Megawide’s new real estate firm helped boost 2024 profit
While its construction business remained the main growth driver, Megawide Construction Corp.’s new real estate unit delivered a strong 2024.
This resulted in the group’s net income for the year doubling to P538 million.
The company led by tycoon Edgar Saavedra on Friday said its consolidated revenues had also jumped by 18 percent to P22.1 billion. This was buoyed by the construction business.
Construction revenues grew by 16 percent to P21 billion as project completion “remained on track,” according to Megawide.
The precast and construction solutions segment had a 28-percent surge in revenues to P5.22 billion.
Despite a relatively challenging environment for the real estate sector in the country, PH1 World Developers Inc.’s revenues ballooned more than four times to P711 million.
According to Megawide, this was due to “steady revenue conversion of sales from projects.” These include My Enso Lofts, The Hive, Northscapes, Modan Lofts and One Lancaster Park.
Entered in 2023
The Megawide Group began its foray into the real estate market in 2023. This was when it acquired PH1 from affiliate firm Citicore Holdings Investments Inc.
This year, half of Megawide’s P1.8-billion capital expenditure will be set aside for PH1. The subsidiary recently rolled out P14 billion worth of projects.
Meanwhile, land port operations at Parañaque Integrated Terminal Exchange (PITX) contributed P355 million to the group’s overall revenues. This means an increase of 2 percent due to higher occupancy levels.
According to Megawide, 98 percent of commercial spaces at PITX were leased out.
Broad-based growth
“The broad-based growth achieved last year shows our ability to adapt to changing business landscapes, particularly in the office leasing and real estate markets, to sustain momentum,” Megawide chair and CEO Saavedra said in their disclosure.
Megawide recently raised P5.3 billion from its preferred share offer. This was amid plans to boost PH1 and address growing property demand outside the National Capital Region.
The offer consisted of P1.78 billion series 6A shares, P1.19 billion series 6B shares and P2.3 billion series 6C shares.
These carry dividend rates of 7.6283 percent, 7.9606 percent and 8.2993 percent, respectively.
