Megaworld netted record P12.09B in the first semester
The gradual recovery of the country’s real estate market spilled over to developer Megaworld Corp., which particularly benefited from strong demand for its township developments.
In a regulatory filing on Tuesday, the Andrew Tan-led developer said its township strategy was the main driver for its earnings growth in the first semester, including its other core businesses.
Megaworld’s bottom line in the January to June period surged by 23 percent to P12.09 billion while revenues climbed by a tenth to P43.09 billion.
“We are always focused on ensuring that our core segments will continue to deliver exceptional performance even in challenging environments,” Megaworld president and CEO Lourdes Gutierrez-Alfonso said in a statement.
Real estate sales totaled P27.12 billion in the first semester, up by 9 percent as Megaworld registered strong demand both in its Metro Manila and provincial projects.
The company particularly credited Uptown Bonifacio, McKinley Hill, McKinley West, Eastwood City, ArcoVia City, Iloilo Business Park, Maple Grove and The Upper East Bacolod as the main revenue contributors for this segment.
Megaworld launched its 36th township, Nascala Coast, in Batangas province in the first semester. Subsidiary Global-Estate Resorts Inc. is currently developing the P5-billion beachside township.
Meanwhile, leasing revenues of its office unit also jumped by 17 percent to P7.4 billion on gains from new assets and leases, as well as higher rent.
Megaworld Premier Offices closed almost 100,000 square meters in new leases in the second quarter alone, mostly thanks to business process outsourcing and multinational firms.
Megaworld Lifestyle Malls contributed P3.33 billion to the company’s overall top line. This represented a 10-percent increase. It was attributed to higher foot traffic and new leases to premium tenants, including Japanese home furniture store Nitori and Korean fashion retail store 8Seconds.
Hotel revenues, on the other hand, grew by 19 percent to P2.81 billion due to higher room rates and additional room keys.
“What excites us most is the broad-based strength we are seeing—offices, malls, residential and hotels and all growing,” Gutierrez-Alfonso said. “That gives us confidence as we scale further.”
Real estate broker Colliers Philippines reported that overall vacancy in Metro Manila is expected to improve by next year as developers focused on selling their existing inventory instead of launching new projects.
The upscale and luxury segments remained resilient, accounting for only 10 percent of the unsold ready-for-occupancy units in Metro Manila.
Megaworld earlier confirmed plans to enter the luxury condominium market through its Signature Collection brand.
