amenities with commercial developments.

“Aseana City provides a unique third-space experience that blends work, leisure, and community engagement. This approach not only enhances the attractiveness of our properties but also fosters a vibrant and interconnected community,” he said.

Since establishing in the local market in the ‘60s, the company has developed more than 400,000 square meters of land and buildings, as well as completed over 140 construction and infrastructure projects nationwide.