Homes pull up Megaworld H1 earnings by 9%
Strong real estate sales lifted the first-semester profit of property giant Megaworld Corp. by 9 percent to P8.55 billion as more customers took interest in its township projects.
The billionaire Andrew Tan-led company on Wednesday said revenues jumped by 22 percent to P39.1 billion.
Real estate sales reached P24.82 billion, a 30-percent surge on high demand for residential properties in Megaworld’s township developments, particularly in Taguig City, Cavite, Bulacan, Palawan and Cebu.
“We continue to see robust demand for our residential properties outside of Metro Manila,” Megaworld president Lourdes T. Gutierrez-Alfonso said in a statement.
In the second quarter alone, Megaworld launched P18 billion worth of residential projects, mostly in areas beyond the capital region.
The company aims to expand its residential portfolio to 35 townships by the end of the year from 33 currently.
Revenues from its hospitality segment via Megaworld Hotels and Resorts swelled by 38 percent to P2.36 billion as meetings, incentives, conventions and exhibitions activities recovered along with local tourism.
Megaworld in April announced its upcoming Mactan Expo Center in Cebu province, which will have a 2,500-seating capacity.
The P1.5-billion project set for completion next year is said to be the first standalone convention center in Cebu.
In June, Megaworld also unveiled the 1,530-room Grand Westside Hotel, which it claimed to be the largest hotel in the Philippines, within Westside City in Parañaque City.
As for the mall segment, Megaworld Lifestyle Malls saw revenues climb by 19 percent to P3.02 billion on higher tenant sales and increased foot traffic.
Leasing revenues rose by 6 percent to P9.33 billion.
Meanwhile, revenues of Megaworld Premier Offices were flat at P6.31 billion due to “headwinds in the Philippine office industry.”
Earlier, real estate investment management firm Colliers Philippines said the office vacancy rate in Metro Manila stood at 18.3 percent.
It warned that this could worsen to 22.2 percent by the end of the year once Philippine offshore gaming operators (Pogos) make their exit following President Marcos’ ban order, seeing as these comprise 3.5 percent of the total office space in Metro Manila.
Megaworld currently has less than 5 percent exposure to Pogos, data from COL Financial showed.
This year, the company will set aside P55 billion in capital expenditures to expand its portfolio outside Metro Manila.
Over the weekend, Megaworld announced plans to build its 33rd township, a P12-billion project in Batangas province under its partnership with luxury wellness resort The Farm at San Benito.
