D.M. Wenceslao & Associates Inc. said net income attributable to equity holders hit P1.91 billion in 2018, up 23 percent from 2017, boosted by a one-time gain from the settlement of company’s joint venture agreements worth P1.2 billion.
DM Wenceslao said in a disclosure to the stock exchange net income margin reached 89 percent from 56 percent in the prior year, reflecting the momentum in each of the businesses with office and residential segments as highlights in 2018.
Revenues amounted to P2.15 billion, lower from last year’s level, as the company did not sell any land in 2018. About 88 percent of the revenues were recurring income from rentals.
Revenues from the leasing of land rose five percent to P965.2 million while rentals of buildings and other sales related to leasing increased 77 percent and 90 percent to P762.1 million and P173.8 million, respectively.
Residential unit sales jumped 153 percent to P119.4 million.
“We have a clear set of strong results and compelling opportunities ahead. Profitability has consistently improved over the years, with net income increasing 26 percent annually since 2016,” said DM Wenceslao chief executive Delfin Angelo Wenceslao said.
“Our holistic approach to Aseana City master plan brings together our construction and real estate development capabilities from project planning to property management. This full scope of services provides us with a diversified earnings base and substantial recurring revenue streams,” said Wenceslao.
The property firm has earmarked P4 billion in capital expenditures this year to support the company’s rapid growth.
The firm over the next four years is scheduled to complete approximately 380,000 square meters of leasable and saleable properties.
Earlier in the year, the company delivered its third office building, Aseana Three, which added 30,000 sqm. to the company’s total leasable gross floor area.
Construction of 8912 Asean Ave. (formerly Aseana Four) has also started in light of sustained office demand and is on track for 2020 completion.
DM Wenceslao is scheduled to break ground on its second residential project. MidPark Towers is a four-tower condominium development that will generate as much as P9 billion in revenues.