Rentals buoy DM Wenceslao first-half earnings

DM Wenceslao and Associates Inc. (DMW) saw modest growth in its bottom line in the first six months of the year thanks to gains from its rental businesses.

On Friday, the developer of Aseana City disclosed that its net income inched up by 1.96 percent to P936.2 million. Its top line, meanwhile, rose by 3.7 percent to P1.96 billion.

Recurring revenues accounted for 90 percent of the total as these climbed by 9 percent to P1.7 billion. The include rentals from land, commercial buildings and other ancillary leasing sources,

Meanwhile, commercial building and ancillary rental revenues jumped 17 percent to P1 billion. This was due to a strong lease take-up and higher collections from its tenants at Parqal, DMW’s five-hectare mixed-use development in Aseana City.

On the other hand, residential revenues slipped by a quarter to P178 million. This reflected the challenging real estate environment in the country.

Still, DMW remained optimistic that the near-completion of its Midpark Towers project would help provide a boost. Two of four towers are already completed.

According to DMW, the two remaining towers are scheduled for completion within the second semester. At the same time, unit handovers were ongoing.

“By focusing on building a community rather than standalone structures, we have created a stable platform that can weather industry cycles and deliver consistent value to our stakeholders,” DMW chief finance officer Benigno Tatunay said in a statement.

DMW in May broke ground for Aseana Plaza. This is the firm’s largest commercial project to date as demand for modern workspaces rises.

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The first phase will have around 70,000 square meters of gross leasable area, with the entire project spanning 130,000 sqm.

Once completed by the end of 2028, this will widen DMW’s commercial portfolio to at least 300,000 sqm.

The office building is intended to house global logistics and shipping firms, business process outsourcing companies and traditional corporate headquarters.

Based on its Manila survey report released in April, real estate broker Colliers Philippines said 33 percent of property stakeholders favored more collaborative spaces for their workplace. Also, 26 percent preferred the incorporation of smart technologies.