Property developer Megaworld Corp. said net income attributable to its parent company increased 17 percent in 2018 to P15.2 billion from P13 billion in 2017 on double-digit growth in residential and rental revenues.
Megaworld said in a statement over the weekend consolidated revenues grew 15 percent in 2018 to P57.4 billion from P50 billion in 2017.
Rental businesses, comprising of office and commercial leasing, rose 21 percent to P14.3 billion from the previous year’s P11.8 billion.
Leasing portfolio contributed 25 percent to the group’s total consolidated revenues last year.
Megaworld said that in 2018, it achieved more than 70 percent of its 2020 rental income target of P20 billion.
The company opened its biggest mall development outside of Metro Manila in 2018—the Festive Walk Mall in Iloilo Business Park offering around 90,000 square meters in gross floor area.
It said that in terms of office development, it won the long-term lease contract to build the 25-story Philippine Global Service Center of JPMorgan Chase Bank N.A.
The project was regarded as the country’s biggest single lease transaction to date was, with around 70,000 square meters of ‘build-to-suit’ office spaces for a single company alone.
“We have already secured multiple pre-lease deals for our office buildings as well those that are in the pipeline until next year. Same goes to our mall and commercial spaces that are set to open in our various townships,” Megaworld chief strategy officer Kevin Tan said.
“For our residential properties, we continue to see strong take-up especially in our mature townships, and there is already a consistently growing interest in our newly-launched townships,” Tan said.
Megaworld’s residential business went up 11.5 percent in 2018 to P38 billion from P34.1 billion in 2017.
Megaworld launched 25 residential projects with total sales value of around P106 billion last year. Reservation sales also reached P135 billion in 2018.
Hotel revenues went up 14 percent in 2018 to P1.5 billion from P1.3 billion in 2017.
The company launched two new hotels last year, including the 684-room Savoy Hotel Manila in Newport City and the 126-room Twin Lakes Hotel in Twin Lakes, Laurel, Batangas.
This brought the number of Megaworld’s hotels to seven by end-2018.
“We have gained the fruits of our expansion in the regions as we saw continuing growth in the demand for residential units as well as office and commercial spaces in our various townships across the country. Perhaps, as we build these townships, people saw the advantage of living where they work and living where everything is just within reach. This model makes every aspect of our business viable and expandable, and we continue to spot for opportunities where we can further grow and innovate our offerings,” said Tan.